Banner Bank: SBA business acquisition lending record
Banner Bank (home state WA) approved 135 SBA 7(a) loans to buy existing businesses since FY2018, totaling $106M. The median loan was $500,000. It ranks number 74 of 280 lenders by count and made 0.3% of all SBA acquisition loans nationally.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $170,500 and $1,019,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Washington is the largest state (60% of loans). Loans appear in only 5 states, which points to a regional lender.
- Industry concentration. Plumbing, Heating, and Air-Conditioning Contractors is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 1,434 SBA 7(a) loans of any purpose since FY2020, totaling $372M. 59% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 10% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 6.5% charged off, 83% higher than the 3.5% national average.
Banner Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 10 | $7.2M | $204,150 | |
| FY2019 | 22 | $18.1M | $533,500 | |
| FY2020 | 15 | $9.3M | $350,000 | |
| FY2021 | 15 | $14.2M | $678,000 | |
| FY2022 | 8 | $7.4M | $1,091,000 | |
| FY2023 | 11 | $6.9M | $475,000 | |
| FY2024 | 14 | $13.2M | $582,000 | |
| FY2025 | 26 | $20.5M | $486,500 | |
| FY2026 | 14 | $9.5M | $645,500 |
How often do these acquisition loans fail?
Of the 62 Banner Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 4 have been charged off by the SBA, a rate of 6.5% by loan count and 2.2% by dollars. 39 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Banner Bank is 83% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Washington | 81 | 60.0% | $52.5M | |
| 2 | Oregon | 25 | 18.5% | $21.8M | |
| 3 | California | 24 | 17.8% | $23.1M | |
| 4 | Idaho | 4 | 3.0% | $3.9M | |
| 5 | Wyoming | 1 | 0.7% | $5M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Plumbing, Heating, and Air-Conditioning Contractors | 8 | 5.9% | $7.6M | |
| 2 | Limited-Service Restaurants | 7 | 5.2% | $4.3M | |
| 3 | All Other Specialty Trade Contractors | 6 | 4.4% | $6.7M | |
| 4 | Convenience Retailers | 6 | 4.4% | $2.3M | |
| 5 | Full-Service Restaurants | 5 | 3.7% | $2.8M | |
| 6 | Other Accounting Services | 4 | 3.0% | $3.9M | |
| 7 | Other Building Material Dealers | 3 | 2.2% | $3.7M | |
| 8 | Gasoline Stations with Convenience Stores | 3 | 2.2% | $3.5M | |
| 9 | Car Washes | 3 | 2.2% | $2.1M | |
| 10 | Insurance Agencies and Brokerages | 3 | 2.2% | $1.8M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 2 | 1.5% | $1.3M | |
| 2 | The Grounds Guys | 2 | 1.5% | $795K | |
| 3 | Christensen Inc. | 1 | 0.7% | $1.4M | |
| 4 | Jackson Food Stores | 1 | 0.7% | $800K | |
| 5 | Ace Hardware | 1 | 0.7% | $777K | |
| 6 | Anytime Fitness | 1 | 0.7% | $463K | |
| 7 | The UPS Store | 1 | 0.7% | $280K |
Questions buyers ask
Does Banner Bank make SBA acquisition loans?
Yes. Banner Bank approved 135 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 74 of 280 lenders with 25 or more such loans. The SBA file shows past approvals only; it cannot tell you whether the lender will approve a particular buyer or deal.
How large are Banner Bank's acquisition loans?
The median was $500,000, with the middle half between $170,500 and $1,019,500. The national median is $645,250, so this lender's typical loan is 23% lower than the national figure.
Which states does Banner Bank lend in?
Washington (81), Oregon (25), California (24), Idaho (4), Wyoming (1). Its loans appear in 5 states, so it is closer to a regional lender.
Which industries does Banner Bank finance?
Plumbing, Heating, and Air-Conditioning Contractors (8), Limited-Service Restaurants (7), All Other Specialty Trade Contractors (6), Convenience Retailers (6), Full-Service Restaurants (5). The top industry is 6% of its acquisition loans.
How have Banner Bank's acquisition loans performed?
Of 62 loans approved FY2018 to FY2021: 6.5% charged off, 83% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- Washington acquisitions
- Oregon acquisitions
- California acquisitions
- Plumbing, Heating, and Air-Conditioning Contractors
- Limited-Service Restaurants
- All Other Specialty Trade Contractors
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Banner Bank.