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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): October 15, 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 October 15, 2025, Banner Corporation issued its earnings release for the quarter ended September 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 October 16, 2025, and from time to time in presentations to investors and other stakeholders.

Item 8.01 Other Events.

On October 15, 2025, Banner Corporation announced its Board of Directors declared a regular quarterly cash dividend on Banner Corporation common stock of $0.50 per share, payable on November 14, 2025 to stockholders of record as of the close of business on November 4, 2025.

Item 9.01 Financial Statements and Exhibits.*

(d)    Exhibits

99.1    Press Release of Banner Corporation dated October 15, 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: October 15, 2025
By: /s/ Robert G Butterfield
Robert G Butterfield
Executive Vice President, Treasurer and
Chief Financial Officer



EX-99.1 2 banr-09302025xex991earning.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 $53.5 Million, or $1.54 Per Diluted Share, for Third Quarter 2025;
Increases Quarterly Cash Dividend Declared by 4% to $0.50 Per Share

Walla Walla, WA - October 15, 2025 - Banner Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $53.5 million, or $1.54 per diluted share, for the third quarter of 2025, compared to $45.5 million, or $1.31 per diluted share, for the preceding quarter and $45.2 million, or $1.30 per diluted share, for the third quarter of 2024. Net interest income was $150.0 million for the third quarter of 2025, compared to $144.4 million in the preceding quarter and $135.7 million for the third quarter a year ago. The increase in net interest income compared to the preceding quarter and the prior year quarter reflects an increase in both the yield and average balance of interest-earning assets. The increase in net interest income compared to the prior year quarter also reflects a decrease in overall funding costs. Third quarter 2025 results included a $2.7 million provision for credit losses, compared to $4.8 million in the preceding quarter and $1.7 million in the third quarter of 2024. Net income was $144.1 million, or $4.15 per diluted share, for the nine months ended September 30, 2025, compared to net income of $122.5 million, or $3.54 per diluted share, for the nine months ended September 30, 2024. Banner’s results for the nine months ended September 30, 2025 include a $10.6 million provision for credit losses, a $374,000 net gain on the sale of securities and a $626,000 net increase in the fair value adjustments on financial instruments carried at fair value, compared to a $4.6 million provision for credit losses, a $5.5 million net loss on the sale of securities and a $1.1 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 increased its regular quarterly cash dividend by 4% to $0.50 per share payable November 14, 2025, to common shareholders of record on November 4, 2025.
“Banner’s third quarter performance reflects the continued 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 third quarter of 2025 benefited from solid year over year loan growth as well as higher yields on interest-earning assets. The strategic investments we have made across the organization are generating meaningful returns and are further strengthening Banner for long-term success. Additionally, Banner continues to demonstrate strong credit quality, supported by stable credit metrics, a well-funded reserve for loan losses, and a robust capital position that provides resilience and flexibility for future growth. We also continue to benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter-end. For 135 years, Banner has stayed true to its core values by consistently doing the right thing for our clients, communities, colleagues, company and shareholders. Our long-standing commitment has enabled us to navigate change with confidence and continue building a strong foundation for the future.”
At September 30, 2025, Banner, on a consolidated basis, had $16.56 billion in assets, $11.54 billion in net loans and $14.02 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 - Third Quarter 2025 Results
October 15, 2025
Page 2
Third Quarter 2025 Highlights
•Net interest margin, on a tax equivalent basis, was 3.98% for the current quarter, compared to 3.92% in the preceding quarter and 3.72% in the third quarter a year ago.
•Revenue increased 5% to $170.7 million for the third quarter of 2025, compared to $162.2 million in the preceding quarter and increased 11% from $153.7 million in the third 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 gains or losses incurred on building and lease exits) was $168.7 million in the third quarter of 2025, compared to $163.0 million in the preceding quarter and $153.7 million in the third quarter a year ago.
•Net interest income was $150.0 million in the third quarter of 2025, compared to $144.4 million in the preceding quarter and increased 11% from $135.7 million in the third quarter a year ago.
•Mortgage banking operations revenue was $3.3 million for the third quarter of 2025, compared to $3.2 million in both the preceding quarter and the third quarter a year ago.
•Return on average assets was 1.30% for the third quarter of 2025, compared to 1.13% in both the preceding quarter and third quarter a year ago.
•Net loans receivable were $11.54 billion at September 30, 2025, compared to $11.53 billion at June 30, 2025, and increased 4% compared to $11.07 billion at September 30, 2024.
•Total deposits increased 4% to $14.02 billion at September 30, 2025, compared to $13.53 billion at June 30, 2025 and $13.54 billion at September 30, 2024.
•Core deposits represented 89% of total deposits at September 30, 2025.
•Non-performing assets were $45.3 million, or 0.27% of total assets, at September 30, 2025, compared to $49.8 million, or 0.30% of total assets, at June 30, 2025 and $45.2 million, or 0.28% of total assets, at September 30, 2024.
•The allowance for credit losses - loans was $159.7 million, or 1.36% of total loans receivable, as of September 30, 2025, compared to $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025 and $154.6 million, or 1.38% of total loans receivable, as of September 30, 2024.
•Dividends paid to shareholders were $0.48 per share in the quarter ended September 30, 2025.
•Common shareholders’ equity per share increased 3% to $55.71 at September 30, 2025, compared to $53.95 at the preceding quarter end, and increased 7% from $52.06 at September 30, 2024.
•Tangible common shareholders’ equity per share* increased 4% to $44.79 at September 30, 2025, compared to $43.09 at June 30, 2025, and increased 9% from $41.12 at September 30, 2024.
•Repurchased 250,000 shares of Banner common stock during the third quarter of 2025 at an average price of $63.11 per share.

