9. Banner Corp.
of Walla Walla, Wash., closed at $13.32 Monday, down 17% year-to-date. The shares trade for 0.6 times their tangible book value of $23.02, according to SNL Financial.
Based on a quarterly payout of seven cents, the shares have a dividend yield of 2.10%.
The company owes $124 million in TARP money.
Factoring-in $1.55 million in dividends on the preferred shares held by the government and $425 thousand in discount accretion on the preferred shares, Banner swung to a first-quarter profit of $224 thousand, or a penny a share, compared to a year-earlier loss of $6.9 million, or $1.97 a share. The provision for loan losses declined to $8 million in the second quarter, from $16 million a year earlier. Second-quarter earnings were also boosted by a $1.9 million adjustment in the valuation of assets carried at fair value.
The company had $4.2 billion in total assets as of June 30. Nonperforming assets totaled $188.4 million as of June 30, or 4.48% of total assets, improving from 6.02% a year earlier.
FIG partners analyst Timothy Coffey has an "outperform" rating for Banner, with a $21 target, saying on July 22 that "once consistent profitability is sustained, management can think about reversing the $39 million DTA-Deferred Tax Asset valuation allowance," which he estimated "was unlikely until 2013 based on recent results."
The consensus estimate among analysts polled by FactSet is for Banner to earn eight cents a share in 2012.
Five out of six analysts covering Banner Corp. rate the shares a buy, while the remaining analyst has a neutral rating.