Live News • May 04
Banner Expands Pacific Northwest Reach With $177 Million All-Stock Pacific Financial Acquisition Banner Corporation agreed to acquire Pacific Financial Corporation in an all-stock deal valued at about $177 million.
The combined bank is expected to have roughly $18b in assets and a larger branch network across Western Washington and Oregon.
Pacific Financial shareholders are set to receive 0.2633 shares of Banner common stock for each Pacific Financial share, and Bank of the Pacific’s CEO will join Banner’s executive team.
The all-stock structure means Pacific Financial investors are swapping into Banner shares rather than receiving cash, so your outcome will be tied to how the combined company performs after closing. With approximately $18b in assets and 18 additional branches from Bank of the Pacific, Banner is set to deepen its presence in the Pacific Northwest and broaden its customer base in Western Washington and Oregon.
Leadership continuity is also part of the story. Bank of the Pacific CEO Denise Portmann is expected to join Banner’s executive team, which can help integrate products, services and local market knowledge. Analysts commenting on the deal see it as relatively low risk and expect it to contribute positively to earnings per share from 2027, while also increasing Banner’s market share of deposits in the region. For you as an investor, the key areas to watch will be regulatory and shareholder approvals ahead of the planned third-quarter 2026 closing, and how efficiently the combined bank aligns its operations once the transaction is completed. Announcement • May 01
Banner Corporation (NasdaqGS:BANR) entered into a definitive merger agreement to acquire Pacific Financial Corporation (OTCPK:PFLC) for approximately $180 million. Banner Corporation (NasdaqGS:BANR) entered into a definitive merger agreement to acquire Pacific Financial Corporation (OTCPK:PFLC) for approximately $180 million on April 30, 2026. Under the terms of the merger agreement, Pacific Financial shareholders will receive 0.2633 shares of Banner common stock for each share of Pacific Financial common stock. Based on Banner’s closing price of $66.25 per share on April 29, 2026, the implied value of the merger consideration is $17.44 per Pacific share, or approximately $177 million in aggregate. The merger is expected to qualify as a tax-free reorganization for Pacific Financial shareholders. Following closing, based on the number of issued and outstanding shares of Banner common stock and shares of Pacific Financial common stock currently outstanding, Pacific Financial shareholders are expected to own approximately 7%, and Banner shareholders will own approximately 93%, of the combined company. Following closing, the combined company is expected to have approximately $18 billion in assets.
The boards of directors of Banner and Pacific Financial each unanimously approved the merger agreement and the merger. The transaction is subject to approval by Pacific Financial shareholders, regulatory approvals and other customary closing conditions and is expected to close in the third quarter of 2026. Banner expects the transaction, once closed, to be immediately accretive to 2027 earnings per share, excluding one-time transaction expenses.
Piper Sandler & Co. acted as financial advisor and Miller Nash Graham & Dunn LLP acted as legal advisor for Pacific Financial Corporation. BofA Securities, Inc. acted as financial advisor and Ballard Spahr LLP acted as legal advisor for Banner Corporation. Declared Dividend • Apr 26
First quarter dividend of US$0.52 announced Shareholders will receive a dividend of US$0.52. Ex-date: 5th May 2026 Payment date: 15th May 2026 Dividend yield will be 3.0%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 5.2% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 24
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: US$1.61 (up from US$1.31 in 1Q 2025). Revenue: US$170.1m (up 8.3% from 1Q 2025). Net income: US$54.7m (up 21% from 1Q 2025). Profit margin: 32% (up from 29% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. New Risk • Apr 23
New major risk - Revenue and earnings growth Earnings have declined by 0.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.4% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Apr 07
Banner Corporation, Annual General Meeting, May 20, 2026 Banner Corporation, Annual General Meeting, May 20, 2026. Announcement • Mar 31
Banner Corporation to Report Q1, 2026 Results on Apr 22, 2026 Banner Corporation announced that they will report Q1, 2026 results After-Market on Apr 22, 2026 Announcement • Mar 03