*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 $150.0 million in the third quarter of 2025, compared to $144.4 million in the preceding quarter and $135.7 million in the third quarter a year ago. Net interest margin, on a tax equivalent basis, increased six basis points to 3.98% for the third quarter of 2025, compared to 3.92% for the preceding quarter, and increased 26 basis points compared to 3.72% in the third quarter a year ago. The net interest margin for the current quarter benefited from higher yields on interest-earning assets and lower funding costs.
Interest income was $205.8 million in the third quarter of 2025, compared to $200.3 million in the preceding quarter and $195.8 million in the third quarter a year ago. Average yields on interest-earning assets increased three basis points to 5.43% for the third quarter of 2025, compared to 5.40% for the preceding quarter, and increased 10 basis points compared to 5.33% in the third quarter a year ago, primarily due to increases in average loan yields. Average loan yields increased five basis points to 6.17%, compared to 6.12% in the preceding quarter, and increased 13 basis points compared to 6.04% in the third 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 both the third quarter of 2025 and the preceding quarter, compared to $60.2 million in the third quarter a year ago. Total deposit costs increased three basis points to 1.50% in the third quarter of 2025, compared to 1.47% the preceding quarter and decreased 11 basis points compared to 1.61% in the third 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 interest rate declines in the second half of 2024. The average rate paid on borrowings decreased 29 basis points to 4.18% in the third quarter of 2025, compared to 4.47% in the preceding quarter, and decreased compared to 5.08% in the third quarter a year ago, primarily due to declines in both market interest rates and the average balance of borrowings. The total cost of funding liabilities decreased three basis points to 1.57% in the third quarter of 2025, compared to 1.60% in the preceding quarter, primarily due to a decrease in the average balance of FHLB advances, as the increase in deposits was used to pay down borrowings. The total cost of funding liabilities also decreased 16 basis points from 1.73% in the third quarter a year ago, primarily due to deposit interest rate declines and decreases in both the average balance and cost of borrowings, partially offset by an increase in the average balance of interest-bearing deposits.
A $2.7 million provision for credit losses was recorded in the current quarter (comprised of a $1.4 million provision for credit losses - loans and a $1.3 million provision for credit losses - unfunded loan commitments). This compares to a $4.8 million provision for credit losses in the prior quarter (comprised of a $4.2 million provision for credit losses - loans and a $588,000 provision for credit losses - unfunded loan commitments) and a $1.7 million provision for credit losses in the third quarter a year ago (comprised of a $2.0 million provision for credit losses - loans and a $262,000 recapture of provision for credit losses - unfunded loan commitments). The provision for credit losses in the quarter was driven by changes in both portfolio mix and individually evaluated loans.

BANR - Third Quarter 2025 Results
October 15, 2025
Page 3
Total non-interest income was $20.7 million in the third quarter of 2025, compared to $17.8 million in the preceding quarter and $18.1 million in the third quarter a year ago. The increase from the preceding quarter was primarily due to a $2.0 million increase in miscellaneous income, which reflected gains recognized on the sale of assets during the current quarter, compared to losses incurred on building and lease exits during the prior quarter associated with Banner’s reduction of excess office space. The increase compared to the prior year quarter was also primarily due to the increase in miscellaneous income resulting from the disposition of assets. Total non-interest income was $57.6 million for the nine months ended September 30, 2025, compared to $46.9 million for the same period a year earlier.
Mortgage banking operations revenue was $3.3 million in the third quarter of 2025, compared to $3.2 million in both the preceding quarter and the third quarter a year ago. The volume of one- to four-family loans sold during the current quarter increased compared to both the preceding quarter and the prior year quarter. Home purchase activity accounted for 88% of one- to four-family mortgage loan originations in the third quarter of 2025, compared to 85% in the preceding quarter and 88% in the third quarter of 2024.
Total non-interest expense was $102.0 million in the third quarter of 2025, compared to $101.3 million in the preceding quarter and $96.3 million in the third quarter of 2024. The increase from the previous quarter reflected a $450,000 increase in miscellaneous expense due to an increase in talent acquisition and other employee related expenses and a $308,000 increase in advertising and marketing expenses due to increases in direct mail marketing and community development expenses, partially offset by a $551,000 decrease in salary and employee benefits resulting from decreased medical premiums expense and payroll taxes. In addition, the current quarter included losses of $1.0 million in building and lease exit costs, compared to $834,000 of such costs in the previous quarter. The increase 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 nine months ended September 30, 2025, total non-interest expense was $304.6 million, compared to $292.1 million for the nine months ended September 30, 2024.
Banner’s efficiency ratio was 59.76% for the third quarter of 2025, compared to 62.50% in the preceding quarter and 62.63% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 58.54% for the third quarter of 2025, compared to 60.28% in the preceding quarter and 61.27% in the year-ago quarter. The improvement in Banner’s efficiency ratio compared to both the preceding and prior year quarters primarily reflected stronger net interest margins, combined with controlled growth in operating expenses. 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 $16.56 billion at September 30, 2025, up from $16.44 billion at June 30, 2025 and $16.19 billion at September 30, 2024. The increase compared to the prior quarter was primarily due to an increase in interest-bearing deposits held at other banks, partially offset by decreases in securities. Securities and interest-bearing deposits held at other banks totaled $3.47 billion at September 30, 2025, compared to $3.29 billion at June 30, 2025 and $3.50 billion at September 30, 2024. The average effective duration of the securities portfolio was approximately 6.4 years at September 30, 2025, compared to 6.3 years at September 30, 2024.
Total loans receivable were $11.70 billion at September 30, 2025, up from $11.69 billion at June 30, 2025 and up 4% compared to $11.22 billion at September 30, 2024. Commercial real estate loans increased to $4.00 billion at September 30, 2025, compared to $3.97 billion at June 30, 2025, and increased 5% compared to $3.79 billion at September 30, 2024. The increase in commercial real estate loans from both June 30, 2025 and September 30, 2024 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. Construction, land and land development loans increased 2% to $1.74 billion at September 30, 2025, compared to $1.70 billion at June 30, 2025, and increased 14% compared to $1.53 billion at September 30, 2024. The increase from both June 30, 2025 and September 30, 2024 was primarily due to new production and advances, partially offset by payoffs and transfers to the portfolio upon the completion of the construction phase. Commercial business loans decreased 2% to $2.43 billion at September 30, 2025, compared to $2.47 billion at June 30, 2025, primarily due to payoffs and paydowns outpacing new loan production, and increased 3% compared to $2.37 billion at September 30, 2024, primarily as a result of new loan production.
Loans held for sale were $20.3 million at September 30, 2025, compared to $37.7 million at June 30, 2025 and $78.8 million at September 30, 2024. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $136.9 million, compared to $104.6 million in the preceding quarter and $95.0 million in the third quarter a year ago. The decrease in loans held for sale compared to the preceding and prior year quarters was primarily the result of increased sales of one- to four- family residential mortgage loans held for sale, with loan sales outpacing originations during the quarter.
Total deposits were $14.02 billion at September 30, 2025, compared to $13.53 billion at June 30, 2025 and $13.54 billion a year ago. Core deposits increased 4% to $12.48 billion at September 30, 2025, compared to $12.05 billion at June 30, 2025, and increased 4% compared to $12.02 billion at September 30, 2024. The increase compared to the preceding and prior year quarters primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits remain stable at 89% of total deposits at September 30, 2025, June 30, 2025 and September 30, 2024. Certificates of deposit increased 4% to $1.54 billion at September 30, 2025, compared to $1.48 billion at June 30, 2025, and increased from $1.52 billion a year earlier.
FHLB advances decreased 82% to $100.0 million at September 30, 2025, compared to $565.0 million at June 30, 2025 and decreased 57% compared to $230.0 million a year ago as deposits were used as the primary source of funds during the current quarter. At September 30, 2025, off-balance sheet liquidity included additional borrowing capacity of $3.25 billion at the FHLB and $1.63 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million.

