Adjust oven rack to middle position and heat oven to 350°F. Spray loaf pan with vegetable cooking spray.
Place 5 peeled bananas in a medium-sized bowl, cover with plastic wrap. Microwave for 4 minutes, until the bananas are soft and have released liquid from the fruit. Transfer to a fine-mesh strainer over a bowl and allow to drain, occasionally stirring for 10 minutes. There will be about ½ to ¾ cup liquid retained in the bowl.
Toast walnuts in a medium-sized pan over medium heat for about 4 minutes, until fragrant, crunchy and lightly toasted. Roughly chop ½ cup. Chop ¼ cup into finer pieces for topping on bread.
Transfer drained liquid to a medium saute pan and cook over medium-high heat, until reduced to ⅛ cup, about 5 minutes. Remove pan from heat, stir reduced liquid into the cooked bananas, and mash until mostly smooth. Whisk in applesauce, coconut oil, eggs, honey, and vanilla.
Whisk flour, baking soda, and salt together in a large bowl.
Pour banana mixture into dry ingredients and gently fold with a spatula until just combined, with some streaks of flour remaining. Gently fold in ½ cup chopped walnuts. Sprinkle ¼ cup chopped walnuts evenly over the loaf.
Place banana bread pan on a sheet tray lined with parchment paper. Bake until a toothpick inserted in the center of the loaf comes out clean, 50 to 55 minutes. Let bread cool inside the pan for 10 minutes, then place it on a wire rack and let cool for 1 hour before serving.
Notes
This recipe was made in a glass loaf pan. If you are using a darker pan, or larger pan, check for doneness 5-7 minutes earlier than stated in the recipe. Darker pans and pans with the larger surface area will cause the bread to cook slightly faster.
Banana bread can be stored in an air-tight container for up to 2 days.