Banner Corporation and Banner Bank Announces Board and Board Committee Appointments, Effective March 1, 2026 Banner Corporation announced that Monica O’Reilly and Judith Steiner have been appointed to the Board of Directors effective March 1, 2026. Monica O’Reilly and Judith Steiner were also appointed to the Board of Directors of Banner Bank. Monica O’Reilly will initially serve on the Corporate Governance/Nominating and Risk Committees of the Board. Monica O’Reilly is a strategic leader who leverages over 30 years of experience helping global financial services companies achieve business results. She is an advisor to Fortune 500 C-suite executives, corporate boards and audit committees on regulatory compliance, enterprise and operational risk management, artificial intelligence and cybersecurity. Monica O’Reilly was the Vice Chairman and US Financial Services Leader at Deloitte from 2020 to 2025, and served on Deloitte’s Board Council and Strategic Investment Committee in which she oversaw various acquisitions and investments. Under her leadership as Co-Chair for Deloitte’s Nominating Committee, she oversaw CEO and board director selection. Monica O’Reilly has co-authored reports on board governance, the financial marketplace, and risk management. She was named as one of the “Most Influential Women in Business” by the San Francisco Business Journal in 2021. Monica O’Reilly holds a B.A. in English and Education from Queen’s University Belfast and completed Wharton Business School’s Executive Leadership Program. Judith Steiner will initially serve on the Credit Risk and Risk Committees of the Board. Judith Steiner has more than 30 years of experience in the financial services industry, with significant expertise in the areas of legal, risk and compliance. She served as Executive Vice President and Chief Risk Officer of Banner Bank from 2016 to 2021. Prior to Banner, Judith Steiner worked at FirstMerit Bank, N.A. from 1990 to 2015, including serving as Executive Vice President, Chief Risk Officer, General Counsel and Secretary from 2008 to 2015. In these roles, her areas of responsibility included enterprise risk management (ERM), compliance, anti-money laundering (AML), Bank Secrecy Act (BSA), Office of Foreign Assets Control (OFAC), fraud, Community Reinvestment Act, insurance, and credit review. Judith Steiner earned a Juris Doctor from Case Western Reserve University and a Bachelor of Arts from the University of Akron. Reported Earnings • Feb 28
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: US$5.67 (up from US$4.90 in FY 2024). Revenue: US$647.7m (up 7.8% from FY 2024). Net income: US$195.4m (up 16% from FY 2024). Profit margin: 30% (up from 28% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.96% (up from 3.75% in FY 2024). Cost-to-income ratio: 60.2% (down from 62.3% in FY 2024). Non-performing loans: 0.39% (up from 0.33% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 2% per year. Declared Dividend • Jan 25
Fourth quarter dividend of US$0.50 announced Shareholders will receive a dividend of US$0.50. Ex-date: 3rd February 2026 Payment date: 13th February 2026 Dividend yield will be 3.2%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (34% payout ratio) and is expected to be well covered in 3 years' time (33% forecast payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 11% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 22
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: US$5.67 (up from US$4.90 in FY 2024). Revenue: US$647.7m (up 7.8% from FY 2024). Net income: US$195.4m (up 16% from FY 2024). Profit margin: 30% (up from 28% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 2% per year. Announcement • Dec 31
Banner Corporation to Report Q4, 2025 Results on Jan 21, 2026 Banner Corporation announced that they will report Q4, 2025 results After-Market on Jan 21, 2026 Recent Insider Transactions Derivative • Nov 28
Insider notifies of intention to sell stock James P. McLean intends to sell 4k shares in the next 90 days after lodging an Intent To Sell Form on the 26th of November. If the sale is conducted around the recent share price of US$64.12, it would amount to US$224k. Since March 2025, James P.'s direct individual holding has increased from 11.40k shares to 13.55k. There have been no trades via on-market transactions or options from company insiders in the last 12 months. Declared Dividend • Oct 20
Third quarter dividend increased to US$0.50 Dividend of US$0.50 is 4.2% higher than last year. Ex-date: 4th November 2025 Payment date: 14th November 2025 Dividend yield will be 3.1%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (35% payout ratio) and is expected to be well covered in 3 years' time (33% forecast payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 12% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 16
