Banner Well-Positioned For A Challenging 2023 And Priced Accordingly

Jan. 24, 2023 3:43 AM ETBanner Corporation (BANR)BMO, BMO:CA, COLB, USB
Stephen Simpson profile picture
Stephen Simpson


  • Banner posted generally positive operating results for the fourth quarter, including strong net interest income, ongoing net interest margin expansion, and good yields on new loans.
  • Loan demand is slowing, but Banner is still enjoying a tailwind from new loans generated at higher rates and a very low-cost deposit base, and operating leverage should improve.
  • Banner could be a relative standout on pre-provision profit growth in 2023, particularly with NIM likely not peaking until the second half of the year, and management assumptions are reasonable.
  • Banner is a borderline buy, with high quality and likely growth outperformance 2023 offset by a valuation that reflects many of those positives.


KeithBinns/E+ via Getty Images

Bargain-hunters may be a bit frustrated with Banner Corporation (NASDAQ:BANR), the parent company of Banner Bank, as although this bank possess a lot of the characteristics I think investors should prize in 2023, it’s hard

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

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