NasdaqGS:BANR

Stock Analysis Report

Executive Summary

Banner Corporation operates as the bank holding company for Banner Bank and Islanders Bank that provides commercial banking and financial products and services to individuals, businesses, and public sector entities primarily in the United States.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Banner's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

NasdaqGS:BANR

-1.8%

US Banks

-1.6%

US Market


1 Year Return

-19.0%

NasdaqGS:BANR

-16.1%

US Banks

-3.0%

US Market

BANR underperformed the Banks industry which returned -16.1% over the past year.

BANR underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

BANRIndustryMarket
7 Day-2.9%-1.8%-1.6%
30 Day-8.3%-10.1%-5.7%
90 Day-0.04%-5.0%0.2%
1 Year-16.7%-19.0%-13.7%-16.1%-0.8%-3.0%
3 Year33.4%21.6%37.9%28.5%38.1%29.1%
5 Year52.8%34.6%49.3%33.2%50.8%34.1%

Price Volatility Vs. Market

How volatile is Banner's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banner undervalued based on future cash flows and its price relative to the stock market?

12.18x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Banner's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Banner's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Banner is overvalued based on earnings compared to the US Banks industry average.

Banner is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Banner is poor value based on expected growth next year.


Price Based on Value of Assets

Banner is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Banner expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Banner's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Banner's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Banner's revenue growth is positive but not above the United States of America market average.

Banner's earnings growth is positive but not above the United States of America market average.

Banner's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Banner will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Banner performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Banner has delivered over 20% year on year earnings growth in the past 5 years.

Banner's 1-year earnings growth exceeds its 5-year average (103.9% vs 21.1%)

Banner's earnings growth has exceeded the US Banks industry average in the past year (103.9% vs 33.1%).


Return on Equity

Banner has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Banner used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Banner improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Banner's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Banner has an acceptable proportion of non-loan assets held.

Banner has a sufficient allowance for bad loans.

Banner's liabilities are made up of primarily low risk sources of funding.

Banner's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Banner are broadly funded by customer deposits.

Banner has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Banner's current dividend yield, its reliability and sustainability?

3.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Banner's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Banner's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

What is the CEO of Banner's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Mark Grescovich (55yo)

9.0yrs

Tenure

US$2,513,936

Compensation

Mr. Mark J. Grescovich has been the President of Banner Bank and Banner Corporation since April 6, 2010. Mr. Grescovich has been the Chief Executive Officer of Banner Bank and Banner Corporation since Augu ...


CEO Compensation Analysis

Mark's remuneration is lower than average for companies of similar size in United States of America.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

56yo

Average Age

The tenure for the Banner management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

61yo

Average Age

The tenure for the Banner board of directors is about average.


Insider Trading

More shares have been bought than sold by Banner individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$27,58523 Aug 19
John Layman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$55.18
BuyUS$6,38002 Aug 19
Kevin Riordan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares111
Max PriceUS$57.48
SellUS$26,21402 May 19
Steven Rust
EntityIndividual
Shares491
Max PriceUS$53.40
SellUS$759,82525 Feb 19
Cheryl Bishop
EntityIndividual
Shares11,943
Max PriceUS$63.65
SellUS$86,71211 Dec 18
John Layman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max PriceUS$58.11
SellUS$4,72627 Nov 18
Brent Orrico
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares80
Max PriceUS$59.07
SellUS$34,98819 Nov 18
Peter Connor
EntityIndividual
Shares580
Max PriceUS$60.32

Ownership Breakdown


Management Team

  • Cindy Purcell (62yo)

    Executive VP

    • Tenure: 0.0yrs
    • Compensation: US$1.44m
  • Mark Grescovich (55yo)

    President

    • Tenure: 9.0yrs
    • Compensation: US$2.51m
  • Albert Marshall

    Senior VP & Secretary

    • Tenure: 0.0yrs
  • Gary Wagers (58yo)

    Executive Vice President of Retail Products & Services of Banner Bank

    • Tenure: 17.6yrs
  • Jim Reed (56yo)

    Executive Vice President of West Region for Commercial Banking of Banner Bank

    • Tenure: 3.8yrs
  • M. Quillin (56yo)

    Executive Vice President of East Region for Commercial Banking of Banner Bank

    • Tenure: 0.0yrs
  • Keith Western (63yo)

    Executive Vice President of Commercial Banking of South of Banner Bank

    • Tenure: 0.0yrs
    • Compensation: US$736.80k
  • Peter Conner (53yo)

    Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$838.99k
  • Kayleen Kohler (46yo)

    Executive Vice President of Human Resources of Banner Bank

    • Tenure: 3.2yrs
  • Craig Miller (67yo)

    Executive VP

    • Tenure: 3.0yrs

Board Members

  • Dave Matson (74yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$119.75k
  • Roberto Herencia (59yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$126.85k
  • Brent Orrico (69yo)

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: US$160.16k
  • Mark Grescovich (55yo)

    President

    • Tenure: 9.0yrs
    • Compensation: US$2.51m
  • Terry Schwakopf (68yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$87.06k
  • John Layman (60yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$123.25k
  • David Klaue (65yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$108.86k
  • Connie Collingsworth (60yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$120.18k
  • Merline Saintil (42yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$107.39k
  • Kevin Riordan (62yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$87.06k

Company Information

Banner Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banner Corporation
  • Ticker: BANR
  • Exchange: NasdaqGS
  • Founded: 1890
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.832b
  • Shares outstanding: 34.57m
  • Website: https://www.bannerbank.com

Number of Employees


Location

  • Banner Corporation
  • 10 South First Avenue
  • Walla Walla
  • Washington
  • 99362
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BANRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1995

Biography

Banner Corporation operates as the bank holding company for Banner Bank and Islanders Bank that provides commercial banking and financial products and services to individuals, businesses, and public sector ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:32
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.