BANR - Third Quarter 2025 Results
October 15, 2025
Page 4
At September 30, 2025, total common shareholders’ equity was $1.91 billion or 11.55% of total assets, compared to $1.87 billion or 11.35% of total assets at June 30, 2025, and $1.79 billion or 11.08% of total assets at September 30, 2024. The increase at September 30, 2025 compared to June 30, 2025 was due to a $36.7 million increase in retained earnings resulting from $53.5 million in net income, partially offset by the accrual of $16.8 million of cash dividends during the third quarter of 2025. In addition, Banner repurchased 250,000 shares of its common stock in the third quarter of 2025 at an average price of $63.11 per share. At September 30, 2025, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.54 billion, or 9.50% of tangible assets, compared to $1.49 billion, or 9.28% of tangible assets, at June 30, 2025, and $1.42 billion, or 8.96% 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 September 30, 2025, Banner’s estimated common equity Tier 1 capital ratio was 12.78%, its estimated Tier 1 leverage capital to average assets ratio was 11.33%, and its estimated total capital to risk-weighted assets ratio was 14.66%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.
Credit Quality
The allowance for credit losses - loans was $159.7 million, or 1.36% of total loans receivable and 399% of non-performing loans, at September 30, 2025, compared to $160.5 million, or 1.37% of total loans receivable and 373% of non-performing loans, at June 30, 2025, and $154.6 million, or 1.38% of total loans receivable and 359% of non-performing loans, at September 30, 2024. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $14.0 million at September 30, 2025, compared to $12.8 million at June 30, 2025, and $13.8 million at September 30, 2024. Net loan charge-offs totaled $2.2 million in the third quarter of 2025, compared to net loan charge-offs of $1.0 million and $230,000 in the preceding quarter and third quarter a year ago, respectively. Non-performing loans were $40.0 million at September 30, 2025, compared to $43.0 million at June 30, 2025, and $43.0 million a year ago. Substandard loans were $174.0 million as of September 30, 2025, compared to $189.5 million as of June 30, 2025 and $150.1 million a year ago. Total non-performing assets were $45.3 million, or 0.27% of total assets, at September 30, 2025, compared to $49.8 million, or 0.30% of total assets, at June 30, 2025, and $45.2 million, or 0.28% of total assets, a year ago.

