BANR 8-K

Banner Corp (BANR)

8-K 2025-07-16 For: 2025-07-16

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Added on April 10, 2026

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			BANNER CORPORATION



Date: July 16, 2025			By: /s/ Robert G Butterfield
			Robert G Butterfield
			Executive Vice President, Treasurer and Chief Financial Officer


						CONTACT:			MARK J. GRESCOVICH,
									PRESIDENT & CEO
									ROBERT G. BUTTERFIELD, CFO
									(509) 527-3636

						NEWS RELEASE


RESULTS OF OPERATIONS	Quarters Ended						Six Months Ended
(in thousands except shares and per share data)	Jun 30, 2025		Mar 31, 2025		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
INTEREST INCOME:
Loans receivable	$	175,373	$	168,677	$	161,191	$	344,050	$	317,666
Mortgage-backed securities	15,416		15,744		16,708		31,160		33,642
Securities and cash equivalents	9,470		9,447		11,239		18,917		22,518
Total interest income	200,259		193,868		189,138		394,127		373,826
INTEREST EXPENSE:
Deposits	49,316		48,737		48,850		98,053		93,463
Federal Home Loan Bank (FHLB) advances	3,370		860		3,621		4,230		6,593
Other borrowings	675		694		1,160		1,369		2,335
Subordinated debt	2,499		2,494		2,961		4,993		5,930
Total interest expense	55,860		52,785		56,592		108,645		108,321
Net interest income	144,399		141,083		132,546		285,482		265,505
PROVISION FOR CREDIT LOSSES	4,795		3,139		2,369		7,934		2,889
Net interest income after provision for credit losses	139,604		137,944		130,177		277,548		262,616
NON-INTEREST INCOME:
Deposit fees and other service charges	10,835		10,769		10,590		21,604		21,612
Mortgage banking operations	3,226		3,103		3,006		6,329		5,341
Bank-owned life insurance	2,384		2,575		2,367		4,959		4,604
Miscellaneous	1,221		2,346		1,988		3,567		3,880
	17,666		18,793		17,951		36,459		35,437
Net loss on sale of securities	(3)		—		(562)		(3)		(5,465)

Net change in valuation of financial instruments carried at fair value	88		315		(190)		403		(1,182)


Total non-interest income	17,751		19,108		17,199		36,859		28,790
NON-INTEREST EXPENSE:
Salary and employee benefits	65,486		64,857		63,831		130,343		126,200
Less capitalized loan origination costs	(4,924)		(3,330)		(4,639)		(8,254)		(8,315)
Occupancy and equipment	12,256		12,097		12,128		24,353		24,590
Information and computer data services	8,199		7,628		7,240		15,827		14,560
Payment and card processing services	5,899		5,750		5,691		11,649		11,401
Professional and legal expenses	2,271		2,430		1,201		4,701		2,731
Advertising and marketing	1,087		590		1,198		1,677		2,277
Deposit insurance	2,800		2,797		2,858		5,597		5,667
State and municipal business and use taxes	1,416		1,454		1,394		2,870		2,698
Real estate operations, net	392		(61)		297		331		77
Amortization of core deposit intangibles	455		456		724		911		1,447

Miscellaneous	6,011		6,591		6,205		12,602		12,436



Total non-interest expense	101,348		101,259		98,128		202,607		195,769
Income before provision for income taxes	56,007		55,793		49,248		111,800		95,637
PROVISION FOR INCOME TAXES	10,511		10,658		9,453		21,169		18,283
NET INCOME	$	45,496	$	45,135	$	39,795	$	90,631	$	77,354





Earnings per common share:
Basic	$	1.31	$	1.31	$	1.15	$	2.62	$	2.25
Diluted	$	1.31	$	1.30	$	1.15	$	2.61	$	2.24
Cumulative dividends declared per common share	$	0.48	$	0.48	$	0.48	$	0.96	$	0.96
Weighted average number of common shares outstanding:
Basic	34,627,433		34,509,815		34,488,163		34,568,948		34,439,863
Diluted	34,738,948		34,778,687		34,537,012		34,761,044		34,539,620
Increase in common shares outstanding	94,022		30,140		60,531		124,162		107,383


