Banner Corp (BANR) WACC Analysis

As of May 27, 2025, Banner Corp (BANR) carries a Weighted Average Cost of Capital (WACC) of 8.5%. WACC reflects the blended rate Banner Corp must pay to both equity and debt holders.

Within that, the cost of equity is 8.0%, the cost of debt is 5.0%, and the effective tax rate is 18.8%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.89 – 0.94
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.13

What It Means for Investors

With a selected WACC of 8.5%, Banner Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.