Conference Call
Banner will host a conference call on Thursday, October 16, 2025, at 8:00 a.m. PDT, to discuss its third 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 613608 to participate in the call. A replay of the call will be available at www.bannerbank.com.
About the Company
Banner Corporation is a $16.56 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 - Third Quarter 2025 Results
October 15, 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 federal government shutdowns, 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 - Third Quarter 2025 Results
October 15, 2025
Page 6
RESULTS OF OPERATIONS Quarters Ended Nine Months Ended
(in thousands except shares and per share data) Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024
INTEREST INCOME:        
Loans receivable $ 179,065  $ 175,373  $ 168,338  $ 523,115  $ 486,004 
Mortgage-backed securities 15,090  15,416  16,357  46,250  49,999 
Securities and cash equivalents 11,693  9,470  11,146  30,610  33,664 
Total interest income 205,848  200,259  195,841  599,975  569,667 
INTEREST EXPENSE:        
Deposits 52,251  49,316  53,785  150,304  147,248 
Federal Home Loan Bank (FHLB) advances 1,527  3,370  2,263  5,757  8,856 
Other borrowings 694  675  1,147  2,063  3,482 
Subordinated debt
 1,387  2,499  2,971  6,380  8,901 
Total interest expense 55,859  55,860  60,166  164,504  168,487 
Net interest income 149,989  144,399  135,675  435,471  401,180 
PROVISION FOR CREDIT LOSSES 2,670  4,795  1,692  10,604  4,581 
Net interest income after provision for credit losses 147,319  139,604  133,983  424,867  396,599 
NON-INTEREST INCOME:        
Deposit fees and other service charges 10,955  10,835  10,741  32,559  32,353 
Mortgage banking operations 3,298  3,226  3,180  9,627  8,521 
Bank-owned life insurance 2,702  2,384  2,445  7,661  7,049 
Miscellaneous 3,175  1,221  1,658  6,742  5,538 
  20,130  17,666  18,024  56,589  53,461 
Net gain (loss) on sale of securities 377  (3) —  374  (5,465)
Net change in valuation of financial instruments carried at fair value 223  88  39  626  (1,143)
Total non-interest income 20,730  17,751  18,063  57,589  46,853 
NON-INTEREST EXPENSE:        
Salary and employee benefits 64,935  65,486  61,832  195,278  188,032 
Less capitalized loan origination costs (4,802) (4,924) (4,354) (13,056) (12,669)
Occupancy and equipment 12,518  12,256  12,040  36,871  36,630 
Information and computer data services 8,199  8,199  7,134  24,026  21,694 
Payment and card processing services 6,060  5,899  5,346  17,709  16,747 
Professional and legal expenses 2,190  2,271  2,102  6,891  4,833 
Advertising and marketing 1,395  1,087  1,161  3,072  3,438 
Deposit insurance 2,867  2,800  2,874  8,464  8,541 
State and municipal business and use taxes 1,655  1,416  1,432  4,525  4,130 
Real estate operations, net 203  392  103  534  180 
Amortization of core deposit intangibles 341  455  590  1,252  2,037 
Miscellaneous 6,461  6,011  6,031  19,063  18,467 
Total non-interest expense 102,022  101,348  96,291  304,629  292,060 
Income before provision for income taxes 66,027  56,007  55,755  177,827  151,392 
PROVISION FOR INCOME TAXES 12,525  10,511  10,602  33,694  28,885 
NET INCOME $ 53,502  $ 45,496  $ 45,153  $ 144,133  $ 122,507 
Earnings per common share:        
Basic $ 1.55  $ 1.31  $ 1.31  $ 4.17  $ 3.56 
Diluted $ 1.54  $ 1.31  $ 1.30  $ 4.15  $ 3.54 
Cumulative dividends declared per common share $ 0.48  $ 0.48  $ 0.48  $ 1.44  $ 1.44 
Weighted average number of common shares outstanding:        
Basic 34,494,824  34,627,433  34,498,830  34,543,969  34,459,662 
Diluted 34,659,346  34,738,948  34,650,322  34,730,103  34,575,498 
(Decrease) increase in common shares outstanding (248,697) 94,022  936  (124,535) 108,319 