FINANCIAL CONDITION													Percentage Change
(in thousands except shares and per share data)	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Jun 30, 2024			Prior Qtr		Prior Yr Qtr

ASSETS
Cash and due from banks	$	239,339		$	213,574		$	203,402		$	195,163		12	%	23	%
Interest-bearing deposits	244,009			228,371			298,456			52,295			7	%	367	%
Total cash and cash equivalents	483,348			441,945			501,858			247,458			9	%	95	%

Securities - available for sale, amortized cost $2,372,331, $2,426,395, $2,460,262 and $2,572,544, respectively	2,064,581			2,108,945			2,104,511			2,197,693			(2)	%	(6)	%
Securities - held to maturity, fair value $801,838, $819,261, $825,528 and $852,709, respectively	981,312			991,796			1,001,564			1,023,028			(1)	%	(4)	%
Total securities	3,045,893			3,100,741			3,106,075			3,220,721			(2)	%	(5)	%

FHLB stock	35,151			17,286			22,451			27,311			103	%	29	%

Loans held for sale	37,651			24,536			32,021			13,421			53	%	181	%
Loans receivable	11,690,373			11,438,796			11,354,656			11,143,848			2	%	5	%
Allowance for credit losses – loans	(160,501)			(157,323)			(155,521)			(152,848)			2	%	5	%
Net loans receivable	11,529,872			11,281,473			11,199,135			10,991,000			2	%	5	%
Accrued interest receivable	64,729			63,987			60,885			67,520			1	%	(4)	%
Property and equipment, net	117,175			119,649			124,589			126,465			(2)	%	(7)	%
Goodwill	373,121			373,121			373,121			373,121			—	%	—	%
Other intangibles, net	2,147			2,602			3,058			4,237			(17)	%	(49)	%
Bank-owned life insurance	316,365			313,942			312,549			307,948			1	%	3	%
Operating lease right-of-use assets	38,754			37,134			39,998			39,628			4	%	(2)	%
Other assets	392,963			394,396			424,297			397,364			—	%	(1)	%
Total assets	$	16,437,169		$	16,170,812		$	16,200,037		$	15,816,194		2	%	4	%
LIABILITIES
Deposits:
Non-interest-bearing	$	4,504,491		$	4,571,598		$	4,591,543		$	4,537,803		(1)	%	(1)	%
Interest-bearing transaction and savings accounts	7,545,028			7,517,617			7,423,183			7,016,327			—	%	8	%
Interest-bearing certificates	1,477,772			1,504,050			1,499,672			1,525,133			(2)	%	(3)	%
Total deposits	13,527,291			13,593,265			13,514,398			13,079,263			—	%	3	%
Advances from FHLB	565,000			168,000			290,000			398,000			236	%	42	%
Other borrowings	117,112			130,588			125,257			165,956			(10)	%	(29)	%
Subordinated notes, net	—			80,389			80,278			89,561			(100)	%	(100)	%
Junior subordinated debentures at fair value	73,366			67,711			67,477			66,831			8	%	10	%
Operating lease liabilities	41,696			40,466			43,472			44,056			3	%	(5)	%
Accrued expenses and other liabilities	200,194			210,771			258,070			235,515			(5)	%	(15)	%
Deferred compensation	46,846			46,169			46,759			46,246			1	%	1	%
Total liabilities	14,571,505			14,337,359			14,425,711			14,125,428			2	%	3	%
SHAREHOLDERS’ EQUITY
Common stock	1,309,004			1,308,967			1,307,509			1,302,236			—	%	1	%
Retained earnings	801,082			772,412			744,091			686,079			4	%	17	%
Accumulated other comprehensive loss	(244,422)			(247,926)			(277,274)			(297,549)			(1)	%	(18)	%
Total shareholders’ equity	1,865,664			1,833,453			1,774,326			1,690,766			2	%	10	%
Total liabilities and shareholders’ equity	$	16,437,169		$	16,170,812		$	16,200,037		$	15,816,194		2	%	4	%
Common Shares Issued:


