NasdaqGS:BANR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued 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

Stable Share Price: BANR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.8%

BANR

9.4%

US Banks

9.9%

US Market


1 Year Return

-38.7%

BANR

-25.1%

US Banks

-11.9%

US Market

Return vs Industry: BANR underperformed the US Banks industry which returned -24.8% over the past year.

Return vs Market: BANR underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

BANRIndustryMarket
7 Day9.8%9.4%9.9%
30 Day-27.2%-26.0%-15.0%
90 Day-41.5%-38.6%-21.5%
1 Year-35.7%-38.7%-22.9%-25.1%-10.0%-11.9%
3 Year-32.9%-40.3%-17.2%-23.3%12.3%5.1%
5 Year-15.8%-27.4%11.6%-1.1%32.5%18.1%

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?

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BANR ($33.21) is trading below our estimate of fair value ($42.19)

Significantly Below Fair Value: BANR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BANR is good value based on its PE Ratio (7.9x) compared to the Banks industry average (8.9x).

PE vs Market: BANR is good value based on its PE Ratio (7.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: BANR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BANR is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Banner forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANR's earnings are forecast to decline over the next 3 years (-6.2% per year).

Earnings vs Market: BANR's earnings are forecast to decline over the next 3 years (-6.2% per year).

High Growth Earnings: BANR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BANR's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BANR's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BANR's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Banner performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BANR has high quality earnings.

Growing Profit Margin: BANR's current net profit margins (27%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: BANR's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: BANR's earnings growth over the past year (7.2%) is below its 5-year average (23.5% per year).

Earnings vs Industry: BANR earnings growth over the past year (7.2%) underperformed the Banks industry 11.2%.


Return on Equity

High ROE: BANR's Return on Equity (9.2%) is considered low.


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 0.9x 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 (0.42%)


Next Steps

Dividend

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

7.95%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateApr 07 2020Dividend Pay DateApr 17 202010 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BANR's dividend (7.95%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: BANR's dividend (7.95%) is in the top 25% of dividend payers in the US market (5.45%)


Stability and Growth of Payments

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 (39.1%), 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 (46.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Mark Grescovich (55yo)

9.58s

Tenure

US$2,271,058

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 ($USD2.27M) is about average for companies of similar size in the US market ($USD3.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Grescovich
President9.58yrsUS$2.27m0.26% $3.0m
Peter Conner
Executive VP1.83yrsUS$823.07kno data
Cynthia Purcell
Executive VPno dataUS$1.08m0.015% $179.7k
Richard Barton
Executive VP & Chief Credit Officer of Banner Bankno dataUS$1.05m0.026% $308.3k
Judith Steiner
Executive VP & Chief Risk Officer of Banner Bank3.42yrsUS$749.60k0.0091% $107.0k
Rich Arnold
Head of Investor Relationsno datano datano data
Craig Miller
Executive VP3.58yrsno data0.0068% $80.1k
Gary Wagers
Executive Vice President of Retail Products & Services of Banner Bank18.17yrsno data0.044% $518.1k
Kayleen Kohler
Executive Vice President of Human Resources of Banner Bank3.75yrsno data0.022% $260.4k
James Reed
Executive Vice President of West Region for Commercial Banking of Banner Bank4.42yrsno data0.029% $341.7k

3.8yrs

Average Tenure

57yo

Average Age

Experienced Management: BANR's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Grescovich
President9.58yrsUS$2.27m0.26% $3.0m
David Matson
Independent Director4yrsUS$112.49k0.0070% $82.7k
Roberto Herencia
Independent Director4yrsUS$119.17k0.011% $126.3k
Brent Orrico
Independent Chairman of the Board1.17yrsUS$186.90k0.17% $2.0m
Terry Schwakopf
Independent Director1.92yrsUS$103.85k0.0025% $29.4k
John Layman
Independent Director12.83yrsUS$113.59k0.043% $509.6k
David Klaue
Independent Director12.83yrsUS$113.57k0.25% $3.0m
Connie Collingsworth
Independent Director6.92yrsUS$120.11k0.013% $147.8k
Merline Saintil
Independent Director3yrsUS$104.32k0.0051% $59.5k
Kevin Riordan
Independent Director1.92yrsUS$126.34k0.0065% $76.1k

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: BANR's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

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$1.173b
  • Shares outstanding: 35.32m
  • 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 provide commercial banking and financial products and services to individuals, businesses, and public sector entities primarily in the United States. It offers deposit products, 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 investment properties and multifamily residential real estate loans; construction, land, and land development loans; residential mortgage loans; commercial business loans; agricultural loans; and consumer loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts. In addition, it engages in the mortgage banking operations through the origination and sale of one-to four-family and multi-family residential loans. Further, the company provides electronic and digital banking services. As of December 31, 2019, it operated 178 branch offices, including 175 Banner Bank branches and three Islanders Bank branches located in Washington, Oregon, California, and Idaho. It also operates 18 Banner Bank loan production offices located in Washington, Oregon, California, Idaho, and Utah. Banner Corporation was founded in 1890 and is headquartered in Walla Walla, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:25
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.