Latest news with #MarkGrescovich
Yahoo
16-07-2025
- Business
- Yahoo
Banner Bank (NASDAQ:BANR) Misses Q2 Revenue Estimates
Regional banking company Banner Corporation (NASDAQ:BANR) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 8.3% year on year to $162.2 million. Its GAAP profit of $1.31 per share was 0.8% below analysts' consensus estimates. Is now the time to buy Banner Bank? Find out in our full research report. Banner Bank (BANR) Q2 CY2025 Highlights: Net Interest Income: $144.4 million vs analyst estimates of $146.2 million (8.9% year-on-year growth, 1.2% miss) Net Interest Margin: 3.9% vs analyst estimates of 4% (22 basis point year-on-year increase, 3.8 bps miss) Revenue: $162.2 million vs analyst estimates of $163.7 million (8.3% year-on-year growth, 0.9% miss) Efficiency Ratio: 62.5% vs analyst estimates of 61.1% (1.4 percentage point miss) EPS (GAAP): $1.31 vs analyst expectations of $1.32 (0.8% miss) Market Capitalization: $2.3 billion 'Banner's second quarter performance highlights the strength of our super community bank strategy, which focuses on building client relationships, preserving a strong funding base, and delivering exceptional service while sustaining a moderate risk profile,' said Mark Grescovich, President and CEO. Company Overview Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ:BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah. Sales Growth Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, Banner Bank's revenue grew at a tepid 2.5% compounded annual growth rate over the last five years. This was below our standards and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Banner Bank's recent performance shows its demand has slowed as its revenue was flat over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Banner Bank's revenue grew by 8.3% year on year to $162.2 million, missing Wall Street's estimates. Net interest income made up 87.8% of the company's total revenue during the last five years, meaning Banner Bank barely relies on non-interest income to drive its overall growth. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Tangible Book Value Per Share (TBVPS) Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions. This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out. Banner Bank's TBVPS grew at a mediocre 4.3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 12.9% annually over the last two years from $33.83 to $43.09 per share. Over the next 12 months, Consensus estimates call for Banner Bank's TBVPS to grow by 10.5% to $47.61, solid growth rate. Key Takeaways from Banner Bank's Q2 Results We struggled to find many positives in these results as Banner missed Wall Street's estimates across all key metrics. Overall, this was a weaker quarter. The stock remained flat at $66.83 immediately following the results. So do we think Banner Bank is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
16-07-2025
- Business
- Business Wire
Banner Corporation Reports Net Income of $45.5 Million, or $1.31 Per Diluted Share, for Second Quarter 2025;
WALLA WALLA, Wash.--(BUSINESS WIRE)--Banner Corporation (NASDAQ: BANR) ('Banner'), the parent company of Banner Bank, today reported net income of $45.5 million, or $1.31 per diluted share, for the second quarter of 2025, compared to $45.1 million, or $1.30 per diluted share, for the preceding quarter and $39.8 million, or $1.15 per diluted share, for the second quarter of 2024. Net interest income was $144.4 million for the second quarter of 2025, compared to $141.1 million in the preceding quarter and $132.5 million for the second quarter a year ago. The increase in net interest income compared to the preceding quarter reflects an increase in both the yield and average balance of interest-earning assets, partially offset by an increase in funding costs. The increase in net interest income compared to the prior year quarter also reflects an increase in both the yield and average balance of interest-earning assets as well as a decrease in overall funding costs. Second quarter 2025 results included a $4.8 million provision for credit losses, compared to $3.1 million in the preceding quarter and $2.4 million in the second quarter of 2024. Net income was $90.6 million, or $2.61 per diluted share, for the six months ended June 30, 2025, compared to net income of $77.4 million, or $2.24 per diluted share, for the six months ended June 30, 2024. Banner's results for the six months ended June 30, 2025 include a $7.9 million provision for credit losses, a $3,000 net loss on the sale of securities and a $403,000 net increase in the fair value adjustments on financial instruments carried at fair value, compared to a $2.9 million provision for credit losses, a $5.5 million net loss on the sale of securities and a $1.2 million net decrease in the fair value adjustments on financial instruments carried at fair value during the same period in 2024. Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share payable August 15, 2025, to common shareholders of record on August 5, 2025. 'Banner's second quarter performance highlights the strength of our super community bank strategy, which focuses on building client relationships, preserving a strong funding base, and delivering exceptional service while sustaining a moderate risk profile,' said Mark Grescovich, President and CEO. 