Regional banking company Banner Corporation (NASDAQ: BANR) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 2.6% year on year to $167.7 million. Its GAAP profit of $1.49 per share was 2.6% above analysts’ consensus estimates.
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Banner Bank (BANR) Q4 CY2025 Highlights:
- Net Interest Income: $152.4 million vs analyst estimates of $152.1 million (8.5% year-on-year growth, in line)
- Net Interest Margin: 3.9% vs analyst estimates of 4% (4.2 basis point miss)
- Revenue: $167.7 million vs analyst estimates of $173 million (2.6% year-on-year growth, 3.1% miss)
- Efficiency Ratio: 62.1% vs analyst estimates of 59.2% (291.7 basis point miss)
- EPS (GAAP): $1.49 vs analyst estimates of $1.45 (2.6% beat)
- Tangible Book Value per Share: $46.09 vs analyst estimates of $45.80 (13.6% year-on-year growth, 0.6% beat)
- Market Capitalization: $2.19 billion
Company Overview
Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ: BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, Banner Bank’s revenue grew at a sluggish 2.6% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Banner Bank’s recent performance shows its demand has slowed as its annualized revenue growth of 1% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Banner Bank’s revenue grew by 2.6% year on year to $167.7 million, falling short of Wall Street’s estimates.
Net interest income made up 86.5% of the company’s total revenue during the last five years, meaning Banner Bank barely relies on non-interest income to drive its overall growth.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Banner Bank’s TBVPS grew at a mediocre 5% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 11.5% annually over the last two years from $37.09 to $46.09 per share.
Over the next 12 months, Consensus estimates call for Banner Bank’s TBVPS to grow by 8.9% to $50.19, paltry growth rate.
Key Takeaways from Banner Bank’s Q4 Results
It was good to see Banner Bank narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its revenue missed and its EPS slightly exceeded Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $66.03 immediately following the results.
So should you invest in Banner Bank right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
