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Banner Corporation (BANR)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$88.65 - $170.93$121.51
Multi-Stage$83.22 - $90.96$87.02
Blended Fair Value$104.26
Current Price$65.50
Upside59.18%
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 Rate9.10%9.10%9.10%
Growth Rate3.95%4.95%5.95%
Fair Value$88.65$121.51$170.93
Upside / Downside35.34%85.52%160.96%

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 Rate9.10%9.10%9.10%
Growth Rate3.95%4.95%5.95%
Year 1 PV (M)83.7284.5385.33
Year 2 PV (M)98.75100.66102.59
Year 3 PV (M)112.18115.45118.78
Year 4 PV (M)124.12128.96133.95
Year 5 PV (M)134.68141.29148.15
PV of Terminal Value (M)2,338.112,452.762,571.85
Equity Value (M)2,891.573,023.643,160.65
Shares Outstanding (M)34.7534.7534.75
Fair Value$83.22$87.02$90.96
Upside / Downside27.05%32.85%38.87%

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