Shares outstanding at end of period	34,583,994			34,489,972			34,459,832			34,455,752
Common shareholders’ equity per share (1)	$	53.95		$	53.16		$	51.49		$	49.07
Common shareholders’ tangible equity per share (1) (2)	$	43.09		$	42.27		$	40.57		$	38.12
Common shareholders’ equity to total assets	11.35		%	11.34		%	10.95		%	10.69		%
Common shareholders’ tangible equity to tangible assets (2)	9.28		%	9.23		%	8.84		%	8.51		%
Consolidated Tier 1 leverage capital ratio	11.29		%	11.22		%	11.05		%	10.80		%



(1)			Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding.
(2)			Common shareholders’ tangible equity and tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

LOANS													Percentage Change
	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Jun 30, 2024			Prior Qtr		Prior Yr Qtr
Commercial real estate (CRE):
Owner-occupied	$	1,125,249		$	1,020,829		$	1,027,426		$	950,922		10	%	18	%
Investment properties	1,625,001			1,598,387			1,623,672			1,536,142			2	%	6	%
Small balance CRE	1,223,477			1,217,458			1,213,792			1,234,302			—	%	(1)	%
Multifamily real estate	860,700			877,716			894,425			717,089			(2)	%	20	%
Construction, land and land development:
Commercial construction	159,222			146,467			122,362			173,296			9	%	(8)	%
Multifamily construction	568,058			618,942			513,706			663,989			(8)	%	(14)	%
One- to four-family construction	551,806			504,265			514,220			490,237			9	%	13	%
Land and land development	417,474			396,009			369,663			352,184			5	%	19	%
Commercial business:
Commercial business	1,318,483			1,283,754			1,318,333			1,298,134			3	%	2	%
Small business scored	1,152,531			1,122,550			1,104,117			1,074,465			3	%	7	%
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland	345,742			334,899			340,280			334,583			3	%	3	%
One- to four-family residential	1,610,133			1,600,283			1,591,260			1,603,266			1	%	—	%
Consumer:
Consumer—home equity revolving lines of credit	639,757			620,483			625,680			611,739			3	%	5	%
Consumer—other	92,740			96,754			95,720			103,500			(4)	%	(10)	%
Total loans receivable	$	11,690,373		$	11,438,796		$	11,354,656		$	11,143,848		2	%	5	%

Loans 30 - 89 days past due and on accrual	$	10,786		$	37,339		$	26,824		$	11,850
Total delinquent loans (including loans on non-accrual), net	$	47,764		$	71,927		$	55,432		$	32,081
Total delinquent loans / Total loans receivable	0.41		%	0.63		%	0.49		%	0.29		%


LOANS BY GEOGRAPHIC LOCATION											Percentage Change
	Jun 30, 2025				Mar 31, 2025		Dec 31, 2024		Jun 30, 2024		Prior Qtr		Prior Yr Qtr
	Amount		Percentage		Amount		Amount		Amount
Washington	$	5,438,285	47	%	$	5,260,906	$	5,245,886	$	5,182,378	3	%	5	%
California	3,010,678		26	%	2,927,835		2,861,435		2,787,190		3	%	8	%
Oregon	2,141,185		17	%	2,122,953		2,113,229		2,072,153		1	%	3	%
Idaho	671,217		6	%	665,625		665,158		641,209		1	%	5	%
Utah	70,474		1	%	88,858		82,459		80,295		(21)	%	(12)	%
Other	358,534		3	%	372,619		386,489		380,623		(4)	%	(6)	%
Total loans receivable	$	11,690,373	100	%	$	11,438,796	$	11,354,656	$	11,143,848	2	%	5	%


LOAN ORIGINATIONS	Quarters Ended
	Jun 30, 2025		Mar 31, 2025		Jun 30, 2024
Commercial real estate	$	216,189	$	37,041	$	102,258
Multifamily real estate	13,065		9,555		2,774
Construction and land	411,210		287,565		546,675