'Our earnings for the second quarter of 2025 benefited from solid year over year loan growth as well as higher yields on interest-earning assets. This benefit was partially offset by higher funding costs. The strategic investments we have made continue to enhance our operation and position Banner well for long-term success. Banner's credit metrics continue to be strong, our reserve for loan losses remains solid, and our capital base continues to be robust. We also continue to benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter-end. For 134 years, Banner has upheld its core values and remained committed to doing the right thing for our clients, communities, colleagues, company and shareholders, while delivering strength and consistency through all economic cycles and change events.' At June 30, 2025, Banner, on a consolidated basis, had $16.44 billion in assets, $11.53 billion in net loans and $13.53 billion in deposits. Banner operates 135 full-service branch offices, including branches located in eight of the top 20 largest western Metropolitan Statistical Areas by population. Second Quarter 2025 Highlights Net interest margin, on a tax equivalent basis, was 3.92% for both the current and preceding quarters, compared to 3.70% in the second quarter a year ago. Revenue was $162.2 million for the second quarter of 2025, compared to $160.2 million in the preceding quarter and increased 8% from $149.7 million in the second quarter a year ago. Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities, the net change in valuation of financial instruments, and losses incurred on building and lease exits) was $163.0 million in the second quarter of 2025, compared to $159.9 million in the preceding quarter and increased 8% from $150.5 million in the second quarter a year ago. Net interest income was $144.4 million in the second quarter of 2025, compared to $141.1 million in the preceding quarter and increased 9% from $132.5 million in the second quarter a year ago. Mortgage banking operations revenue was $3.2 million for the second quarter of 2025, compared to $3.1 million in the preceding quarter and $3.0 million in the second quarter a year ago. Return on average assets was 1.13%, compared to 1.15% in the preceding quarter and 1.02% in the second quarter a year ago. Net loans receivable increased 2% to $11.53 billion at June 30, 2025, compared to $11.28 billion at March 31, 2025, and increased 5% compared to $10.99 billion at June 30, 2024. Non-performing assets were $49.8 million, or 0.30% of total assets, at June 30, 2025, compared to $42.7 million, or 0.26% of total assets, at March 31, 2025 and $33.3 million, or 0.21% of total assets, at June 30, 2024. The allowance for credit losses - loans was $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025, compared to $157.3 million, or 1.38% of total loans receivable, as of March 31, 2025 and $152.8 million, or 1.37% of total loans receivable, as of June 30, 2024. Total deposits decreased to $13.53 billion at June 30, 2025, compared to $13.59 billion at March 31, 2025, and increased 3% compared to $13.08 billion at June 30, 2024. Core deposits represented 89% of total deposits at June 30, 2025. Dividends paid to shareholders were $0.48 per share in the quarter ended June 30, 2025. Common shareholders' equity per share increased 1% to $53.95 at June 30, 2025, compared to $53.16 at the preceding quarter end, and increased 10% from $49.07 at June 30, 2024. Tangible common shareholders' equity per share* increased 2% to $43.09 at June 30, 2025, compared to $42.27 at the preceding quarter end, and increased 13% from $38.12 at June 30, 2024. *Non-GAAP (Generally Accepted Accounting Principles) financial measure; 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. Income Statement Review Net interest income was $144.4 million in the second quarter of 2025, compared to $141.1 million in the preceding quarter and $132.5 million in the second quarter a year ago. Net interest margin, on a tax equivalent basis, was 3.92% for both the second quarter of 2025 and the preceding quarter, and increased 22 basis points compared to 3.70% in the second quarter a year ago. Net interest margin for the current quarter benefited from higher yields on interest earning assets. Interest income was $200.3 million in the second quarter of 2025, compared to $193.9 million in the preceding quarter and $189.1 million in the second quarter a year ago. Average yields on interest-earning assets increased five basis points to 5.40% for the second quarter of 2025, compared to 5.35% for the preceding quarter, and increased 15 basis points compared to 5.25% in the second quarter a year ago, primarily due to increases in average loan yields. Average loan yields increased five basis points to 6.12%, compared to 6.07% in the preceding quarter, and increased 16 basis points compared to 5.96% in the second quarter a year ago. The increase in average loan yields during the current quarter primarily reflects new loans being originated at higher interest rates and adjustable rate loans repricing higher. Interest expense was $55.9 million in the second quarter of 2025, compared to $52.8 million in the preceding quarter and $56.6 million in the second quarter a year ago. Total deposit costs were 1.47% in both the second quarter of 2025 and the preceding quarter and decreased three basis points compared to 1.50% in the second quarter a year ago. The decrease in deposit costs in the current quarter compared to the