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0000946673false00009466732025-07-162025-07-16

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 16, 2025

Banner Corporation
(Exact name of registrant as specified in its charter)

Washington
    000-26584
  91-1691604
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
10 S. First Avenue, Walla Walla, Washington 99362
(Address of principal executive offices) (Zip Code)

Registrant's telephone number (including area code) (509) 527-3636

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01 per share BANR The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition.*

On July 16, 2025, Banner Corporation issued its earnings release for the quarter ended June 30, 2025. A copy of the earnings release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.*

Banner Corporation intends to review the investor presentation attached as Exhibit 99.2 to this Current Report on Form 8-K in conjunction with its earnings release conference call on July 17, 2025, and from time to time in presentations to investors and other stakeholders.

Item 8.01 Other Events.

On July 16, 2025, Banner Corporation announced its Board of Directors declared a regular quarterly cash dividend on Banner Corporation common stock of $0.48 per share, payable on August 15, 2025 to stockholders of record as of the close of business on August 5, 2025.

Item 9.01 Financial Statements and Exhibits.*

(d)    Exhibits

99.1    Press Release of Banner Corporation dated July 16, 2025.
99.2    Banner Corporation Investor Materials
104     Cover Page Interactive Data File (embedded within the Inline XBRL document)


*    The information furnished under Item 2.02, Item 7.01 and Item 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of Banner Corporation under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




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



EX-99.1 2 banr-06302025xex991earning.htm EX-99.1 Document

Exhibit 99.1

irgrouplogoa09a.jpg
imagea.jpg
 CONTACT: MARK J. GRESCOVICH,
PRESIDENT & CEO
ROBERT G. BUTTERFIELD, CFO
(509) 527-3636
NEWS RELEASE

Banner Corporation Reports Net Income of $45.5 Million, or $1.31 Per Diluted Share, for Second Quarter 2025;
Declares Quarterly Cash Dividend of $0.48 Per Share

Walla Walla, WA - July 16, 2025 - Banner Corporation (NASDAQ GSM: 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.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 2
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.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 3
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.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 4
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 www.bannerbank.com. 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 www.bannerbank.com.
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 www.bannerbank.com.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 5
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.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 6
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 

BANR - Second Quarter 2025 Results
July 16, 2025
Page 7
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.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 8
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  %

BANR - Second Quarter 2025 Results
July 16, 2025
Page 9
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 



BANR - Second Quarter 2025 Results
July 16, 2025
Page 10
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  %

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 


BANR - Second Quarter 2025 Results
July 16, 2025
Page 11
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 


BANR - Second Quarter 2025 Results
July 16, 2025
Page 12

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 




BANR - Second Quarter 2025 Results
July 16, 2025
Page 13
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  %

These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 14
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     
Net interest income/rate spread (tax equivalent) $ 147,771  3.80  % $ 144,355  3.80  % $ 135,735  3.59  %
Net interest margin (tax equivalent) 3.92  % 3.92  % 3.70  %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis (3,372) (3,272) (3,189)
Net interest income and margin, as reported $ 144,399  3.83  % $ 141,083  3.83  % $ 132,546  3.62  %
Additional Key Financial Ratios:
Return on average assets 1.13  % 1.15  % 1.02  %
Adjusted return on average assets (4)
 1.16  % 1.14  % 1.04  %
Return on average equity 9.92  % 10.17  % 9.69  %
Adjusted return on average equity (4)
 10.20  % 10.12  % 9.83  %
Average equity/average assets 11.41  % 11.28  % 10.54  %
Average interest-earning assets/average interest-bearing liabilities 158.78  % 160.69  % 162.27  %
Average interest-earning assets/average funding liabilities 108.00  % 108.08  % 107.43  %
Non-interest income/average assets 0.44  % 0.49  % 0.44  %
Non-interest expense/average assets 2.52  % 2.57  % 2.52  %
Efficiency ratio 62.50  % 63.21  % 65.53  %
Adjusted efficiency ratio (4)
 60.28  % 62.18  % 63.60  %

(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.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 15
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 
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  %

(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.


BANR - Second Quarter 2025 Results
July 16, 2025
Page 16
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  %

(1)Adjusted earnings (non-GAAP) divided by average assets.
(2)Adjusted earnings (non-GAAP) divided by average equity.