BANR - Third Quarter 2025 Results
October 15, 2025
Page 7
FINANCIAL CONDITION       Percentage Change
(in thousands except shares and per share data) Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024 Prior Qtr Prior Yr Qtr
ASSETS      
Cash and due from banks $ 193,453  $ 239,339  $ 203,402  $ 226,568  (19) % (15) %
Interest-bearing deposits 479,410  244,009  298,456  252,227  96  % 90  %
Total cash and cash equivalents
 672,863  483,348  501,858  478,795  39  % 41  %
Securities - available for sale, amortized cost $2,292,835, $2,372,331, $2,460,262 and $2,523,968, respectively
 2,018,525  2,064,581  2,104,511  2,237,939  (2) % (10) %
Securities - held to maturity, fair value $815,434, $801,838, $825,528 and $879,278, respectively
 971,603  981,312  1,001,564  1,013,903  (1) % (4) %
Total securities
 2,990,128  3,045,893  3,106,075  3,251,842  (2) % (8) %
FHLB stock 14,226  35,151  22,451  19,751  (60) % (28) %
Loans held for sale 20,334  37,651  32,021  78,841  (46) % (74) %
Loans receivable 11,702,538  11,690,373  11,354,656  11,224,606  —  % 4  %
Allowance for credit losses – loans (159,707) (160,501) (155,521) (154,585) —  % 3  %
Net loans receivable
 11,542,831  11,529,872  11,199,135  11,070,021  —  % 4  %
Accrued interest receivable 64,914  64,729  60,885  66,981  —  % (3) %
Property and equipment, net 113,848  117,175  124,589  125,256  (3) % (9) %
Goodwill 373,121  373,121  373,121  373,121  —  % —  %
Other intangibles, net 1,806  2,147  3,058  3,647  (16) % (50) %
Bank-owned life insurance 317,469  316,365  312,549  310,400  —  % 2  %
Operating lease right-of-use assets 35,494  38,754  39,998  38,192  (8) % (7) %
Other assets 416,047  392,963  424,297  371,829  6  % 12  %
Total assets
 $ 16,563,081  $ 16,437,169  $ 16,200,037  $ 16,188,676  1  % 2  %
LIABILITIES      
Deposits:      
Non-interest-bearing $ 4,572,338  $ 4,504,491  $ 4,591,543  $ 4,688,244  2  % (2) %
Interest-bearing transaction and savings accounts 7,903,215  7,545,028  7,423,183  7,328,051  5  % 8  %
Interest-bearing certificates 1,540,382  1,477,772  1,499,672  1,521,853  4  % 1  %
Total deposits 14,015,935  13,527,291  13,514,398  13,538,148  4  % 4  %
Advances from FHLB 100,000  565,000  290,000  230,000  (82) % (57) %
Other borrowings 120,536  117,112  125,257  154,533  3  % (22) %
Subordinated notes, net —  —  80,278  80,170  —  % (100) %
Junior subordinated debentures at fair value 76,251  73,366  67,477  66,257  4  % 15  %
Operating lease liabilities 38,826  41,696  43,472  42,318  (7) % (8) %
Accrued expenses and other liabilities 251,464  200,194  258,070  237,128  26  % 6  %
Deferred compensation 47,177  46,846  46,759  46,401  1  % 2  %
Total liabilities 14,650,189  14,571,505  14,425,711  14,394,955  1  % 2  %
SHAREHOLDERS’ EQUITY      
Common stock 1,295,821  1,309,004  1,307,509  1,304,792  (1) % (1) %
Retained earnings 837,826  801,082  744,091  714,472  5  % 17  %
Accumulated other comprehensive loss (220,755) (244,422) (277,274) (225,543) (10) % (2) %
Total shareholders’ equity 1,912,892  1,865,664  1,774,326  1,793,721  3  % 7  %
Total liabilities and shareholders’ equity $ 16,563,081  $ 16,437,169  $ 16,200,037  $ 16,188,676  1  % 2  %
Common Shares Issued:      
Shares outstanding at end of period 34,335,297  34,583,994  34,459,832  34,456,688 
Common shareholders’ equity per share (1)
 $ 55.71  $ 53.95  $ 51.49  $ 52.06 
Common shareholders’ tangible equity per share (1) (2)
 $ 44.79  $ 43.09  $ 40.57  $ 41.12 
Common shareholders’ equity to total assets 11.55  % 11.35  % 10.95  % 11.08  %
Common shareholders’ tangible equity to tangible assets (2)
 9.50  % 9.28  % 8.84  % 8.96  %
Consolidated Tier 1 leverage capital ratio 11.33  % 11.29  % 11.05  % 10.91  %
(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 - Third Quarter 2025 Results
October 15, 2025
Page 8
ADDITIONAL FINANCIAL INFORMATION      
(dollars in thousands)      
LOANS Percentage Change
Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024 Prior Qtr Prior Yr Qtr
Commercial real estate (CRE):      
Owner-occupied $ 1,134,559  $ 1,125,249  $ 1,027,426  $ 990,516  1  % 15  %
Investment properties 1,652,141  1,625,001  1,623,672  1,583,863  2  % 4  %
Small balance CRE 1,210,357  1,223,477  1,213,792  1,218,822  (1) % (1) %
Multifamily real estate 860,650  860,700  894,425  889,866  —  % (3) %
Construction, land and land development:
Commercial construction 144,125  159,222  122,362  124,051  (9) % 16  %
Multifamily construction 586,104  568,058  513,706  524,108  3  % 12  %
One- to four-family construction 578,128  551,806  514,220  507,350  5  % 14  %
Land and land development 427,348  417,474  369,663  370,690  2  % 15  %
Commercial business:
Commercial business 1,254,460  1,318,483  1,318,333  1,281,615  (5) % (2) %
Small business scored 1,176,889  1,152,531  1,104,117  1,087,714  2  % 8  %
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland 354,884  345,742  340,280  346,686  3  % 2  %
One- to four-family residential 1,582,605  1,610,133  1,591,260  1,575,164  (2) % —  %
Consumer:
Consumer—home equity revolving lines of credit 649,188  639,757  625,680  622,615  1  % 4  %
Consumer—other 91,100  92,740  95,720  101,546  (2) % (10) %
Total loans receivable $ 11,702,538  $ 11,690,373  $ 11,354,656  $ 11,224,606  —  % 4  %
Loans 30 - 89 days past due and on accrual $ 14,674  $ 10,786  $ 26,824  $ 13,030 
Total delinquent loans (including loans on non-accrual), net $ 45,529  $ 47,764  $ 55,432  $ 44,656 
Total delinquent loans / Total loans receivable 0.39  % 0.41  % 0.49  % 0.40  %

LOANS BY GEOGRAPHIC LOCATION Percentage Change
Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024 Prior Qtr Prior Yr Qtr
Amount Percentage Amount Amount Amount
Washington $ 5,407,327  46  % $ 5,438,285  $ 5,245,886  $ 5,203,637  (1) % 4  %
California 3,064,993  26  % 3,010,678  2,861,435  2,796,965  2  % 10  %
Oregon 2,137,422  18  % 2,141,185  2,113,229  2,108,229  —  % 1  %
Idaho 668,949  6  % 671,217  665,158  652,148  —  % 3  %
Utah 79,697  1  % 70,474  82,459  85,316  13  % (7) %
Other 344,150  3  % 358,534  386,489  378,311  (4) % (9) %
Total loans receivable $ 11,702,538  100  % $ 11,690,373  $ 11,354,656  $ 11,224,606  —  % 4  %

BANR - Third Quarter 2025 Results
October 15, 2025
Page 9
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

LOAN ORIGINATIONS Quarters Ended
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024
Commercial real estate $ 118,354  $ 216,189  $ 114,372 
Multifamily real estate 2,500  13,065  314 
Construction and land 369,363  411,210  472,506 
Commercial business 167,627  203,656  179,871 
Agricultural business 7,681  14,414  5,877 
One-to four-family residential 6,817  5,491  24,488 
Consumer 122,193  102,600  96,137 
Total loan originations (excluding loans held for sale) $ 794,535  $ 966,625  $ 893,565 



BANR - Third Quarter 2025 Results
October 15, 2025
Page 10
ADDITIONAL FINANCIAL INFORMATION      
(dollars in thousands)      
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS
  Quarters Ended
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024
Balance, beginning of period $ 160,501  $ 157,323  $ 152,848 
Provision for credit losses – loans 1,384  4,201  1,967 
Recoveries of loans previously charged off:
Commercial real estate 36  53  65 
Construction and land 725  —  — 
One- to four-family real estate 13  58  14 
Commercial business 99  361  613 
Agricultural business, including secured by farmland 99  1  1 
Consumer 78  168  41 
  1,050  641  734 
Loans charged off:
Construction and land (218) —  (145)
Commercial business (518) (892) (414)
Agricultural business, including secured by farmland (2,054) (362) — 
Consumer (438) (410) (405)
  (3,228) (1,664) (964)
Net charge-offs (2,178) (1,023) (230)
Balance, end of period $ 159,707  $ 160,501  $ 154,585 
Net charge-offs / average loans receivable (0.019) % (0.009) % (0.002) %