Commercial business	203,656		103,739		167,168
Agricultural business	14,414		12,765		22,255
One-to four-family residential	5,491		5,139		34,498
Consumer	102,600		80,030		120,470
Total loan originations (excluding loans held for sale)	$	966,625	$	535,834	$	996,098


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS	Quarters Ended
	Jun 30, 2025			Mar 31, 2025			Jun 30, 2024
Balance, beginning of period	$	157,323		$	155,521		$	151,140
Provision for credit losses – loans	4,201			4,549			1,953
Recoveries of loans previously charged off:
Commercial real estate	53			57			98


One- to four-family real estate	58			188			17
Commercial business	361			557			324
Agricultural business, including secured by farmland	1			10			195
Consumer	168			119			112
	641			931			746
Loans charged off:
Commercial real estate	—			—			(347)

Construction and land	—			—			—
One- to four-family real estate	—			(13)			—
Commercial business	(892)			(3,301)			(137)
Agricultural business, including secured by farmland	(362)			—			—
Consumer	(410)			(364)			(507)
	(1,664)			(3,678)			(991)
Net charge-offs	(1,023)			(2,747)			(245)
Balance, end of period	$	160,501		$	157,323		$	152,848
Net (charge-offs) recoveries / Average loans receivable	(0.009)		%	(0.024)		%	(0.002)		%


ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Jun 30, 2024

Commercial real estate	$	41,036		$	40,076		$	40,830		$	39,064
Multifamily real estate	9,918			10,109			10,308			8,253
Construction and land	34,124			32,042			29,038			31,597
One- to four-family real estate	20,917			20,752			20,807			20,906
Commercial business	38,591			38,665			38,611			38,835
Agricultural business, including secured by farmland	6,216			5,641			5,727			4,045
Consumer	9,699			10,038			10,200			10,148
Total allowance for credit losses – loans	$	160,501		$	157,323		$	155,521		$	152,848
Allowance for credit losses - loans / Total loans receivable	1.37		%	1.38		%	1.37		%	1.37		%
Allowance for credit losses - loans / Non-performing loans	373		%	404		%	421		%	498		%


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

NON-PERFORMING ASSETS	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Jun 30, 2024
Loans on non-accrual status:
Secured by real estate:
Commercial	$	10		$	2,182		$	2,186		$	2,326

Construction and land	4,369			4,359			3,963			3,999
One- to four-family	15,480			10,448			10,016			8,184
Commercial business	6,647			6,425			7,067			8,694
Agricultural business, including secured by farmland	8,690			10,301			8,485			1,586
Consumer	4,802			4,874			4,835			3,380
	39,998			38,589			36,552			28,169
Loans more than 90 days delinquent, still on accrual:
Secured by real estate:



One- to four-family	2,896			9			369			1,861
Commercial business	—			206			—			—

Consumer	80			155			35			692
	2,976			370			404			2,553
Total non-performing loans	42,974			38,959			36,956			30,722

REO	6,801			3,468			2,367			2,564
Other repossessed assets	—			300			300			—
Total non-performing assets	$	49,775		$	42,727		$	39,623		$	33,286
Total non-performing assets to total assets	0.30		%	0.26		%	0.24		%	0.21		%


LOANS BY CREDIT RISK RATING	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Jun 30, 2024
Pass	$	11,432,456	$	11,207,852	$	11,118,744	$	10,971,850
Special Mention	68,372		33,133		43,451		50,027
Substandard	189,545		197,811		192,461		121,971