same quarter a year ago was primarily due to the interest rate declines in the second half of 2024. The average rate paid on borrowings increased 15 basis points to 4.47% in the second quarter of 2025, compared to 4.32% in the preceding quarter, and decreased compared to 5.07% in the second quarter a year ago, primarily due to the decreases in market interest rates. The total cost of funding liabilities increased five basis points to 1.60% in the second quarter of 2025, compared to 1.55% in the preceding quarter, primarily due to an increase in the average balance of FHLB advances to temporarily fund loan growth, and decreased compared to 1.66% in the second quarter a year ago, primarily due to deposit interest rate declines. A $4.8 million provision for credit losses was recorded in the current quarter (comprised of a $4.2 million provision for credit losses - loans, a $588,000 provision for credit losses - unfunded loan commitments and a $6,000 provision for credit losses - held-to-maturity debt securities). This compares to a $3.1 million provision for credit losses in the prior quarter (comprised of a $4.5 million provision for credit losses - loans, a $1.4 million recapture of provision for credit losses - unfunded loan commitments and a $10,000 recapture of provision for credit losses - held-to-maturity debt securities) and a $2.4 million provision for credit losses in the second quarter a year ago (comprised of a $2.0 million provision for credit losses - loans, a $430,000 provision for credit losses - unfunded loan commitments and a $14,000 recapture of provision for credit losses - held-to-maturity debt securities). The provision for credit losses recorded in the current quarter primarily reflected loan growth, as well as risk rating migration which impacted the overall estimated reserve requirements. Total non-interest income was $17.8 million in the second quarter of 2025, compared to $19.1 million in the preceding quarter and $17.2 million in the second quarter a year ago. The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to a $1.1 million decrease in miscellaneous income, primarily due to losses incurred on building and lease exits during the current quarter. The increase in non-interest income during the current quarter compared to the prior year quarter was primarily due to a $559,000 decrease in the net loss recognized on the sale of securities and a $278,000 increase in the fair value adjustments on financial instruments carried at fair value during the current quarter, partially offset by the decrease in miscellaneous income. Total non-interest income was $36.9 million for the six months ended June 30, 2025, compared to $28.8 million for the same period a year earlier. Mortgage banking operations revenue was $3.2 million in the second quarter of 2025, compared to $3.1 million in the preceding quarter and $3.0 million in the second quarter a year ago. The volume of one- to four-family loans sold during the current quarter decreased compared to the preceding quarter and increased compared to the prior year quarter. Home purchase activity accounted for 85% of one- to four-family mortgage loan originations in the second quarter of 2025, 84% in the preceding quarter and 89% in the second quarter of 2024. Total non-interest expense was $101.3 million in both the second quarter of 2025 and the preceding quarter and was $98.1 million in the second quarter of 2024. Non-interest expense for the current quarter compared to the previous quarter reflects a $629,000 increase in salary and employee benefits, primarily resulting from increased loan commissions and normal salary and wage increases, a $571,000 increase in information and computer data services, primarily due to increases in computer software expenses, and a $497,000 increase in advertising and marketing expenses, primarily due to increases in printed media marketing and community development expenses, offset by a $1.6 million increase in capitalized loan origination costs. In addition, the current quarter included $834,000 of building and lease exit costs. The increase in non-interest expense for the current quarter compared to the same quarter a year ago primarily reflects increases in salary and employee benefits, information and computer data services and professional and legal expenses. For the six months ended June 30, 2025, total non-interest expense was $202.6 million, compared to $195.8 million for the six months ended June 30, 2024. Banner's efficiency ratio was 62.50% for the second quarter of 2025, compared to 63.21% in the preceding quarter and 65.53% in the same quarter a year ago. Banner's adjusted efficiency ratio, a non-GAAP financial measure, was 60.28% for the second quarter of 2025, compared to 62.18% in the preceding quarter and 63.60% in the year ago quarter. See, 'Additional Financial Information - Non-GAAP Financial Measures' on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures. Balance Sheet Review Total assets were $16.44 billion at June 30, 2025, up from $16.17 billion at March 31, 2025 and $15.82 billion at June 30, 2024. The increase compared to the prior quarter was primarily due to increases in total loans receivable, partially offset by decreases in securities. Securities and interest-bearing deposits held at other banks totaled $3.29 billion at June 30, 2025, compared to $3.33 billion at March 31, 2025 and $3.27 billion at June 