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: US$1.55 (up from US$1.31 in 3Q 2024). Revenue: US$168.0m (up 11% from 3Q 2024). Net income: US$53.5m (up 19% from 3Q 2024). Profit margin: 32% (up from 30% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 10%. Revenue is forecast to grow 8.3% p.a. on average during the next 2 years, compared to a 7.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 2% per year. Announcement • Sep 30
Banner Corporation to Report Q3, 2025 Results on Oct 15, 2025 Banner Corporation announced that they will report Q3, 2025 results After-Market on Oct 15, 2025 Announcement • Sep 04
Banner Corporation and Banner Bank Announce the Appointment of Millicent Tracey as Director, Effective September 1, 2025 Banner Corporation announced that Millicent Tracey has been appointed to the Board of Directors effective September 1, 2025. Ms. Tracey was also appointed to the Board of Directors of Banner Bank. She will initially serve on the Corporate Governance/Nominating Committee and the Risk Committee. Ms. Tracey has significant expertise in the areas of banking, payment services, and fintech strategies, and more than 20 years of experience in the financial services industry. In particular, she has advised on business-to-business digital payments strategies, innovative technology solutions, product go-to-market launch strategies, regulatory compliance, cyber security, fraud, treasury management, and risk mitigation strategies. She currently serves as a Board Director for a privately-held fintech company. Ms. Tracey served on the Board of Directors of California BanCorp and its banking subsidiary, California Bank of Commerce, from 2021 until 2024. She was a Fintech Advisor for Afinis, the innovation arm of Nacha, from 2019 until 2023. She worked for Wells Fargo in the San Francisco Bay area for more than 19 years, most recently as Senior Vice President, Payments API Product Manager from 2014 until 2019. Ms. Tracey earned a Juris Doctor from Mitchell Hamline School of Law and a Bachelor of Arts from the University of Wisconsin – Madison. Declared Dividend • Jul 21
Second quarter dividend of US$0.48 announced Dividend of US$0.48 is the same as last year. Ex-date: 5th August 2025 Payment date: 15th August 2025 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 7.0% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 17
Second quarter 2025 earnings: EPS in line with expectations, revenues disappoint Second quarter 2025 results: EPS: US$1.31 (up from US$1.15 in 2Q 2024). Revenue: US$157.4m (up 6.8% from 2Q 2024). Net income: US$45.5m (up 14% from 2Q 2024). Profit margin: 29% (up from 27% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 8.7% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Jul 17
Banner Corporation Declares Quarterly Cash Dividend, Payable on August 15, 2025 Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share payable August 15, 2025, to common shareholders of record on August 5, 2025. Announcement • Jun 30
Banner Corporation to Report Q2, 2025 Results on Jul 16, 2025 Banner Corporation announced that they will report Q2, 2025 results After-Market on Jul 16, 2025 Declared Dividend • Apr 20
First quarter dividend of US$0.48 announced Dividend of US$0.48 is the same as last year. Ex-date: 29th April 2025 Payment date: 9th May 2025 Dividend yield will be 3.2%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 6.3% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 17
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: US$1.31 (up from US$1.09 in 1Q 2024). Revenue: US$157.1m (up 9.0% from 1Q 2024). Net income: US$45.1m (up 20% from 1Q 2024). Profit margin: 29% (up from 26% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.7%. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 5 highly experienced directors. Independent Director Margot Copeland was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 31
Banner Corporation to Report Q1, 2025 Results on Apr 16, 2025 Banner Corporation announced that they will report Q1, 2025 results After-Market on Apr 16, 2025 Reported Earnings • Feb 28
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: US$4.90 (down from US$5.35 in FY 2023). Revenue: US$601.0m (down 1.4% from FY 2023). Net income: US$168.9m (down 8.0% from FY 2023). Profit margin: 28% (down from 30% in FY 2023). The decrease in margin was primarily driven by higher expenses. Net interest margin (NIM): 3.75% (down from 4.01% in FY 2023). Cost-to-income ratio: 62.3% (up from 57.9% in FY 2023). Non-performing loans: 0.33% (up from 0.27% in FY 2023). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 2.3%. Revenue is forecast to grow 7.3% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Feb 27