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024
Commercial real estate $ 41,191  $ 41,036  $ 40,830  $ 40,040 
Multifamily real estate 9,901  9,918  10,308  10,233 
Construction and land 35,144  34,124  29,038  28,322 
One- to four-family real estate 20,485  20,917  20,807  20,463 
Commercial business 37,646  38,591  38,611  39,779 
Agricultural business, including secured by farmland 5,268  6,216  5,727  5,340 
Consumer 10,072  9,699  10,200  10,408 
Total allowance for credit losses – loans $ 159,707  $ 160,501  $ 155,521  $ 154,585 
Allowance for credit losses - loans / Total loans receivable 1.36  % 1.37  % 1.37  % 1.38  %
Allowance for credit losses - loans / Non-performing loans 399  % 373  % 421  % 359  %

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS
  Quarters Ended
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024
Balance, beginning of period $ 12,750  $ 12,162  $ 14,027 
Provision (recapture) for credit losses - unfunded loan commitments 1,290  588  (262)
Balance, end of period $ 14,040  $ 12,750  $ 13,765 


BANR - Third Quarter 2025 Results
October 15, 2025
Page 11
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
NON-PERFORMING ASSETS Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024
Loans on non-accrual status:      
Secured by real estate:      
Commercial $ 460  $ 10  $ 2,186  $ 2,127 
Construction and land 4,240  4,369  3,963  4,286 
One- to four-family 16,576  15,480  10,016  9,592 
Commercial business 6,824  6,647  7,067  10,705 
Agricultural business, including secured by farmland 5,765  8,690  8,485  7,703 
Consumer 4,877  4,802  4,835  4,636 
  38,742  39,998  36,552  39,049 
Loans more than 90 days delinquent, still on accrual:      
Secured by real estate:      
Commercial 274  —  —  2,258 
Construction and land —  —  —  380 
One- to four-family 834  2,896  369  961 
Commercial business 166  —  —  — 
Consumer —  80  35  359 
  1,274  2,976  404  3,958 
Total non-performing loans 40,016  42,974  36,956  43,007 
REO 5,272  6,801  2,367  2,221 
Other repossessed assets —  —  300  — 
Total non-performing assets $ 45,288  $ 49,775  $ 39,623  $ 45,228 
Total non-performing assets to total assets 0.27  % 0.30  % 0.24  % 0.28  %

LOANS BY CREDIT RISK RATING Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024
Pass $ 11,491,485  $ 11,432,456  $ 11,118,744  $ 11,022,014 
Special Mention 37,013  68,372  43,451  52,497 
Substandard 174,040  189,545  192,461  150,095 
Total $ 11,702,538  $ 11,690,373  $ 11,354,656  $ 11,224,606 


BANR - Third Quarter 2025 Results
October 15, 2025
Page 12

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands) 
DEPOSIT COMPOSITION Percentage Change
Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024 Prior Qtr Prior Yr Qtr
Non-interest-bearing $ 4,572,338  $ 4,504,491  $ 4,591,543  $ 4,688,244  2  % (2) %
Interest-bearing checking 2,734,822  2,534,900  2,393,864  2,344,561  8  % 17  %
Regular savings accounts 3,705,823  3,538,372  3,478,423  3,339,859  5  % 11  %
Money market accounts 1,462,570  1,471,756  1,550,896  1,643,631  (1) % (11) %
Total interest-bearing transaction and savings accounts 7,903,215  7,545,028  7,423,183  7,328,051  5  % 8  %
Total core deposits 12,475,553  12,049,519  12,014,726  12,016,295  4  % 4  %
Interest-bearing certificates 1,540,382  1,477,772  1,499,672  1,521,853  4  % 1  %
Total deposits $ 14,015,935  $ 13,527,291  $ 13,514,398  $ 13,538,148  4  % 4  %

GEOGRAPHIC CONCENTRATION OF DEPOSITS Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024 Percentage Change
Amount Percentage Amount Amount Amount Prior Qtr Prior Yr Qtr
Washington $ 7,648,527  55  % $ 7,334,391  $ 7,441,413  $ 7,413,414  4  % 3  %
Oregon 3,081,329  22  % 3,029,712  2,981,327  2,997,843  2  % 3  %
California 2,542,903  18  % 2,486,514  2,392,573  2,423,295  2  % 5  %
Idaho 743,176  5  % 676,674  699,085  703,596  10  % 6  %
Total deposits $ 14,015,935  100  % $ 13,527,291  $ 13,514,398  $ 13,538,148  4  % 4  %

INCLUDED IN TOTAL DEPOSITS Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024
Public non-interest-bearing accounts $ 139,999  $ 151,484  $ 165,667  $ 141,541 
Public interest-bearing transaction & savings accounts 230,192  250,350  248,746  246,332 
Public interest-bearing certificates 35,660  21,272  25,423  28,144 
Total public deposits $ 405,851  $ 423,106  $ 439,836  $ 416,017 
Collateralized public deposits $ 312,142  $ 329,416  $ 336,376  $ 317,960 
Total brokered deposits $ 49,989  $ 49,977  $ 50,346  $ 50,333 
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024
Number of deposit accounts 449,087  451,185  460,004  459,127 
Average account balance per account $ 31  $ 30  $ 30  $ 30 