Total	$	11,690,373	$	11,438,796	$	11,354,656	$	11,143,848


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

DEPOSIT COMPOSITION									Percentage Change
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Jun 30, 2024		Prior Qtr		Prior Yr Qtr
Non-interest-bearing	$	4,504,491	$	4,571,598	$	4,591,543	$	4,537,803	(1)	%	(1)	%
Interest-bearing checking	2,534,900		2,431,279		2,393,864		2,208,742		4	%	15	%
Regular savings accounts	3,538,372		3,542,005		3,478,423		3,192,036		—	%	11	%
Money market accounts	1,471,756		1,544,333		1,550,896		1,615,549		(5)	%	(9)	%
Total interest-bearing transaction and savings accounts	7,545,028		7,517,617		7,423,183		7,016,327		—	%	8	%
Total core deposits	12,049,519		12,089,215		12,014,726		11,554,130		—	%	4	%
Interest-bearing certificates	1,477,772		1,504,050		1,499,672		1,525,133		(2)	%	(3)	%
Total deposits	$	13,527,291	$	13,593,265	$	13,514,398	$	13,079,263	—	%	3	%


GEOGRAPHIC CONCENTRATION OF DEPOSITS	Jun 30, 2025				Mar 31, 2025		Dec 31, 2024		Jun 30, 2024		Percentage Change
	Amount		Percentage		Amount		Amount		Amount		Prior Qtr		Prior Yr Qtr
Washington	$	7,334,391	55	%	$	7,394,201	$	7,441,413	$	7,171,699	(1)	%	2	%
Oregon	3,029,712		22	%	3,045,078		2,981,327		2,909,838		(1)	%	4	%
California	2,486,514		18	%	2,463,012		2,392,573		2,331,793		1	%	7	%
Idaho	676,674		5	%	690,974		699,085		665,933		(2)	%	2	%

Total deposits	$	13,527,291	100	%	$	13,593,265	$	13,514,398	$	13,079,263	—	%	3	%


INCLUDED IN TOTAL DEPOSITS	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Jun 30, 2024
Public non-interest-bearing accounts	$	151,484	$	146,390	$	165,667	$	149,012
Public interest-bearing transaction & savings accounts	250,350		239,707		248,746		250,136
Public interest-bearing certificates	21,272		24,226		25,423		29,101
Total public deposits	$	423,106	$	410,323	$	439,836	$	428,249
Collateralized public deposits	$	329,416	$	313,445	$	336,376	$	326,524
Total brokered deposits	$	49,977	$	75,321	$	50,346	$	105,309

AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Jun 30, 2024
Number of deposit accounts	451,185		453,808		460,004		460,107
Average account balance per account	$	30	$	30	$	30	$	29


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF JUNE 30, 2025	Actual				Minimum to be categorized as "Adequately Capitalized"				Minimum to be categorized as "Well Capitalized"
	Amount		Ratio		Amount		Ratio		Amount		Ratio

Banner Corporation-consolidated:
Total capital to risk-weighted assets	$	1,984,862	14.51	%	$	1,094,505	8.00	%	$	1,368,131	10.00	%
Tier 1 capital to risk-weighted assets	1,813,814		13.26	%	820,879		6.00	%	820,879		6.00	%
Tier 1 leverage capital to average assets	1,813,814		11.29	%	642,519		4.00	%	n/a		n/a
Common equity tier 1 capital to risk-weighted assets	1,727,314		12.63	%	615,659		4.50	%	n/a		n/a
Banner Bank:
Total capital to risk-weighted assets	1,909,529		13.96	%	1,094,267		8.00	%	1,367,834		10.00	%
Tier 1 capital to risk-weighted assets	1,738,518		12.71	%	820,700		6.00	%	1,094,267		8.00	%
Tier 1 leverage capital to average assets	1,738,518		10.81	%	643,174		4.00	%	803,968		5.00	%
Common equity tier 1 capital to risk-weighted assets	1,738,518		12.71	%	615,525		4.50	%	889,092		6.50	%


