Banner vs First Merchants

This page compares Banner Corp and First Merchants Corp, examining their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates and positions itself within the sector, providing balanced information for readers. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

BANR

Metric

FRME

$2.19B

Market Cap

$2.18B

9.04%

Potential Profit

15.94%

Buy

Analyst Rating

Buy

Investment Analysis

Banner

BANR

Pros

Banner Corp reported a solid Q3 2025 with EPS of $1.54, surpassing analyst expectations by 10%, indicating robust core earnings growth.
Strategic investments in AI and technology, including advancements in deposit and loan origination systems, support competitive positioning.
Dividend yield of approximately 3.17% with a recent 4% increase in quarterly cash dividend reflects shareholder return focus.

Considerations

Banner's revenue showed a slight miss in Q3 2025 and a moderate decline in 2024 compared to the previous year, with some margin compression risk due to possible rate cuts.
The stock has seen a year-to-date decline of around 8.5%, and a 16.7% drop over the past year, reflecting challenging market sentiment for regional banks.
Potential headwinds include increased competition and regulatory changes impacting regional banks, contributing to share price volatility.

First Merchants

FRME

Pros

First Merchants has strong financial health with a debt-to-equity ratio of about 50.9% and a net profit margin of 35.62%, suggesting efficiency and balanced leverage.
The company benefits from stable revenue generation with nearly $650 million in trailing twelve-month revenue and consistent earnings of $231 million.
High valuation scores and no major detected risks signal investor confidence and operational stability in the Midwest banking market.

Considerations

Future growth prospects are modest with a relatively low score indicating limited near-term expansion potential.
The company exhibits a high level of other expenses relative to revenue, which could pressure profitability if not managed carefully.
Exposure to regional economic conditions in the Midwest could pose cyclicality risks amid fluctuating local business activity.

About The Companies

Banner (BANR)

Banner Corporation is the bank holding company for Banner Bank, a regional commercial bank headquartered in Washington state. Its core business involves providing a broad range of financial products and services to individuals, businesses, and public sector entities across its primary markets in Washington, Oregon, California, Idaho, and Utah. This includes traditional banking activities such as accepting deposits and originating various types of loans. The bank's lending portfolio is diverse, covering commercial business and real estate, agriculture, construction, and consumer loans. Additionally, Banner Corp participates in the secondary loan market by originating and selling residential mortgage loans. This dual focus allows it to serve its communities directly while also engaging with the wider financial markets. Investors may see it as a key player in the banking sector of the Western United States.

First Merchants (FRME)

First Merchants Corporation (ticker FRME) is a regional bank holding company headquartered in Indiana that operates community banks and provides commercial and consumer lending, deposit services and treasury management across several Midwestern states. With a market capitalisation around $2.13 billion, it concentrates on relationship banking for local businesses and households, aiming for steady loan growth and fee income. Key factors for investors include net interest margin trends, credit quality, deposit stability and capital ratios — all of which are sensitive to interest‑rate cycles and local economic conditions. The group has pursued modest expansion through a mix of organic growth and selective acquisitions while maintaining dividend distributions. That said, performance can vary with economic cycles, regulatory change and sector concentration risks. This information is educational and not personalised investment advice; investors should review up‑to‑date financial reports, consider their risk tolerance and consult a financial professional before making decisions.

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Comparison Snapshot