BANR - Third Quarter 2025 Results
October 15, 2025
Page 13
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF SEPTEMBER 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 $ 2,009,954  14.66  % $ 1,096,832  8.00  % $ 1,371,040  10.00  %
      Tier 1 capital to risk-weighted assets 1,838,541  13.41  % 822,624  6.00  % 822,624  6.00  %
      Tier 1 leverage capital to average assets 1,838,541  11.33  % 649,161  4.00  %  n/a  n/a
      Common equity tier 1 capital to risk-weighted assets 1,752,041  12.78  % 616,968  4.50  %  n/a  n/a
Banner Bank:        
      Total capital to risk-weighted assets 1,941,114  14.16  % 1,096,375  8.00  % 1,370,469  10.00  %
      Tier 1 capital to risk-weighted assets 1,769,772  12.91  % 822,281  6.00  % 1,096,375  8.00  %
      Tier 1 leverage capital to average assets 1,769,772  10.91  % 648,959  4.00  % 811,198  5.00  %
      Common equity tier 1 capital to risk-weighted assets 1,769,772  12.91  % 616,711  4.50  % 890,805  6.50  %

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

BANR - Third Quarter 2025 Results
October 15, 2025
Page 14
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD Quarters Ended
Sep 30, 2025 Jun 30, 2025 Sep 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
 $ 32,109  $ 531  6.56  % $ 29,936  $ 503  6.74  % $ 26,954  $ 453  6.69  %
Mortgage loans
 9,651,895  147,682  6.07  % 9,565,357  143,909  6.03  % 9,207,468  135,497  5.85  %
Commercial/agricultural loans
 1,869,782  31,124  6.60  % 1,924,092  31,196  6.50  % 1,879,215  32,547  6.89  %
Consumer and other loans
 119,593  2,114  7.01  % 121,142  2,087  6.91  % 128,548  2,154  6.67  %
Total loans (1)
 11,673,379  181,451  6.17  % 11,640,527  177,695  6.12  % 11,242,185  170,651  6.04  %
Mortgage-backed securities
 2,445,497  15,269  2.48  % 2,496,972  15,576  2.50  % 2,623,399  16,498  2.50  %
Other securities
 854,725  9,065  4.21  % 893,062  9,561  4.29  % 943,310  11,120  4.69  %
Interest-bearing deposits with banks
 291,147  3,053  4.16  % 75,539  577  3.06  % 51,604  493  3.80  %
FHLB stock
 15,729  463  11.68  % 23,077  222  3.86  % 16,664  412  9.84  %
Total investment securities 3,607,098  27,850  3.06  % 3,488,650  25,936  2.98  % 3,634,977  28,523  3.12  %
Total interest-earning assets
 15,280,477  209,301  5.43  % 15,129,177  203,631  5.40  % 14,877,162  199,174  5.33  %
Non-interest-earning assets 1,022,905      994,003  981,290     
Total assets
 $ 16,303,382      $ 16,123,180  $ 15,858,452     
Deposits:            
Interest-bearing checking accounts
 $ 2,618,924  10,834  1.64  % $ 2,465,015  9,462  1.54  % $ 2,295,723  9,497  1.65  %
Savings accounts
 3,616,728  20,170  2.21  % 3,493,965  18,837  2.16  % 3,268,647  19,299  2.35  %
Money market accounts
 1,471,938  7,799  2.10  % 1,492,229  7,729  2.08  % 1,611,543  9,184  2.27  %
Certificates of deposit
 1,510,966  13,448  3.53  % 1,489,611  13,288  3.58  % 1,540,637  15,805  4.08  %
Total interest-bearing deposits
 9,218,556  52,251  2.25  % 8,940,820  49,316  2.21  % 8,716,550  53,785  2.45  %
Non-interest-bearing deposits
 4,573,009  —  —  % 4,480,579  —  —  % 4,601,755  —  —  %
Total deposits
 13,791,565  52,251  1.50  % 13,421,399  49,316  1.47  % 13,318,305  53,785  1.61  %
Other interest-bearing liabilities:              
FHLB advances
 133,380  1,527  4.54  % 296,671  3,370  4.56  % 161,413  2,263  5.58  %
Other borrowings
 119,727  694  2.30  % 122,227  675  2.22  % 159,439  1,147  2.86  %
Junior subordinated debentures and subordinated notes
 89,178  1,387  6.17  % 168,793  2,499  5.94  % 179,075  2,971  6.60  %
Total borrowings
 342,285  3,608  4.18  % 587,691  6,544  4.47  % 499,927  6,381  5.08  %
Total funding liabilities
 14,133,850  55,859  1.57  % 14,009,090  55,860  1.60  % 13,818,232  60,166  1.73  %
Other non-interest-bearing liabilities (2)
 296,036      274,407  311,803     
Total liabilities
 14,429,886      14,283,497  14,130,035     
Shareholders’ equity 1,873,496      1,839,683  1,728,417     
Total liabilities and shareholders’ equity $ 16,303,382      $ 16,123,180  $ 15,858,452     
Net interest income/rate spread (tax equivalent) 153,442  3.86  % 147,771  3.80  % 139,008  3.60  %
Net interest margin (tax equivalent) 3.98  % 3.92  % 3.72  %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis (3,453) (3,372) (3,333)
Net interest income and margin, as reported $ 149,989  3.89  % $ 144,399  3.83  % $ 135,675  3.63  %
Additional Key Financial Ratios:
Return on average assets 1.30  % 1.13  % 1.13  %
Adjusted return on average assets (4)
 1.28  % 1.16  % 1.13  %
Return on average equity 11.33  % 9.92  % 10.39  %
Adjusted return on average equity (4)
 11.18  % 10.20  % 10.39  %
Average equity/average assets 11.49  % 11.41  % 10.90  %
Average interest-earning assets/average interest-bearing liabilities 159.82  % 158.78  % 161.42  %
Average interest-earning assets/average funding liabilities 108.11  % 108.00  % 107.66  %
Non-interest income/average assets 0.50  % 0.44  % 0.45  %
Non-interest expense/average assets 2.48  % 2.52  % 2.42  %
Efficiency ratio 59.76  % 62.50  % 62.63  %
Adjusted efficiency ratio (4)
 58.54  % 60.28  % 61.27  %