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Quarters Ended
	Jun 30, 2025						Mar 31, 2025						Jun 30, 2024
	Average Balance		Interest and Dividends		Yield / Cost (3)		Average Balance		Interest and Dividends		Yield / Cost (3)		Average Balance		Interest and Dividends		Yield / Cost (3)
Interest-earning assets:
Held for sale loans	$	29,936	$	503	6.74	%	$	22,457	$	357	6.45	%	$	11,665	$	206	7.10	%
Mortgage loans	9,565,357		143,909		6.03	%	9,366,213		137,724		5.96	%	9,006,857		129,230		5.77	%
Commercial/agricultural loans	1,924,092		31,196		6.50	%	1,907,212		30,752		6.54	%	1,874,039		31,761		6.82	%
Consumer and other loans	121,142		2,087		6.91	%	121,492		2,092		6.98	%	132,661		2,156		6.54	%
Total loans (1)	11,640,527		177,695		6.12	%	11,417,374		170,925		6.07	%	11,025,222		163,353		5.96	%
Mortgage-backed securities	2,496,972		15,576		2.50	%	2,542,983		15,895		2.53	%	2,672,187		16,850		2.54	%
Other securities	893,062		9,561		4.29	%	902,732		9,687		4.35	%	958,809		11,181		4.69	%

Interest-bearing deposits with banks	75,539		577		3.06	%	65,758		484		2.99	%	58,022		578		4.01	%
FHLB stock	23,077		222		3.86	%	12,804		149		4.72	%	21,080		365		6.96	%
Total investment securities	3,488,650		25,936		2.98	%	3,524,277		26,215		3.02	%	3,710,098		28,974		3.14	%
Total interest-earning assets	15,129,177		203,631		5.40	%	14,941,651		197,140		5.35	%	14,735,320		192,327		5.25	%
Non-interest-earning assets	994,003						1,006,497						926,411
Total assets	$	16,123,180					$	15,948,148					$	15,661,731
Deposits:
Interest-bearing checking accounts	$	2,465,015	9,462		1.54	%	$	2,381,106	8,537		1.45	%	$	2,156,214	7,621		1.42	%
Savings accounts	3,493,965		18,837		2.16	%	3,450,908		18,103		2.13	%	3,147,522		17,200		2.20	%
Money market accounts	1,492,229		7,729		2.08	%	1,555,262		7,860		2.05	%	1,659,327		9,124		2.21	%
Certificates of deposit	1,489,611		13,288		3.58	%	1,531,428		14,237		3.77	%	1,503,597		14,905		3.99	%
Total interest-bearing deposits	8,940,820		49,316		2.21	%	8,918,704		48,737		2.22	%	8,466,660		48,850		2.32	%
Non-interest-bearing deposits	4,480,579		—		—	%	4,526,596		—		—	%	4,634,738		—		—	%
Total deposits	13,421,399		49,316		1.47	%	13,445,300		48,737		1.47	%	13,101,398		48,850		1.50	%
Other interest-bearing liabilities:
FHLB advances	296,671		3,370		4.56	%	75,300		860		4.63	%	259,549		3,621		5.61	%
Other borrowings	122,227		675		2.22	%	134,761		694		2.09	%	175,518		1,160		2.66	%
Junior subordinated debentures and subordinated notes	168,793		2,499		5.94	%	169,678		2,494		5.96	%	179,178		2,961		6.65	%
Total borrowings	587,691		6,544		4.47	%	379,739		4,048		4.32	%	614,245		7,742		5.07	%
Total funding liabilities	14,009,090		55,860		1.60	%	13,825,039		52,785		1.55	%	13,715,643		56,592		1.66	%
Other non-interest-bearing liabilities (2)	274,407						324,031						294,794
Total liabilities	14,283,497						14,149,070						14,010,437
Shareholders’ equity	1,839,683						1,799,078						1,651,294
Total liabilities and shareholders’ equity	$	16,123,180					$	15,948,148					$	15,661,731


