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WALLA WALLA - Banner Corporation (NASDAQ:BANR), parent company of Banner Bank, announced Thursday that its Board of Directors has authorized the repurchase of up to 1,729,199 shares of common stock, representing approximately 5% of its outstanding shares. The company, currently valued at $2.2 billion with a P/E ratio of 12.1, has demonstrated strong financial discipline with 31 consecutive years of dividend payments, according to InvestingPro data.
The $16.44 billion bank holding company plans to conduct the repurchases through open market transactions, with timing and volume dependent on market conditions and other corporate considerations. Trading at $63.47 per share and offering a 3.03% dividend yield, InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US equities.
"We view our stock to be a compelling investment opportunity, and believe that repurchasing shares supports the creation of long-term shareholder value," said Mark J. Grescovich, President and Chief Executive Officer, in a press release statement.
Banner Corporation operates a commercial bank across four Western states through a network of branches offering deposit services and various loan products including business, commercial real estate, construction, residential, agricultural and consumer loans.
The announcement comes as many financial institutions evaluate capital allocation strategies in the current economic environment. Stock repurchase programs typically allow companies to reduce the number of outstanding shares, potentially increasing earnings per share and return on equity metrics.
Banner Corporation’s repurchase authorization represents a standard capital management approach among regional banks seeking to optimize shareholder returns while maintaining adequate capital levels for operational needs.
In other recent news, Banner Corporation reported its second-quarter 2025 earnings, which exceeded earnings per share (EPS) expectations but fell short on revenue. The company posted an EPS of $1.35, surpassing the forecast of $1.30, while its revenue reached $162.2 million, below the anticipated $167.04 million. Following these results, Raymond James raised its price target for Banner to $72 from $65, maintaining an Outperform rating. The firm noted Banner’s solid performance, strong deposit base, and favorable core trends as factors for the target increase. DA Davidson also adjusted its price target for Banner to $72 from $67, while keeping a Neutral rating. The firm highlighted Banner’s strong loan growth, net interest margin stability, and good core expense control as key themes. These developments reflect a mixed but generally positive outlook for Banner Corporation amid a volatile market environment.
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