BANR - Second Quarter 2025 Results
July 16, 2025
Page 17
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  %

(1)Adjusted non-interest expense (non-GAAP) divided by adjusted revenue.

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 

EX-99.2 3 a2025-q2presentation.htm EX-99.2 a2025-q2presentation
S e c o n d Q u a r t e r 2 0 2 5 Since 1890

 
Disclosure Statement 1 This presentation includes forward-looking statements. These statements include descriptions of management’s plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner’s general outlook for economic and other conditions. Additional forward-looking statements may be made in the question-and-answer period following the presentation. These forward-looking statements are subject to several risks and uncertainties and actual results may differ materially from those discussed today. Information on the risk factors that could cause actual results to differ are available from the earnings press release that was released July 16, 2025 as well as the Form 10-K for the year ended December 31, 2024 and Forms 10-Q filed quarterly thereafter. Forward-looking statements are effective only as of the date they are made, and Banner assumes no obligation to update information concerning its expectations.

 
Second quarter 2025 highlights 2 • Net income of $45.5 million, compared to $45.1 million for the prior quarter • HFI Loan growth of $547 million year-over-year (5%); growth of $252 million quarter-over quarter (9% annualized) • Total loan originations (excluding HFS) were $967 million • Net interest margin (tax equivalent) was steady at 3.92% • Efficiency ratio (GAAP) decreased 71 basis points to 62.50%; adjusted, non- GAAP efficiency ratio decreased 190 basis points to 60.28% • Return on average assets of 1.13%, and return on average equity of 9.92%, compared to 1.15% and 10.17%, respectively, for the prior quarter • $4.8 million provision for credit losses driven by loan growth and risk rating downgrades; Allowance for credit losses – loans was 1.37% of total loans • Non-performing assets remained low at 0.30% of total assets, up 4 basis points from last quarter • Kroll Bond Rating Agency, LLC 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, and 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 Banner Bank • Announced dividend of $0.48 per share to be paid in August 2025

 
Building value at Banner Building value for stakeholders … by focusing on core banking competency … that is sustainable through change events … and scalable with acquisition growth Banner Corporation Assets $16.4B Deposits $13.5B Loans $11.7B Offices 135 Employees 1,890 3 Acquisition History 2019 Q4 2018 Q4 2015 Q4 2015 Q1 2014 Q2 AltaPacific Bank Skagit Bank AmericanWest Bank Siuslaw Bank SW Oregon Branches Assets $0.4B $0.9B $4.5B $0.4B $0.2B Deposits $0.3B $0.8B $3.6B $0.3B $0.2B Loans $0.3B $0.6B $3.0B $0.2B $0.1B Offices 6 11 98 10 6

 
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Growing revenue Take advantage of ideal geography Offer super community bank value proposition Guard and improve reputation Grow market share 4

 
Growing revenue … in a good place since 1890 5 Source: U.S. Census Bureau Moody’s Analytics Forecasted (June 2023) Population Estimate (millions) 2020 2030 Growth Washington 7.7 8.4 9%* Oregon 4.2 4.5 5% Idaho 1.8 2.2 20%* California 39.5 39.5 0% Region 53.3 54.6 2% United States 331.4 344.6 4% * Among the fastest growing in the country

 
Growing revenue … in an ideal geography Powerful and diverse economic drivers From Banner’s Pacific Northwest base to … Technology Manufacturing Consumer Logistics Natural Resources Agriculture Traditional, specialty crops, orchards, wineries, … California From Apple to from Silicon Valley to the Central Valley … the world’s 6th largest economy 6

 
Growing revenue Our super community bank value proposition Broad product offerings serving middle market, small business and consumer client base Decision-making as close to client as possible Delivery channels aligned to maximize tactical execution of strategic plan Community investment 7

 
Growing revenue Guard and protect our reputation Best in Customer Satisfaction for Retail Banking in the Northwest J.D. Power *for J.D. Power 2025 Award Information, visit jdpower.com/awards Most Trustworthy Companies in America Newsweek 2023, 2024 and 2025 World’s Most Trustworthy Companies Newsweek 2023 & 2024 (2025 selection TBD) America’s Best Regional Banks Newsweek 2024 & 2025 Outstanding CRA Rating FDIC 2025 and 2021 (two consecutive examination cycles) 5-Star rating™ (highest category) BauerFinancial; 11+ years 100 Best Banks in America Forbes, 9 consecutive years (2017-2025) Top 50 U.S. Public Banks (assets of $10B+) S&P Global Market Intelligence 2021-2024 Great Place to Work certification (May 2025-2026) 8

