Banner Corp Hits New 52-Week High
Shares of Banner Corporation (BANR) crafted a new 52-week high, touching $39.95 in the first half of the trading session on Nov 18. However, the stock closed the session at $39.81, which reflects a solid year-to-date return of 29.3%. The trading volume for the session was 72,621 shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 8.3%.
Growth Drivers
Impressive third-quarter 2013 results including significant improvement in the credit quality as well as a strong capital position were the primary growth drivers for Banner Corporation.
On Oct 23, Banner Corporation reported its third-quarter 2013 earnings of 60 cents per share, in line with the Zacks Consensus Estimate. However, results were below the prior-year quarter earnings of 79 cents.
A year-over-year increase of 5.5% in net interest income and a substantial rise in deposits and loans were the tailwinds for the quarter. Asset quality exhibited marked improvement with nonperforming assets declining almost 50% year over year. Also, provision for loan losses was nil and net charge off declined 14 bps to 0.01%.
Moreover, the company’s capital ratios remained strong. However, a 13.2% dip in other operating income and an increase of 3.1% in operating expenses acted as headwinds for the quarter.
Estimate Revisions Show Potency
Over the last 30 days, 5 out of 5 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 3.35% to $2.47 per share. For 2014, 2 out of 5 estimates moved north, helping the Zacks Consensus Estimate advance roughly 1% to $2.34 per share.
Some better performing Savings and Loan Institutes include Investors Bancorp Inc. (ISBC), Meridian Interstate Bancorp, Inc. (EBSB) and Mutualfirst Financial Inc. (MFSF). All these companies carry a Zacks Rank #1 (Strong Buy).
Read the Full Research Report on BANR
Read the Full Research Report on MFSF
Read the Full Research Report on EBSB
Read the Full Research Report on ISBC
Zacks Investment Research
