Banner (BANR) Stock Forecast & Price Target

Banner Corp demonstrated strong financial performance, with non-interest income rising by 16.8% quarter-over-quarter to $20.7 million, significantly exceeding expectations. Furthermore, the bank experienced a notable increase in net interest income of 3.9% to $150 million, driven by robust core deposit growth of 14% year-over-year, which reached $12.5 billion. This solid growth in core deposits facilitated an impressive 82% reduction in FHLB advances, underscoring the institution's stable funding position and operational efficiency.

Banner Corp is experiencing challenges that contribute to a negative outlook, primarily due to declining loan originations and weak production metrics, as evidenced by a modest loan growth of only 0.4% in the third quarter of 2025. Despite a decrease in non-performing assets to 0.38%, the bank's reliance on mortgage banking operations is concerning given the potential drop in noninterest income amid a rising interest rate environment. Additionally, the forecast of a modest decline in the efficiency ratio and potential economic deterioration in the Pacific Northwest further complicate the financial landscape for the bank.