 
$ M ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0 5 10 15 20 25 30 0% 4% 8% 12% 16% 20% 24% 28% $ M ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0 25 50 75 100 125 150 175 200 Growing revenue Deposit Fees as % of Core Revenue 1 Other Fees Mortgage Banking Deposit Fees 9 1. Excludes net gain/loss on sale of securities, change in valuation of financial instruments carried at fair value and losses incurred on building and leases exits. Core revenue1 Quarter Ending Quarter Last 12 Months Amount Amount 06/30/25 $163M $637M 12/31/09 $45M $177M Noninterest income1 Quarter Ending Quarter Last 12 Months Amount Amount 06/30/25 $18.6M $75.0M 12/31/09 $6.6M $31.1M Other Income Net Interest Income

 
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Protecting net interest margin Improve earning asset mix Improve funding mix Reduce deposit costs Maintain loan-to-deposit ratio 10

 
Protecting net interest margin $ Millions Avg Bal Cost (in bps) Non-Interest 4,481 0 Interest Bearing 7,450 194 CDs 1,490 358 Subtotal Deposits 13,421 147 FHLB & Other 588 447 Total 14,009 160 11 32% 53% 11% 4% 77% 23% 34% 30% 36% Non-Interest Bearing Certificates of Deposit Interest Bearing and Savings Securities & Int-bearing Deposits Loans Fixed: 4.83% Yield Floating: 7.63% Yield Low Cost Funding Mix 6/30/2025 Adjustable: 5.35% Yield Earning Asset Mix 6/30/2025 Loan Repricing Structure 6/30/2025 $ Millions Avg Bal Yield (in bps) Loans 11,641 612 Securities & Int- bearing Deposits 3,489 298 Total 15,130 540 66% of the loan portfolio is floating/adjustable 71% of the floating/adjustable loans have floors 23% of the loans that have floors are at the floor 28% of the loans that have floors are within 100 basis points of the floor FHLB, Sub Debt & Other

 
20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 —% 1% 2% 3% 4% 5% 6% 7% $ B ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0 2 4 6 8 10 12 14 16 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Protecting net interest margin Noncore Deposits Core Deposits Manage deposit costs Quarter Ending Quarter Last 12 Months Amount Rate Amount Rate 06/30/25 $49.3M 1.47% $204.1M 1.52% 12/31/09 $17.7M 1.83% $83.2M 2.21% 12 Focus on core deposits Quarter Ending Balance % of Total Deposits 06/30/25 $12,050M 89% 12/31/09 $1,924M 50% Loan Yield Deposit Cost Core Deposits % Loan–Deposit Spread

 
20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 -20% -10% 0% 10% 20% 30% 40% 50% Protecting net interest margin Peer Median Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation Net Noncore Funding Dependence Peer Top Quartile 13 $ B illio n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 —% 20% 40% 60% 80% 100% 0 2 4 6 8 10 12 14 Banner Loan-to-Deposit Ratio Deposits Loans

 
20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0% 1% 2% 3% 4% 5% 6% 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Protecting net interest margin Maintain top quartile net interest margin Quarter Ending Quarter Last 12 Months Amount Rate Amount Rate 06/30/25 $144M 3.83% $562M 3.76% 12/31/09 $39M 3.53% $146M 3.36% Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation 14 Peer Top Quartile Peer Median Net Interest Margin Banner Net Interest Margin Earning Asset Yield Funding Cost