30, 2024. The average effective duration of the securities portfolio was approximately 6.6 years at June 30, 2025, compared to 6.5 years at June 30, 2024. Total loans receivable were $11.69 billion at June 30, 2025, up from $11.44 billion at March 31, 2025 and $11.14 billion at June 30, 2024. Commercial real estate loans increased 4% to $3.97 billion at June 30, 2025, compared to $3.84 billion at March 31, 2025, and increased 7% compared to $3.72 billion at June 30, 2024. The increase in commercial real estate loans from March 31, 2025 was primarily the result of new loan production and the year over year increase was a combination of both new loan production and the conversion of commercial construction loans to the commercial real estate portfolio upon the completion of the construction phase. Multifamily real estate loans decreased 2% to $860.7 million at June 30, 2025, compared to $877.7 million at March 31, 2025, and increased 20% compared to $717.1 million at June 30, 2024. The increase from June 30, 2024 was primarily the result of the conversion of multifamily construction loans to the multifamily portfolio upon the completion of the construction phase. Commercial business loans increased 3% to $2.47 billion at June 30, 2025, compared to $2.41 billion at March 31, 2025 and increased 4% compared to $2.37 billion at June 30, 2024, primarily due to new loan production. Loans held for sale were $37.7 million at June 30, 2025, compared to $24.5 million at March 31, 2025 and $13.4 million at June 30, 2024. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $104.6 million, compared to $108.1 million in the preceding quarter and $94.9 million in the second quarter a year ago. The increase in loans held for sale compared to the preceding and prior year quarters was primarily the result of increased originations of one- to four- family residential mortgage loans held for sale, with originations outpacing loan sales during the quarter. Total deposits were $13.53 billion at June 30, 2025, compared to $13.59 billion at March 31, 2025 and $13.08 billion a year ago. Core deposits decreased to $12.05 billion at June 30, 2025, compared to $12.09 billion at March 31, 2025, and increased 4% compared to $11.55 billion at June 30, 2024. The increase compared to the prior year quarter primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits were 89% of total deposits at both June 30, 2025 and March 31, 2025, compared to 88% at June 30, 2024. Certificates of deposit decreased to $1.48 billion at June 30, 2025, compared to $1.50 billion at March 31, 2025, and decreased 3% from $1.53 billion a year earlier. The decreases were principally due to decreases in brokered deposits. FHLB advances were $565.0 million at June 30, 2025, compared to $168.0 million at March 31, 2025 and $398.0 million a year ago. The increase in FHLB advances were primarily used to fund loan growth. At June 30, 2025, off-balance sheet liquidity included additional borrowing capacity of $2.74 billion at the FHLB and $1.62 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million. The balance of our outstanding subordinated debt was paid off during the second quarter of 2025. Subordinated notes, net of issuance costs, were $80.4 million at March 31, 2025, and $89.6 million at June 30, 2024. At June 30, 2025, total common shareholders' equity was $1.87 billion or 11.35% of total assets, compared to $1.83 billion or 11.34% of total assets at March 31, 2025, and $1.69 billion or 10.69% of total assets at June 30, 2024. The increase at June 30, 2025 compared to March 31, 2025 was due to a $28.7 million increase in retained earnings resulting from $45.5 million in net income, partially offset by the accrual of $16.8 million of cash dividends during the second quarter of 2025. At June 30, 2025, tangible common shareholders' equity, a non-GAAP financial measure, was $1.49 billion, or 9.28% of tangible assets, compared to $1.46 billion, or 9.23% of tangible assets, at March 31, 2025, and $1.31 billion, or 8.51% of tangible assets, a year ago. 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. Banner and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as 'well-capitalized.' At June 30, 2025, Banner's estimated common equity Tier 1 capital ratio was 12.63%, its estimated Tier 1 leverage capital to average assets ratio was 11.29%, and its estimated total capital to risk-weighted assets ratio was 14.51%. These regulatory capital ratios are estimates, pending completion and filing of Banner's regulatory reports. Credit Quality The allowance for credit losses - loans was $160.5 million, or 1.37% of total loans receivable and 373% of non-performing loans, at June 30, 2025, compared to $157.3 million, or 1.38% of total loans receivable and 404% of non-performing loans, at March 31, 2025, and $152.8 million, or 1.37% of total loans receivable and 498% of non-performing loans, at June 30, 2024. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $12.8 million at June 30, 2025, compared to $12.2 million at March 31, 2025, and $14.0 million at June 30, 2024. Net loan charge-offs totaled $1.0 million in the second quarter of 2025, compared to net loan charge-offs of $2.7 million and $245,000 in the in the preceding quarter and second quarter a year ago, respectively. Non-performing loans were $43.0 million at June 30, 2025, compared to $39.0 million at March 31, 2025, and $30.7 million a year ago. Substandard loans were $189.5 million as of June 30, 2025, compared to $197.8 million as of March 31, 2025 and $122.0 million a year ago. Total non-performing assets were $49.8 million, or 0.30% of total assets, at June 30, 2025, compared to $42.7 million, or 0.26% of total assets, at March 31, 2025, and $33.3 million, or 0.21% of total assets, a year ago. Conference Call Banner will host a conference call on Thursday, July 17, 2025, at 8:00 a.m. PDT, to discuss its second quarter results. Interested investors may listen to the call live at Investment professionals are invited to dial (833) 470-1428 using access code 859937 to participate in the call. A replay of the call will be available at About the Company Banner Corporation is a $16.44 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at Forward-Looking Statements When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the 'SEC'), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases 'may,' 'believe,' 'will,' 'will likely result,' 'are expected to,' 'will continue,' 'is anticipated,' 'estimate,' 'project,' 'plans,' 'potential,' or similar expressions are intended to identify 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made and based only on information then actually known to Banner. Banner does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Forward-looking statements may relate to, among other things, future financial performance, strategic plans or objectives, revenues or earnings projections, and other financial or operational information. These statements are inherently subject to numerous risks and uncertainties, including ongoing market volatility and evolving global conditions, which may cause actual results to differ materially from those expressed or implied. These factors include, but are not limited to: (1) adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of labor shortages, elevated inflation, recessionary pressures, or slowing economic growth; (2) changes in interest rate levels and the duration of such changes, including actions by the Federal Reserve, which could materially affect our net interest margin, funding costs, asset values, access to capital and liquidity; (3) the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; (4) geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy prices, or economic activity in specific industry sectors, including, but not limited to, agriculture-based lending; (5) the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; (6) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (7) expectations regarding key growth initiatives and strategic priorities; (8) credit risks from lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses, which could necessitate additional provisions for credit losses, resulting both from loans originated and loans acquired from other financial institutions; (9) results of examinations by regulatory authorities, which could result in the imposition of penalties, required changes to our business practices, or additional reserves; (10) competitive pressures among depository and non-depository institutions affecting pricing, market share or product offerings; (11) fluctuations in real estate values; (12) the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; (13) vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; (14) market volatility or deterioration in capital markets affecting liquidity, valuations, or investor confidence; (15) the costs, effects and outcomes of litigation or other legal proceedings involving the Company; (16) legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; (17) climate-related risks and natural disasters, which may affect loan collateral, operations, or compliance obligations; (18) changes in accounting principles, policies or guidelines; (19) the impact of future acquisitions or business combinations, including related goodwill impairment risks and integration challenges; (20) effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; (21) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (22) other risks detailed from time to time in Banner's other reports filed with and furnished to the Securities and Exchange Commission including Banner's Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. 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 % Expand (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. Expand ADDITIONAL FINANCIAL INFORMATION (dollars in thousands) 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 % Expand 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 % Expand ADDITIONAL FINANCIAL INFORMATION (dollars in thousands) 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 Expand 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 )% Expand 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 % Expand CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS Quarters Ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Balance, beginning of period $ 12,162 $ 13,562 $ 13,597 Provision (recapture) for credit losses - unfunded loan commitments 588 (1,400 ) 430 Balance, end of period $ 12,750 $ 12,162 $ 14,027 Expand 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 % Expand 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 Expand 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 % Expand 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 % Expand 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 Expand ADDITIONAL FINANCIAL INFORMATION (dollars in thousands) 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 % Expand These regulatory capital ratios are estimates, pending completion and filing of Banner's regulatory reports. (1) Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. (2) Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. (3) Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $2.3 million for the quarter ended June 30, 2025 and $2.2 million for both the quarters ended March 31, 2025 and June 30, 2024. