BANNER : Article on BANR in TheStreet.com

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14 oct. 2010 •21:01

10. Banner Corporation

Company Profile

Shares of Banner Corporation (BANR_) of Walla Walla, Wash. closed at $1.89 Thursday, declining 29% year-to-date.

Income Statement

Banner announced last Wednesday that it expects to post a third-quarter net loss of between $43 million and $45 million, including a $24 million write-down of deferred tax assets. The net loss to common shareholders is expected to range between 38 and 42 cents a share. The company plans to release its third-quarter earnings results on Oct. 20.

Balance Sheet

Banner Corporation had $4.7 billion in total assets as of June 30. Nonperforming assets - including loans past due 90 days or more or in nonaccrual status and repossessed real estate - made up 5.99% of total assets, declining from 6.39% the previous quarter and 6.22% a year earlier. The annualized ratio of net charge-offs to average loans for the second quarter was 1.76%, compared to 1.45% the previous quarter and 3.47% in the second quarter of 2009. Loan loss reserves covered 2.63% as of June 30.

Banner owes $124 million in TARP money. The company raised $171 million through a common offering that was completed in June. As of June 30, Banner's Tier 1 leverage ratio was 13.02% and its total risk-based capital ratio was 17.12%, greatly exceeding the 5% and 10% required for most banks to be considered well-capitalized by regulators.

The regulatory ratios include the TARP money, of courses, but any way you slice it, Banner was strongly capitalized, as its tangible common equity ratio was 9.08% as of June 30 according to SNL Financial. This was the highest tangible common equity ratio among this group of 10 bank holding companies, although that could change after full results for the third quarter are released..

Stock Ratios

The shares trade for just 0.5 times tangible book value according to SNL Financial, so investors have already priced-in the coming third-quarter loss. Analysts don't expect the company to return to profitability until 2012. For that year, the consensus earnings estimate among analysts polled by Thomson Reuters is 10 cents a share.

Analyst Ratings

Out of six analysts covering the shares, three rate Banner Corporation a buy, while the other three recommend analysts hold the shares.

Source:
http://www.thestreet.com/story/10886649/2/10-bank-ma-targets.html