 
Conservative investment portfolio 15 Assumes flat forward balance sheet, parallel and sustained shift in market rates ratably over a 12-month period (ramp) or immediate (shock); Base as of 6/30/25 CMO, $1,033, 33.9% MBS, $794, 26.1% CMBS, $476, 15.6% Municipal, $459, 15.1% ABS, $164, 5.4% Corp, $111, 3.6% Agency, $8, 0.2% Other, $3, 0.1% Y e ar s 0.19 -0.42 9.01 6.10 6.33 6.56 6.50 6.47 Total Portfolio Effective Duration Duration on New Purchases Q3 2024 Q4 2024 Q1 2025 Q2 2025 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 6.26% 6.46% 4.85% 5.73% 3.08% 2.99% 2.97% 2.96% New Purchases Tax Effective Yield Total Portfolio Tax Effective Yield Q3 2024 Q4 2024 Q1 2025 Q2 2025 0% 2% 4% 6% 8% 12 Month Net Interest Income Sensitivity ($MM), % Change Quarterly New Purchases: Average Duration Investment Portfolio Composition ($3.05 billion) 79% of investments are Agency MBS/CMO or AAA rated 7.3% non-rated investments, principally CRA investments Portfolio is a diversified mix of asset types and blend of fixed and floating rate instruments. It remains moderately asset sensitive. Quarterly New Purchases: Average Yield $ MillionsRamp $MM Ramp % Change Shock $MM Shock % Change Up 200 612,926 0.7% 618,318 1.6% Up 100 612,731 0.7% 618,820 1.7% Base 608,619 0.0% 608,619 0.0% Down 100 602,206 (1.1)% 593,779 (2.4)% Down 200 597,187 (1.9)% 582,342 (4.3)%

 
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Spending carefully Benefit from scale Control core operating expense 16

 
$ M ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0 20 40 60 80 100 20% 30% 40% 50% 60% 70% 80% 90% 100% 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 50% 60% 70% 80% 90% 100% Spending carefully Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation 17 Control core operating expense Quarter Ending Quarter Last 12 Months Amount Amount 06/30/25 $98M $389M 12/31/09 $31M $132M Peer Top Quartile Peer Median Banner Efficiency Ratio Occupancy Compensation Information Services Other Efficiency Ratio

 
Maintaining a moderate risk profile Embrace effective enterprise risk management Minimize nonperforming assets Maintain appropriate loan loss reserve Maintain appropriate risk capital Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely 18

 
Commercial RE 34% Multifamily 7% Construction 15% Commercial 21% Agricultural 3% 1-4 Family 14% Consumer 6% Diversified loan portfolio 19 Loan Composition 6/30/2025 CRE Breakout $MM % Owner Ooccuped CRE 1,125 10 % Investment Properties 1,625 14 % Small Balance CRE 1,223 10 % Total Comm CRE 3,974 34 % Construction Breakout $MM % Commercial 159 1 % Multifamily 568 5 % 1-4 Family 552 5 % Land 417 4 % Total Construction 1,697 15 % Loan Originations (commitments, $MM) A ve rag e Y ie ld 7.69% 8.27% 8.59%8.47%8.47% 8.23% 7.56% 8.01% 7.27% Commercial RE Multifamily Construction Commercial Agricultural 1-4 Fam Consumer Avg Yield on New Loan Originations Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 0 200 400 600 800 1,000 1,200 1,400 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

 
20 Characteristics of highlighted loan segments Office 1 Balances ($MM) $630.2 Percent of Total Loans 5.4% Total Investor Office $362.1 Total Owner Occupied $268.1 Average Loan Size $0.8 Largest Loan Size $18.5 30 + days Past Due $0.0 Adversely Classified $6.4 Retail 2 Balances ($MM) $1,457.5 Percent of Total Loans 12.5% Balance of Retail Loans Secured by CRE * $1,349.4 Average Loan Size $0.7 Average CRE Secured Loan Size $0.8 Largest Loan Size $26.5 30 + days Past Due $0.8 Adversely Classified $18.7 * No mall exposure Healthcare 3 Balances ($MM) $416.9 Percent of Total Loans 3.6% Balance Secured by Medical Office * $162.1 Medical Office as a % of Total Loans 1.4% Average Loan Size $0.5 Average Medical Office Size $0.7 Largest Loan Size $15.9 30 + days Past Due $0.2 Adversely Classified $18.8 * No hospital exposure 1 By collateral code 2 Retail business loans, both commercial and commercial real estate secured loans 3 All healthcare and social services, including both commercial and commercial real estate secured loans Multifamily Balances ($MM) $860.7 Percent of Total Loans 7.4% Total Affordable Housing $388.0 Total Market Rent/ Middle Income $472.7 Average Loan Size $1.7 Largest Loan Size $30.0 30 + days Past Due $0.0 Adversely Classified $2.1 CA 37% ID 6% OR 14% Other 3% WA 40% CA 28% ID 6%OR 16% Other 7% WA 43% CA 18% ID 4% OR 17% Other 3% WA 58% CA 31% ID 1%OR 22% Other 7% WA 39%

