Remove image DIV if there's no image

Looks as if you should check for a header image to begin with and only process all that markup and stuff if you have one. You may have just edited this check out by mistake.

<?php
// Check to see if the header image has been removed
    $header_image = get_header_image();

    if ( $header_image ) :
?>

{...} ALL THE CODE YOU POSTED PUT IN BETWEEN THIS CHECK

<?php endif; // end check for removed header image ?>

<?php
	// Compatibility with versions of WordPress prior to 3.4.
	if ( function_exists( 'get_custom_header' ) ) {
		// We need to figure out what the minimum width should be for our featured image.
		// This result would be the suggested width if the theme were to implement flexible widths.
		$header_image_width = get_theme_support( 'custom-header', 'width' );
	} else {
		$header_image_width = HEADER_IMAGE_WIDTH;
	}

	// Check if this is a post or page, if it has a thumbnail, and if it's a big one
	if ( is_singular() && current_theme_supports( 'post-thumbnails' ) && has_post_thumbnail( $post->ID ) &&
	( /* $src, $width, $height */ $image = wp_get_attachment_image_src( get_post_thumbnail_id( $post->ID ), 'post-thumbnail' ) ) &&
	$image[1] >= $header_image_width ) {
		// Houston, we have a new header image!
?>
		<!-- #banner-container div was added -->
		<div id="banner-container">
			<?php echo get_the_post_thumbnail( $post->ID );?>
		</div>
		<!-- #banner-container -->
	<?php

	} elseif ( get_header_image() ) {
		// Compatibility with versions of WordPress prior to 3.4.
		if ( function_exists( 'get_custom_header' ) ) {
			$header_image_width  = get_custom_header()->width;
			$header_image_height = get_custom_header()->height;
		} else {
			$header_image_width  = HEADER_IMAGE_WIDTH;
			$header_image_height = HEADER_IMAGE_HEIGHT;
		}
	?>
<!-- #banner-container div was added -->
<div id="banner-container">
	<img src="<?php header_image(); ?>" width="<?php echo $header_image_width; ?>" height="<?php echo $header_image_height; ?>" alt="" />
</div>
<!-- #banner-container -->
<?php	}//End of elseif header image check ?>

Actually after looking at what you where wanting to do closer. This may give you what you are looking for.

Ricoh,

I don’t know how to appreciate your help. I spent the whole day yesterday trying to figure that out. Your code worked like a charm.

Thank you so very much for your help, time and kindness.

Have a wonderful day.

Thanks again.