Banner Corporation, Annual General Meeting, May 22, 2025 Banner Corporation, Annual General Meeting, May 22, 2025. Declared Dividend • Jan 26
Fourth quarter dividend of US$0.48 announced Dividend of US$0.48 is the same as last year. Ex-date: 4th February 2025 Payment date: 14th February 2025 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (39% payout ratio) and is expected to be well covered in 3 years' time (36% forecast payout ratio). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 14% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 23
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: US$4.90 (down from US$5.35 in FY 2023). Revenue: US$601.0m (down 1.4% from FY 2023). Net income: US$168.9m (down 8.0% from FY 2023). Profit margin: 28% (down from 30% in FY 2023). The decrease in margin was primarily driven by higher expenses. Net interest margin (NIM): 3.75% (down from 4.01% in FY 2023). Cost-to-income ratio: 62.3% (up from 57.9% in FY 2023). Non-performing loans: 0.33% (up from 0.27% in FY 2023). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 2.3%. Revenue is forecast to grow 7.1% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jan 23
Banner Corporation Declares Quarterly Cash Dividend, Payable on February 14, 2025 Banner Corporation announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share payable on February 14, 2025, to common shareholders of record on February 4, 2025. Announcement • Dec 31
Banner Corporation to Report Q4, 2024 Results on Jan 22, 2025 Banner Corporation announced that they will report Q4, 2024 results After-Market on Jan 22, 2025 Declared Dividend • Oct 20
Third quarter dividend of US$0.48 announced Dividend of US$0.48 is the same as last year. Ex-date: 5th November 2024 Payment date: 15th November 2024 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 15% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Oct 18
Price target increased by 10% to US$70.17 Up from US$63.50, the current price target is an average from 6 analysts. New target price is 5.1% above last closing price of US$66.75. Stock is up 64% over the past year. The company is forecast to post earnings per share of US$4.78 for next year compared to US$5.35 last year. Reported Earnings • Oct 17
Third quarter 2024 earnings: EPS exceeds analyst expectations Third quarter 2024 results: EPS: US$1.31 (down from US$1.33 in 3Q 2023). Revenue: US$152.0m (flat on 3Q 2023). Net income: US$45.2m (down 1.5% from 3Q 2023). Profit margin: 30% (in line with 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 12%. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Sep 30
Banner Corporation to Report Q3, 2024 Results on Oct 16, 2024 Banner Corporation announced that they will report Q3, 2024 results After-Market on Oct 16, 2024 Declared Dividend • Jul 21
Second quarter dividend of US$0.48 announced Dividend of US$0.48 is the same as last year. Ex-date: 6th August 2024 Payment date: 16th August 2024 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 2.2% over the next year, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Jul 19
Price target increased by 12% to US$57.33 Up from US$51.17, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of US$58.16. Stock is up 31% over the past year. The company is forecast to post earnings per share of US$4.54 for next year compared to US$5.35 last year. Reported Earnings • Jul 18
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: US$1.15 (up from US$1.15 in 2Q 2023). Revenue: US$147.4m (up 2.2% from 2Q 2023). Net income: US$39.8m (flat on 2Q 2023). Profit margin: 27% (in line with 2Q 2023). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 1.3%. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Jul 18
Banner Corporation Declares Quarterly Cash Dividend, Payable on August 16, 2024 Banner Corporation declared a regular quarterly cash dividend of $0.48per share. The dividend will be payable August 16, 2024, to common shareholders of record on August 6, 2024. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$58.48, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Banks industry in the US. Total returns to shareholders of 27% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$99.68 per share. Announcement • Jun 29
Banner Corporation to Report Q2, 2024 Results on Jul 17, 2024 Banner Corporation announced that they will report Q2, 2024 results After-Market on Jul 17, 2024 Reported Earnings • May 09