 
21 Origination Year Portfolio Segment Balance % Owner Occupied 2025 2024 2023 2022 and earlier Office $630.2 58% $41.3 $24.2 $38.2 $526.6 Retail (CRE Secured) $1,349.4 53% $91.0 $225.5 $138.6 $894.2 Medical Office $162.1 50% $3.3 $17.6 $7.8 $133.4 Multifamily $860.7 0% $20.9 $36.0 $58.1 $745.7 Scheduled Maturity or Next Reprice Date (excludes variable rate loans) Portfolio Segment Balance < 12 months 1 - 2 years 2 - 3 years 3 - 5 years > 5 years Office $630.2 $81.8 $113.5 $74.0 $168.6 $112.7 Retail (CRE Secured) $1,349.4 $123.8 $182.1 $130.3 $468.2 $182.0 Medical Office $162.1 $25.8 $19.1 $13.7 $40.1 $29.1 Multifamily $860.7 $133.3 $141.2 $49.5 $90.7 $367.3 Characteristics of highlighted loan segments

 
Allowance for credit losses 22 $ M ill io n s ACL Provision/ 2.0 2.5 0.5 2.4 1.7 3.0 3.1 4.8 20 23 -Q 3 20 23 -Q 4 20 24 -Q 1 20 24 -Q 2 20 24 -Q 3 20 24 -Q 4 20 25 -Q 1 20 25 -Q 2 $ M ill io n s $108.4 $167.3 $132.1 $141.5 $149.6 $155.5 $157.3 $160.5 1.16% 1.90% 1.48% 1.39% 1.38% 1.37% 1.38% 1.37% ACL - Loans ACL - Loans as % of Loans, excluding PPP C EC L D ay 1 12 /3 1/ 20 20 12 /3 1/ 20 21 12 /3 1/ 20 22 12 /3 1/ 20 23 12 /3 1/ 20 24 20 25 -Q 1 20 25 -Q 2 Allocation of Allowance for Credit Losses-Loans Allowance ($000) % Coverage Non Performing ($000) % Coverage NPLs Commercial RE 41,036 1.03% 10 NM* Multifamily 9,918 1.15% 0 0% Construction 34,124 2.01% 4,369 781% 1-4 Family 20,917 1.30% 18,376 114% Commercial 38,591 1.56% 6,647 581% Agricultural 6,216 1.80% 8,690 72% Consumer 9,699 1.32% 4,882 199% Total 160,501 1.37% 42,974 373% *not meaningful

 
$ M ill io n s 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0 50 100 150 200 250 300 350Minimize nonperforming assets Quarter Ending NPAs REO Amount % of TA Amount % of TA 06/30/25 $50M 0.30% $7M 0.04% 12/31/09 $292M 6.11% $78M 2.01% Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation Maintaining a moderate risk profile ACLL Real Estate Owned Nonperforming Loans 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Peer Top Quartile Peer Median Banner ACLL to Total Loans 23

 
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Employing capital wisely Maintain premium to tangible book value Pay appropriate dividends Prepare for future opportunities 24

 
Reconciliation of non-GAAP measures 25 $ Thousands Quarters Ended PRE-TAX PRE-PROVISION EARNINGS Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Income before provision for income taxes (GAAP) $ 56,007 $ 55,793 $ 49,248 Provision for credit losses 4,795 3,139 2,369 Pretax pre provision earnings (non-GAAP) 60,802 58,932 51,617 Exclude net loss/(gain) on sale of securities 3 — 562 Exclude net change in valuation of financial instruments carried at fair value (88) (315) 190 Exclude building and lease exit costs 1,753 — — Adjusted pretax pre provision earnings (non-GAAP) $ 62,470 $ 58,617 $ 52,369

 
Building value at Banner Building value for … Shareholders by delivering top quartile financial performance Clients by delivering super community bank service and products Employees by offering opportunity and reward Communities by providing capital and staying involved 26