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Six Months Ended
	Jun 30, 2025						Jun 30, 2024
	Average Balance		Interest and Dividends		Yield/Cost (3)		Average Balance		Interest and Dividends		Yield/Cost (3)
Interest-earning assets:
Held for sale loans	$	26,217	$	860	6.61	%	$	10,802	$	373	6.94	%
Mortgage loans	9,466,335		281,633		6.00	%	8,949,709		254,514		5.72	%
Commercial/agricultural loans	1,915,699		61,948		6.52	%	1,852,067		62,608		6.80	%
Consumer and other loans	121,316		4,179		6.95	%	133,258		4,352		6.57	%
Total loans (1)	11,529,567		348,620		6.10	%	10,945,836		321,847		5.91	%
Mortgage-backed securities	2,519,851		31,471		2.52	%	2,700,413		33,926		2.53	%
Other securities	897,870		19,248		4.32	%	971,724		22,682		4.69	%

Interest-bearing deposits with banks	70,675		1,061		3.03	%	51,643		1,037		4.04	%
FHLB stock	17,969		371		4.16	%	20,077		574		5.75	%
Total investment securities	3,506,365		52,151		3.00	%	3,743,857		58,219		3.13	%
Total interest-earning assets	15,035,932		400,771		5.38	%	14,689,693		380,066		5.20	%
Non-interest-earning assets	1,000,216						935,068
Total assets	$	16,036,148					$	15,624,761
Deposits:
Interest-bearing checking accounts	$	2,423,292	17,999		1.50	%	$	2,130,228	14,337		1.35	%
Savings accounts	3,472,556		36,940		2.15	%	3,106,985		32,479		2.10	%
Money market accounts	1,523,571		15,589		2.06	%	1,666,743		17,512		2.11	%
Certificates of deposit	1,510,404		27,525		3.67	%	1,502,013		29,135		3.90	%
Total interest-bearing deposits	8,929,823		98,053		2.21	%	8,405,969		93,463		2.24	%
Non-interest-bearing deposits	4,503,461		—		—	%	4,673,330		—		—	%
Total deposits	13,433,284		98,053		1.47	%	13,079,299		93,463		1.44	%
Other interest-bearing liabilities:
FHLB advances	186,597		4,230		4.57	%	236,269		6,593		5.61	%
Other borrowings	128,459		1,369		2.15	%	178,105		2,335		2.64	%
Junior subordinated debentures and subordinated notes	169,233		4,993		5.95	%	180,379		5,930		6.61	%
Total borrowings	484,289		10,592		4.41	%	594,753		14,858		5.02	%
Total funding liabilities	13,917,573		108,645		1.57	%	13,674,052		108,321		1.59	%
Other non-interest-bearing liabilities (2)	299,082						299,103
Total liabilities	14,216,655						13,973,155
Shareholders’ equity	1,819,493						1,651,606
Total liabilities and shareholders’ equity	$	16,036,148					$	15,624,761


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

* Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this earnings release contains certain non-GAAP financial measures. Tangible common shareholders’ equity per share and the ratio of tangible common equity to tangible assets, and references to adjusted revenue, adjusted earnings, the adjusted return on average assets, the adjusted return on average equity and the adjusted efficiency ratio represent non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:

ADJUSTED REVENUE	Quarters Ended						Six Months Ended
	Jun 30, 2025		Mar 31, 2025		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
Net interest income (GAAP)	$	144,399	$	141,083	$	132,546	$	285,482	$	265,505
Non-interest income (GAAP)	17,751		19,108		17,199		36,859		28,790
Total revenue (GAAP)	162,150		160,191		149,745		322,341		294,295
Exclude: Net loss on sale of securities	3		—		562		3		5,465
Net change in valuation of financial instruments carried at fair value	(88)		(315)		190		(403)		1,182


Losses incurred on building and lease exits	919		—		—		919		—
Adjusted revenue (non-GAAP)	$	162,984	$	159,876	$	150,497	$	322,860	$	300,942


ADJUSTED EARNINGS	Quarters Ended									Six Months Ended
	Jun 30, 2025			Mar 31, 2025			Jun 30, 2024			Jun 30, 2025			Jun 30, 2024
Net income (GAAP)	$	45,496		$	45,135		$	39,795		$	90,631		$	77,354
Exclude: Net loss on sale of securities	3			—			562			3			5,465
Net change in valuation of financial instruments carried at fair value	(88)			(315)			190			(403)			1,182