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: US$1.09 (down from US$1.62 in 1Q 2023). Revenue: US$144.0m (down 12% from 1Q 2023). Net income: US$37.6m (down 32% from 1Q 2023). Profit margin: 26% (down from 34% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 3.5%. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 6.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Apr 25
Upcoming dividend of US$0.48 per share Eligible shareholders must have bought the stock before 29 April 2024. Payment date: 10 May 2024. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.0%). Declared Dividend • Apr 22
First quarter dividend of US$0.48 announced Dividend of US$0.48 is the same as last year. Ex-date: 29th April 2024 Payment date: 10th May 2024 Dividend yield will be 4.3%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 2.1% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 18
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: US$1.09 (down from US$1.62 in 1Q 2023). Revenue: US$144.0m (down 12% from 1Q 2023). Net income: US$37.6m (down 32% from 1Q 2023). Profit margin: 26% (down from 34% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 3.5%. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Apr 18
Banner Corporation Declares Quarterly Cash Dividend , Payable May 10, 2024 Banner Corporation announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share. The dividend will be payable May 10, 2024, to common shareholders of record on April 30, 2024. Announcement • Mar 29
Banner Corporation to Report Q1, 2024 Results on Apr 17, 2024 Banner Corporation announced that they will report Q1, 2024 results After-Market on Apr 17, 2024 Reported Earnings • Feb 26
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$5.35 (down from US$5.70 in FY 2022). Revenue: US$609.6m (down 1.4% from FY 2022). Net income: US$183.6m (down 6.0% from FY 2022). Profit margin: 30% (down from 32% in FY 2022). Net interest margin (NIM): 4.01% (up from 3.68% in FY 2022). Cost-to-income ratio: 57.9% (down from 58.0% in FY 2022). Non-performing loans: 0.27% (up from 0.23% in FY 2022). Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 1.3%. Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jan 30
Upcoming dividend of US$0.48 per share at 4.0% yield Eligible shareholders must have bought the stock before 06 February 2024. Payment date: 16 February 2024. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (4.6%). Higher than average of industry peers (3.2%). Reported Earnings • Jan 19
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$5.35 (down from US$5.70 in FY 2022). Revenue: US$609.6m (down 1.4% from FY 2022). Net income: US$183.6m (down 6.0% from FY 2022). Profit margin: 30% (down from 32% in FY 2022). Net interest margin (NIM): 4.01% (up from 3.68% in FY 2022). Cost-to-income ratio: 57.9% (down from 58.0% in FY 2022). Non-performing loans: 0.27% (up from 0.23% in FY 2022). Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 1.3%. Revenue is forecast to grow 3.3% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Dec 30
Banner Corporation to Report Q4, 2023 Results on Jan 18, 2024 Banner Corporation announced that they will report Q4, 2023 results After-Market on Jan 18, 2024 Price Target Changed • Dec 29
Price target increased by 9.3% to US$55.00 Up from US$50.33, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of US$54.71. Stock is down 14% over the past year. The company is forecast to post earnings per share of US$5.40 for next year compared to US$5.70 last year. Upcoming Dividend • Oct 26
Upcoming dividend of US$0.48 per share at 4.7% yield Eligible shareholders must have bought the stock before 02 November 2023. Payment date: 13 November 2023. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of American dividend payers (5.3%). Higher than average of industry peers (4.1%). Reported Earnings • Oct 19
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: US$1.33 (down from US$1.43 in 3Q 2022). Revenue: US$152.4m (down 2.3% from 3Q 2022). Net income: US$45.9m (down 6.6% from 3Q 2022). Profit margin: 30% (down from 32% in 3Q 2022). Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) also missed analyst estimates by 1.6%. Revenue is forecast to stay flat during the next 2 years compared to a 4.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Sep 30
Banner Corporation to Report Q3, 2023 Results on Oct 18, 2023 Banner Corporation announced that they will report Q3, 2023 results After-Market on Oct 18, 2023 Price Target Changed • Sep 28
Price target decreased by 7.7% to US$52.17 Down from US$56.50, the current price target is an average from 6 analysts. New target price is 25% above last closing price of US$41.59. Stock is down 29% over the past year. The company is forecast to post earnings per share of US$5.40 for next year compared to US$5.70 last year. Major Estimate Revision • Jul 26