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for the quarter ended June 30, 2025 and $1.0 million for both the quarters ended March 31, 2025 and June 30, 2024. (4) 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. Expand ADDITIONAL FINANCIAL INFORMATION (dollars in thousands) (rates / ratios annualized) ANALYSIS OF NET INTEREST SPREAD Six Months Ended Jun 30, 2025 Jun 30, 2024 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 Net interest income/rate spread (tax equivalent) $ 292,126 3.81 % $ 271,745 3.61 % Net interest margin (tax equivalent) 3.92 % 3.72 % Reconciliation to reported net interest income: Adjustments for taxable equivalent basis (6,644 ) (6,240 ) Net interest income and margin, as reported $ 285,482 3.83 % $ 265,505 3.63 % Additional Key Financial Ratios: Return on average assets 1.14 % 1.00 % Adjusted return on average assets (4) 1.15 % 1.06 % Return on average equity 10.04 % 9.42 % Adjusted return on average equity (4) 10.16 % 10.03 % Average equity/average assets 11.35 % 10.57 % Average interest-earning assets/average interest-bearing liabilities 159.72 % 163.21 % Average interest-earning assets/average funding liabilities 108.04 % 107.43 % Non-interest income/average assets 0.46 % 0.37 % Non-interest expense/average assets 2.55 % 2.52 % Efficiency ratio 62.85 % 66.52 % Adjusted efficiency ratio (4) 61.22 % 63.65 % Expand (1) Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. (2) Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. (3) Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $4.6 million and $4.2 million for the six months ended June 30, 2025 and 2024, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.1 million for both the six months ended June 30, 2025 and 2024. (4) 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. Expand 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 Expand 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 % Expand (1) Adjusted earnings (non-GAAP) divided by average assets. (2) Adjusted earnings (non-GAAP) divided by average equity. Expand 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 % Expand (1) Adjusted non-interest expense (non-GAAP) divided by adjusted revenue. Expand 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 Expand
Yahoo
09-07-2025
- Business
- Yahoo
KBRA Affirms Ratings for Banner Corporation
WALLA WALLA, Wash., July 09, 2025--(BUSINESS WIRE)--Banner Corporation (NASDAQ GSM: BANR) ("Banner"), the parent company of Banner Bank, today announced that Kroll Bond Rating Agency, LLC ("KBRA") affirmed the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Banner Corporation. In addition, KBRA affirmed the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for the company's principal subsidiary, Banner Bank. The agency also noted they again determined the outlook for all of Banner's long-term ratings is Stable. "We are pleased to receive KBRA's affirmation of our investment grade rating," said Mark Grescovich, President and CEO. "This rating reinforces our position as a reliable source of capital for our clients across all economic cycles and change events. It also reflects our financial strength and stability, validating our consistent performance and sound credit practices." According to KBRA, the ratings are supported by Banner's highly experienced management team executing a "higher touch" commercially oriented banking model over a reasonably broad geographic footprint. The agency also noted that our solid track record of earnings is enhanced by low cost, peer-leading funding profile, which includes a core deposit base that reflects favorable characteristics in terms of cost, geographic diversification, and composition. About Banner Corporation Banner Corporation is a $16.2 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank online at About KBRA Kroll Bond Rating Agency, LLC is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Forward-Looking Statements This press release contains statements that the Company believes are "forward-looking statements." These statements relate to the Company's financial condition, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, and actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, those identified in our risk factors contained in Banner Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Such forward-looking statements speak only as of the date of this release. Banner Corporation expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Company's expectations of results or any change in events. View source version on Contacts MARK J. GRESCOVICH,PRESIDENT & CEOROBERT G. BUTTERFIELD,EXECUTIVE VP & CFO(509) 527-3636
Business Wire
30-06-2025
- Business
- Business Wire
Banner Bank Releases 2024 Corporate Responsibility Report
