| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 12.0x | 17.3x | Top tier | |
Growth | 50 | 4.9% | 7.1% | Around median | |
Quality | 60 | — | — | Around median | |
Safety | 19 | — | — | Bottom tier | |
Capital Return | 86 | 2.75% | 0.06% | Top tier | |
Momentum | 81 | 11.5% | -1.6% | Top tier | |
Sentiment | 73 | 5 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Banner Corporation, listed on NASDAQ under the ticker BANR, operates in regional banking through Banner Bank, serving individuals, small businesses, and commercial clients in markets including the West Coast and Eastern Washington. Its business centers on funding loans with deposits and earning interest income after funding costs, alongside fees and noninterest income. In quarter 2 of fiscal year 2026, ended 2026-06-30, core deposits represented 89% of total deposits and noninterest-bearing deposits represented 33%, while the loan-to-deposit ratio was 87%.
Net revenue in quarter 2 of fiscal year 2026, ended 2026-06-30, was approximately $153.7 million, up 6.5% from the same quarter a year earlier, while net income was $48.9 million and diluted earnings per share were $1.43. The operating margin was 11.9% versus 12.3% in quarter 2 of fiscal year 2025, a decline of 0.4 percentage points, despite net income improving from $45.5 million in the same comparison period. Diluted shares outstanding totaled 34.1 million, down 1.8% from the same quarter a year earlier, helping earnings per share growth.
Lending expansion in quarter 2 of fiscal year 2026, ended 2026-06-30, focused on commercial and industrial loans, which increased by $152 million, consumer loans, which increased by $62 million, and owner-occupied real estate loans, which increased by $54 million, within an overall increase in loan balances of $287 million from the previous quarter. Construction loans represented 14% of total loans, including residential construction loans representing approximately 5% of the portfolio. This places growth in commercial relationships and deposit accounts at the heart of Banner's model, while real estate and consumer credit quality remain crucial to converting growth into sustainable earnings.
Q2 FY2026
When: 2026-10-21
Testing net revenue growth against the level of 6.5% from the same quarter a year earlier
Testing the operating margin against the level of 11.9%
The median analyst price target in the 2026-10-19 snapshot is $74, within a range of $71 to $76, a low-confidence indicative estimate based on one analyst that reflects growth expectations, with analyst targets inherently tending toward optimism. The industry-multiple valuation is $68, within a range of $57 to $84, and measures Banner's book value when valued like peer companies using a median price-to-book multiple of 1.2 for a sample of 335 companies. The ranges of the two methods overlap, but the median analyst price target exceeds the industry-multiple valuation, consistent with the difference between pricing expected growth and pricing book value relative to peers. On 2026-09-14, Piper Sandler raised its target to $74 from $73, while the analyst consensus remains neutral.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
Banner Corporation generates income from the difference between lending yields and funding costs, alongside fees and noninterest income. In quarter 2 of fiscal year 2026, ended 2026-06-30, core deposits represented 89% of total deposits, and 33% of deposits were noninterest-bearing. The tax-equivalent net interest margin was 4.13% in the same period, making deposit cost management and the loan mix direct influences on profitability.
Net income in quarter 2 of fiscal year 2026, ended 2026-06-30, was approximately $48.9 million versus $54.7 million in the previous quarter. Management attributed the decline to a higher provision for credit losses, lower noninterest income, and increased expenses, despite improved net interest income. Noninterest expenses increased by $5.4 million from the previous quarter, including a nonrecurring write-off of $924 thousand for the previous loan origination system.
Automated analysis for informational purposes only — not investment advice.
Testing the delinquent loan ratio against the level of 0.51%
Construction loans represented 14% of Banner's total loans in quarter 2 of fiscal year 2026, ended 2026-06-30, and residential construction loans accounted for approximately 5% of the total portfolio. Nonperforming loans totaled $54.8 million, with nonperforming assets increasing by $8.9 million because of an apartment project in California. On the 2026-07-23 call, management said its main areas of monitoring included mortgages and home equity lines of credit because of continued interest-rate pressure on consumers.
On the 2026-07-23 call, management said it expected the Bank of the Pacific transaction to close in quarter 3 of fiscal year 2026, viewing it as an addition to the core deposit base and an opportunity to meet larger credit needs among the target bank's customers. It suspended other capital return actions, including share repurchases, until completion of the transaction, while also linking their resumption to market conditions. Meanwhile, it announced a regular dividend of $0.52 per share with its results for quarter 2 of fiscal year 2026, ended 2026-06-30.
The earnings announcement expected on 2026-10-21 represents a test of Banner's ability to maintain net revenue growth and convert it into earnings while controlling expenses. Results for quarter 2 of fiscal year 2026, ended 2026-06-30, provide comparison points including net revenue growth of 6.5% from the same quarter a year earlier, an operating margin of 11.9%, and a delinquent loan ratio of 0.51%. Deposits and FHLB advances also warrant monitoring, because management linked improved funding costs to the return of seasonal deposit inflows.