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 and pays a dividend.


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

3.0%

BANR

2.7%

US Banks

0.4%

US Market


1 Year Return

-1.9%

BANR

2.7%

US Banks

6.9%

US Market

Return vs Industry: BANR underperformed the US Banks industry which returned 2.7% over the past year.

Return vs Market: BANR underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

BANRIndustryMarket
7 Day3.0%2.7%0.4%
30 Day-3.2%0.7%-1.1%
90 Day1.9%3.0%-0.5%
1 Year1.0%-1.9%5.7%2.7%9.3%6.9%
3 Year35.5%23.2%52.1%41.6%45.8%36.4%
5 Year53.8%35.0%69.2%50.7%62.9%45.1%

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 compared to its fair value and its price relative to the market?

12.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BANR ($55.09) is trading above our estimate of fair value ($40.52)

Significantly Undervalued: BANR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BANR is poor value based on its PE Ratio (12.7x) compared to the Banks industry average (12.6x).

PE vs Market: BANR is good value based on its PE Ratio (12.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: BANR is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: BANR is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANR's forecast earnings growth (4% per year) is above the savings rate (2.7%).

Earnings vs Market: BANR's earnings (4% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: BANR's earnings are forecast to grow, but not significantly.

Revenue vs Market: BANR's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BANR's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BANR's Return on Equity is forecast to be low in 3 years time (9.1%).


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

Earnings Trend: BANR's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: BANR's earnings growth over the past year (103.9%) exceeds its 5-year average (21.1% per year).

Earnings vs Industry: BANR earnings growth over the past year (103.9%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: BANR's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: BANR has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BANR's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: BANR has a low level of unsold assets or inventory.

Debt Coverage by Assets: BANR's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: BANR's level of assets compared to its equity is low.

Allowance for Bad Loans: BANR has a sufficient allowance for bad loans.

Low Risk Liabilities: BANR's liabilities are made up of primarily low risk sources of funding.

Loan Level: BANR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BANR's loans are broadly funded by customer deposits.

Level of Bad Loans: BANR has an appropriate level of bad loans (0.21%)


Next Steps

Dividend

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

2.98%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BANR's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BANR's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: BANR's dividend payments have been volatile in the past 10 years.

Growing Dividend: BANR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), BANR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BANR's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Mark Grescovich (55yo)

9.2yrs

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

Compensation vs. Market: Mark's total compensation ($USD2.51M) is below average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: BANR's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

61yo

Average Age

Experienced Board: BANR's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: BANR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$28,00010 Sep 19
John Layman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$56.00
SellUS$110,49309 Sep 19
Cynthia Purcell
EntityIndividual
Role
Other Key Executive
Executive VP
Shares2,039
Max PriceUS$54.19
SellUS$27,58523 Aug 19
John Layman
EntityIndividual
Role
Member of the Board of Directors
Independent 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
Independent 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: 0yrs
    • Compensation: US$1.44m
  • Mark Grescovich (55yo)

    President

    • Tenure: 9.2yrs
    • Compensation: US$2.51m
  • Albert Marshall

    Senior VP & Secretary

    • Tenure: 0yrs
  • Gary Wagers (58yo)

    Executive Vice President of Retail Products & Services of Banner Bank

    • Tenure: 17.8yrs
  • Jim Reed (56yo)

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

    • Tenure: 4yrs
  • M. Quillin (56yo)

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

    • Tenure: 0yrs
  • Keith Western (63yo)

    Executive Vice President of Commercial Banking of South of Banner Bank

    • Tenure: 0yrs
    • Compensation: US$736.80k
  • Peter Conner (53yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$838.99k
  • Kayleen Kohler (46yo)

    Executive Vice President of Human Resources of Banner Bank

    • Tenure: 3.3yrs
  • Craig Miller (67yo)

    Executive VP

    • Tenure: 3.2yrs

Board Members

  • Dave Matson (74yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$119.75k
  • Roberto Herencia (59yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$126.85k
  • Brent Orrico (69yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$160.16k
  • Mark Grescovich (55yo)

    President

    • Tenure: 9.2yrs
    • Compensation: US$2.51m
  • Terry Schwakopf (68yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$87.06k
  • John Layman (60yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$123.25k
  • David Klaue (65yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$108.86k
  • Connie Collingsworth (60yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$120.18k
  • Merline Saintil (42yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$107.39k
  • Kevin Riordan (62yo)

    Director

    • Tenure: 1.5yrs
    • 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$1.905b
  • 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 Analysis2019/10/19 23:32
End of Day Share Price2019/10/18 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.