WALLA WALLA, Wash.--(BUSINESS WIRE)--Today, Banner Bank released its 2024 Corporate Responsibility Report. The report identifies ongoing practices and recent accomplishments creating long-term value and driving progress while staying deeply connected to the needs of all the company's stakeholders. It includes examples in the areas of environmental risk and impact management, social responsibility and governance, including: Increasing our focus on continuous improvement, which assists us in identifying new opportunities that benefit our corporate responsibility strategy as well as our overall organization. As we move to the next stage of this strategy, we are building on a clearer understanding of our climate impact, the tools at our disposal, and how we can maintain a sustainable business strategy in the years ahead. Identifying new ways to engage our employees through the launch of a leadership development program and more focused support of internal mobility and career advancement. Tangible impacts on our business include a highly engaged workforce and low voluntary turnover rates. Financing additional projects that reduce housing insecurity as well as provide vital capital to businesses in the form of loans. This helps drive the economic engine of our local and regional economies, which is especially important during periods of change and market turbulence. Making strides integrating climate risk into our broader risk management framework. This is not just a recognition that the risk profile of our business is shifting— it's fundamental to our ability to make responsible, long-term decisions and remain a trusted part of our communities. Continuing to evolve our strong governance structure, including refining our Generative AI policy to better facilitate innovation in day-to-day work while maintaining our security and risk management standards. Additionally, the 2024 Corporate Responsibility Report includes disclosures prepared using the Sustainability Accounting Standards Board (SASB) standards for the financial sector that we determined to be most relevant to our business, as well as a link to our full SASB report. Our Global Reporting Initiative (GRI) disclosures are also included in this year's report. 'For 135 years, we've demonstrated our company can and does evolve to meet the changing needs of our clients and communities while staying true to our core values,' said Mark Grescovich, President and CEO of Banner Corporation and Banner Bank. 'We believe our achievements outlined in this report demonstrate that doing the right thing remains good business and creates long-term value for all our stakeholders.' To view the full report, please visit
Yahoo
16-06-2025
- Business
- Yahoo
Banner Bank Earns 2025 ‘Great Place to Work' Certification
WALLA WALLA, Wash., June 16, 2025--(BUSINESS WIRE)--The Banner Bank leadership team is pleased to share the Bank was just certified by Great Place to Work®, a global research firm specializing in workplace culture and employee experience. The coveted worldwide certification is based entirely on what employees report about their workplace experience—specifically, how consistently they experience a high-trust work environment. "Being certified as a Great Place to Work is especially meaningful because it is based on the feedback of our employees who are the foundation of our company," said Mark Grescovich, President and CEO. "This prestigious recognition reflects our commitment to creating and sustaining an exceptional workplace culture." The opinions of Banner employees were gathered through an extensive survey hosted by the research firm earlier this year. The survey results showed 86 percent of employees rank Banner as a great place to work—almost 20 percent higher than the average U.S. company. Great Place to Work Certification™ is the most definitive "employer-of-choice" recognition companies aspire to achieve. Every year more than 21,000 companies across 170 countries apply to get certified. We are incredibly honored to receive this recognition, and we owe it to our amazing employees," said Kayleen Kohler, Chief Human Resources and Diversity Officer. "Their passion, dedication and feedback helped us earn this certification. We appreciate the effort of our leaders at every level who consistently create the right environment for our employees to thrive." According to Great Place to Work research, employees at certified workplaces are 93 percent more likely to look forward to coming to work, are twice as likely to be paid fairly, earn a fair share of the company's profits and receive a promotion. Job seekers are also 4.5 times more likely to find a great boss at a certified workplace. Visit the Best Places to Work website to learn more about Banner Bank's certification. About Banner Bank Banner Bank is a Washington-chartered commercial bank serving consumer and business clients in Washington, Oregon, California and Idaho. With more than $16.2 billion in assets, Banner Bank is part of Banner Corporation (NASDAQ: BANR). Visit Banner Bank at About Great Place to Work® As the global authority on workplace culture, Great Place to Work® brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Their proprietary platform and For All™ Model helps companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place to Work Certified™ or receiving recognition on a coveted Best Workplaces™ List. View source version on Contacts Kelly McPhee, Senior Vice President, Communications, (509) 991-0575 or Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