Building and lease exit costs	1,753			—			—			1,753			—
Related net tax (benefit) expense	(401)			76			(180)			(325)			(1,595)
Total adjusted earnings (non-GAAP)	$	46,763		$	44,896		$	40,367		$	91,659		$	82,406

Diluted earnings per share (GAAP)	$	1.31		$	1.30		$	1.15		$	2.61		$	2.24
Diluted adjusted earnings per share (non-GAAP)	$	1.35		$	1.29		$	1.17		$	2.64		$	2.39
Return on average assets	1.13		%	1.15		%	1.02		%	1.14		%	1.00		%
Adjusted return on average assets (1)	1.16		%	1.14		%	1.04		%	1.15		%	1.06		%
Return on average equity	9.92		%	10.17		%	9.69		%	10.04		%	9.42		%
Adjusted return on average equity (2)	10.20		%	10.12		%	9.83		%	10.16		%	10.03		%


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIO	Quarters Ended									Six Months Ended
	Jun 30, 2025			Mar 31, 2025			Jun 30, 2024			Jun 30, 2025			Jun 30, 2024
Non-interest expense (GAAP)	$	101,348		$	101,259		$	98,128		$	202,607		$	195,769


Exclude: CDI amortization	(455)			(456)			(724)			(911)			(1,447)
State/municipal tax expense	(1,416)			(1,454)			(1,394)			(2,870)			(2,698)
REO operations	(392)			61			(297)			(331)			(77)
Building and lease exit costs	(834)			—			—			(834)			—
Adjusted non-interest expense (non-GAAP)	$	98,251		$	99,410		$	95,713		$	197,661		$	191,547

Net interest income (GAAP)	$	144,399		$	141,083		$	132,546		$	285,482		$	265,505
Non-interest income (GAAP)	17,751			19,108			17,199			36,859			28,790
Total revenue (GAAP)	162,150			160,191			149,745			322,341			294,295
Exclude: Net loss on sale of securities	3			—			562			3			5,465
Net change in valuation of financial instruments carried at fair value	(88)			(315)			190			(403)			1,182

Losses incurred on building and lease exits	919			—			—			919			—
Adjusted revenue (non-GAAP)	$	162,984		$	159,876		$	150,497		$	322,860		$	300,942

Efficiency ratio (GAAP)	62.50		%	63.21		%	65.53		%	62.85		%	66.52		%
Adjusted efficiency ratio (non-GAAP) (1)	60.28		%	62.18		%	63.60		%	61.22		%	63.65		%


TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Jun 30, 2024
Shareholders’ equity (GAAP)	$	1,865,664		$	1,833,453		$	1,774,326		$	1,690,766
Exclude goodwill and other intangible assets, net	375,268			375,723			376,179			377,358
Tangible common shareholders’ equity (non-GAAP)	$	1,490,396		$	1,457,730		$	1,398,147		$	1,313,408

Total assets (GAAP)	$	16,437,169		$	16,170,812		$	16,200,037		$	15,816,194
Exclude goodwill and other intangible assets, net	375,268			375,723			376,179			377,358
Total tangible assets (non-GAAP)	$	16,061,901		$	15,795,089		$	15,823,858		$	15,438,836
Common shareholders’ equity to total assets (GAAP)	11.35		%	11.34		%	10.95		%	10.69		%
Tangible common shareholders’ equity to tangible assets (non-GAAP)	9.28		%	9.23		%	8.84		%	8.51		%

TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP)	$	1,865,664		$	1,833,453		$	1,774,326		$	1,690,766
Tangible common shareholders’ equity (non-GAAP)	$	1,490,396		$	1,457,730		$	1,398,147		$	1,313,408
Common shares outstanding at end of period	34,583,994			34,489,972			34,459,832			34,455,752
Common shareholders’ equity (book value) per share (GAAP)	$	53.95		$	53.16		$	51.49		$	49.07
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)	$	43.09		$	42.27		$	40.57		$	38.12