He resigned from the army on January 21, 1865, to return home to Ohio. On January 16, 1866, President Andrew Johnson nominated Banning for appointment to the grade of brevet brigadier general of volunteers, to rank from March 13, 1865, and the U.S. Senate confirmed the appointment on March 12, 1866. On February 21, 1866, President Andrew Johnson nominated Banning for appointment to the grade of brevet major general of volunteers, to rank from March 13, 1865, and the U.S. Senate confirmed the appointment on April 26, 1866.