Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Banner Corporation (BANR)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$90.65 - $177.36$124.95
Multi-Stage$84.91 - $92.82$88.79
Blended Fair Value$106.87
Current Price$65.50
Upside63.16%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.54%17.36%1.921.921.761.662.711.611.711.890.810.49
YoY Growth---0.05%9.31%6.00%-38.75%67.77%-5.41%-9.85%132.51%64.72%27.54%
Dividend Yield--3.01%4.09%3.23%2.83%5.08%4.88%3.07%3.41%1.46%1.18%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)190.52
(-) Cash Dividends Paid (M)66.96
(=) Cash Retained (M)123.56
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)38.1023.8214.29
Cash Retained (M)123.56123.56123.56
(-) Cash Required (M)-38.10-23.82-14.29
(=) Excess Retained (M)85.4699.75109.27
(/) Shares Outstanding (M)34.7534.7534.75
(=) Excess Retained per Share2.462.873.14
LTM Dividend per Share1.931.931.93
(+) Excess Retained per Share2.462.873.14
(=) Adjusted Dividend4.394.805.07
WACC / Discount Rate8.98%8.98%8.98%
Growth Rate3.95%4.95%5.95%
Fair Value$90.65$124.95$177.36
Upside / Downside38.40%90.76%170.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)190.52199.96209.87220.27231.18242.63249.91
Payout Ratio35.15%46.12%57.09%68.06%79.03%90.00%92.50%
Projected Dividends (M)66.9692.22119.81149.91182.70218.37231.17

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.98%8.98%8.98%
Growth Rate3.95%4.95%5.95%
Year 1 PV (M)83.8184.6285.42
Year 2 PV (M)98.96100.87102.80
Year 3 PV (M)112.53115.81119.15
Year 4 PV (M)124.64129.50134.51
Year 5 PV (M)135.39142.03148.92
PV of Terminal Value (M)2,395.112,512.552,634.55
Equity Value (M)2,950.433,085.373,225.36
Shares Outstanding (M)34.7534.7534.75
Fair Value$84.91$88.79$92.82
Upside / Downside29.63%35.56%41.71%

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