1) BANR has Tier 1 risk-based capital of 9.8% (vs. regulatory well-capitalized level of 6%) . see link
2) BANR has Total risk-based capital of 12.9% (vs. regulatory well-capitalized level of 10%) . see link
3) In Q4, Banner paid a $1.6M dividend on the $124M of senior preferred stock it issued to the U.S. Treasury. Most of the small banks stopped to pay dividend and interest on their loan from TARP
4) Non-performing assets (NAP) are declining in last 2 years . NAP totaled $254M at December 31, 2010, compared to $278M in the preceding quarter and $295M a year earlier. At year-end, Banner’s NAP were 5.77% of total assets, compared to 6.05% at the end of the preceding quarter and 6.27% a year ago.
5) Too many investors are pessimistic on BANR and selling constantly. BANR crashed 82% since April 2010 and is extremely oversold.
6 ) Insiders and institutional own 72% of BANR shares. This is huge confidence in BANR future.
7 ) BANR is paying divided which is a great confidence to its capitalization
8) Insiders and executives bought 290K shares from their own money in last 6 months. This is huge confidence in BANR future.
9) Housing in Washington, Oregon and Idaho slowly improving. Recently there are 10 articles discussing slow recovery in real estate of Washington, Oregon and Idaho
10) BANR is the largest independent bank in Washington with 100 branches in Wa , Oregon and Idaho , yet its market capital is tiny $270M. Any significant improvement in the economy will push market cap above $500M