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$669.3m to US$642.1m. EPS estimate also fell from US$6.16 per share to US$5.40 per share. Net income forecast to shrink 9.1% next year vs 9.7% decline forecast for Banks industry in the US. Consensus price target down from US$56.50 to US$52.50. Share price fell 10% to US$44.45 over the past week. Upcoming Dividend • Jul 24
Upcoming dividend of US$0.48 per share at 4.1% yield Eligible shareholders must have bought the stock before 31 July 2023. Payment date: 11 August 2023. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of American dividend payers (4.8%). Higher than average of industry peers (3.4%). New Risk • Jul 22
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.5% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Price Target Changed • Jul 21
Price target decreased by 7.8% to US$52.83 Down from US$57.33, the current price target is an average from 6 analysts. New target price is 19% above last closing price of US$44.50. Stock is down 24% over the past year. The company is forecast to post earnings per share of US$5.34 for next year compared to US$5.70 last year. Reported Earnings • Jul 20
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: US$1.15 (down from US$1.40 in 2Q 2022). Revenue: US$144.2m (down 4.9% from 2Q 2022). Net income: US$39.6m (down 18% from 2Q 2022). Profit margin: 28% (down from 32% in 2Q 2022). Revenue missed analyst estimates by 10%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jul 01
Banner Corporation to Report Q2, 2023 Results on Jul 19, 2023 Banner Corporation announced that they will report Q2, 2023 results After-Market on Jul 19, 2023 Price Target Changed • Jun 28
Price target decreased by 7.4% to US$58.50 Down from US$63.17, the current price target is an average from 6 analysts. New target price is 32% above last closing price of US$44.16. Stock is down 22% over the past year. The company is forecast to post earnings per share of US$6.18 for next year compared to US$5.70 last year. Upcoming Dividend • Apr 24
Upcoming dividend of US$0.48 per share at 3.8% yield Eligible shareholders must have bought the stock before 01 May 2023. Payment date: 12 May 2023. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of American dividend payers (4.9%). In line with average of industry peers (3.6%). Reported Earnings • Apr 21
First quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2023 results: EPS: US$1.62 (up from US$1.28 in 1Q 2022). Revenue: US$163.1m (up 13% from 1Q 2022). Net income: US$55.6m (up 26% from 1Q 2022). Profit margin: 34% (up from 30% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) exceeded analyst estimates by 2.0%. Revenue is forecast to grow 3.4% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 17% per year. Price Target Changed • Apr 06
Price target decreased by 7.1% to US$68.00 Down from US$73.17, the current price target is an average from 6 analysts. New target price is 28% above last closing price of US$52.93. Stock is down 5.0% over the past year. The company is forecast to post earnings per share of US$6.49 for next year compared to US$5.70 last year. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$51.92, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Banks industry in the US. Total returns to shareholders of 83% over the past three years. Reported Earnings • Feb 24
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: US$5.70 (down from US$5.81 in FY 2021). Revenue: US$618.1m (down 1.4% from FY 2021). Net income: US$195.4m (down 2.8% from FY 2021). Profit margin: 32% (in line with FY 2021). Net interest margin (NIM): 3.68% (up from 3.39% in FY 2021). Cost-to-income ratio: 58.0% (down from 60.2% in FY 2021). Non-performing loans: 0.23% (down from 0.25% in FY 2021). Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 25
Upcoming dividend of US$0.48 per share at 3.0% yield Eligible shareholders must have bought the stock before 01 February 2023. Payment date: 13 February 2023. Trailing yield: 3.0%. Lower than top quartile of American dividend payers (4.3%). In line with average of industry peers (3.0%). Reported Earnings • Jan 21
Full year 2022 earnings: Revenues exceed analyst expectations Full year 2022 results: Revenue: US$618.1m (down 1.4% from FY 2021). Net income: US$195.4m (down 2.8% from FY 2021). Profit margin: 32% (in line with FY 2021). Revenue exceeded analyst estimates by 1.0%. Revenue is forecast to grow 6.9% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Dec 31
Banner Corporation to Report Q4, 2022 Results on Jan 19, 2023 Banner Corporation announced that they will report Q4, 2022 results After-Market on Jan 19, 2023 
