MeritValue

BANNER CORP

BANRdata completeness 75%17 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'totalDebt'; no data for concept 'pretaxIncome'

The thesis, from the filings

BANNER CORP earns about 11% on equity, comfortably above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $58.42 and $135.6 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$201M1$195.4M2$183.6M3$168.9M3$195.4M3
Operating cash flow$301.6M4$238.1M5$257.2M6$293.2M6$257.5M6
Capital expenditure$10.5M7$14.7M8$14.7M9$13.7M9$9.51M9
Free cash flow (derived)$291.1M4$223.3M5$242.5M6$279.4M6$248M6
Total debt—————
Cash & equivalents$2.13B10$243.1M11$254.5M12$501.9M13$422.6M13
Diluted shares34.9M34.5M34.5M34.6M34.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$561.59
your share of equity
Profit it earned you last year
$56.38
Free cash flow it threw off
$71.54
Debt you’d be carrying
—

10 shares is a claim on $561.59 of net worth that earned you $56.38 and generated $71.54 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
11% avg · 5y
FY21 12%FY22 13%FY23 11%FY24 10%FY25 10%

It earned about 11% on equity against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $58.42 and $135.6 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$135.6
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth3.5%
  • fcfBase$248M
DCF · Growth Exit 5Y
$131.5
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth3.5%
  • fcfBase$248M
Earnings Power Value
$58.42
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$195.4M
  • growthAssumed0.0%
Graham Number
$84.42
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years3.5%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $131.5
The three cases
Bear0.0%$114.42
Base3.5%$131.5
Bull8.5%$159.62

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 3.5%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000946673-24-000008 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0000946673-25-000008 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0000946673-26-000009 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0000946673-24-000008 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-12-31 · accession 0000946673-25-000008 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0000946673-26-000009 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0000946673-24-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2022-12-31 · accession 0000946673-25-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-12-31 · accession 0000946673-26-000009 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2021-12-31 · accession 0000946673-23-000009 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2022-12-31 · accession 0000946673-24-000008 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2023-12-31 · accession 0000946673-25-000008 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2024-12-31 · accession 0000946673-26-000009 (CashAndCashEquivalentsAtCarryingValue)