On May 30, 1994, at 1045 central daylight time, a Cessna 150M, N66262, registered to James L. Chambers of Concordia, Kansas, and operated by an instrument rated commercial pilot, experienced a hard landing while attempting to land with a banner hooked to the right main landing gear. The airplane sustained substantial damage. The pilot reported no injuries. The banner towing 14 CFR Part 91 business flight was operating in visual meteorological conditions. No flight plan was on file. The local flight departed Concordia, Kansas at 1040. The pilot stated that he hooked the banner with the right main landing gear on picking up the banner for a tow. He indicated that when attempting to land he was making a "STOL" approach until the ground crew notified him, by radio, that the banner was on the ground. He stated that his attention was diverted during the approach and that he reduced the power while the airplane was still "15 to 20" feet in the air and with the additional pull of the banner the airplane impacted the terrain nose down.