(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 $2.4 million for the quarter ended September 30, 2025 and $2.3 million for both the quarters ended June 30, 2025 and September 30, 2024. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for both the quarters ended September 30, 2025 and June 30, 2025 and $1.0 million for the quarter ended September 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 - Third Quarter 2025 Results
October 15, 2025
Page 15
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD Nine Months Ended
Sep 30, 2025 Sep 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
 $ 28,203  $ 1,391  6.59  % $ 16,225  $ 826  6.80  %
Mortgage loans
 9,528,868  429,315  6.02  % 9,036,256  390,011  5.77  %
Commercial/agricultural loans
 1,900,225  93,072  6.55  % 1,861,182  95,155  6.83  %
Consumer and other loans
 120,735  6,293  6.97  % 131,676  6,506  6.60  %
Total loans (1)
 11,578,031  530,071  6.12  % 11,045,339  492,498  5.96  %
Mortgage-backed securities
 2,494,794  46,740  2.50  % 2,674,555  50,424  2.52  %
Other securities
 883,330  28,313  4.29  % 962,183  33,802  4.69  %
Interest-bearing deposits with banks
 144,974  4,114  3.79  % 51,630  1,530  3.96  %
FHLB stock
 17,214  834  6.48  % 18,931  986  6.96  %
Total investment securities 3,540,312  80,001  3.02  % 3,707,299  86,742  3.13  %
Total interest-earning assets
 15,118,343  610,072  5.40  % 14,752,638  579,240  5.24  %
Non-interest-earning assets 1,007,862    950,588 
Total assets
 $ 16,126,205    $ 15,703,226 
Deposits:    
Interest-bearing checking accounts
 $ 2,489,219  28,833  1.55  % $ 2,185,796  23,834  1.46  %
Savings accounts
 3,521,141  57,110  2.17  % 3,161,266  51,778  2.19  %
Money market accounts
 1,506,171  23,388  2.08  % 1,648,208  26,696  2.16  %
Certificates of deposit
 1,510,594  40,973  3.63  % 1,514,982  44,940  3.96  %
Total interest-bearing deposits
 9,027,125  150,304  2.23  % 8,510,252  147,248  2.31  %
Non-interest-bearing deposits
 4,526,898  —  —  % 4,649,297  —  —  %
Total deposits
 13,554,023  150,304  1.48  % 13,159,549  147,248  1.49  %
Other interest-bearing liabilities:            
FHLB advances
 168,663  5,757  4.56  % 211,135  8,856  5.60  %
Other borrowings
 125,517  2,063  2.20  % 171,838  3,482  2.71  %
Junior subordinated debentures and subordinated notes
 142,255  6,380  6.00  % 179,941  8,901  6.61  %
Total borrowings
 436,435  14,200  4.35  % 562,914  21,239  5.04  %
Total funding liabilities
 13,990,458  164,504  1.57  % 13,722,463  168,487  1.64  %
Other non-interest-bearing liabilities (2)
 298,056    303,367 
Total liabilities
 14,288,514    14,025,830 
Shareholders’ equity 1,837,691    1,677,396 
Total liabilities and shareholders’ equity $ 16,126,205    $ 15,703,226 
Net interest income/rate spread (tax equivalent) 445,568  3.83  % 410,753  3.60  %
Net interest margin (tax equivalent) 3.94  % 3.72  %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis (10,097) (9,573)
Net interest income and margin, as reported $ 435,471  3.85  % $ 401,180  3.63  %
Additional Key Financial Ratios:
Return on average assets 1.19  % 1.04  %
Adjusted return on average assets (4)
 1.20  % 1.08  %
Return on average equity 10.49  % 9.76  %
Adjusted return on average equity (4)
 10.51  % 10.16  %
Average equity/average assets 11.40  % 10.68  %
Average interest-earning assets/average interest-bearing liabilities 159.75  % 162.60  %
Average interest-earning assets/average funding liabilities 108.06  % 107.51  %
Non-interest income/average assets 0.48  % 0.40  %
Non-interest expense/average assets 2.53  % 2.48  %
Efficiency ratio 61.78  % 65.19  %
Adjusted efficiency ratio (4)
 60.30  % 62.84  %

(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 $7.0 million and $6.5 million for the nine months ended September 30, 2025 and 2024, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $3.1 million for both the nine months ended September 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 - Third Quarter 2025 Results
October 15, 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 Nine Months Ended
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024
Net interest income (GAAP) $ 149,989  $ 144,399  $ 135,675  $ 435,471  $ 401,180 
Non-interest income (GAAP) 20,730  17,751  18,063  57,589  46,853 
Total revenue (GAAP) 170,719  162,150  153,738  493,060  448,033 
Exclude: Net (gain) loss on sale of securities (377) 3  —  (374) 5,465 
Net change in valuation of financial instruments carried at fair value (223) (88) (39) (626) 1,143 
(Gains) losses incurred on building and lease exits (1,373) 919  —  (454) — 
Adjusted revenue (non-GAAP) $ 168,746  $ 162,984  $ 153,699  $ 491,606  $ 454,641 

ADJUSTED EARNINGS Quarters Ended Nine Months Ended
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024
Net income (GAAP) $ 53,502  $ 45,496  $ 45,153  $ 144,133  $ 122,507 
Exclude: Net (gain) loss on sale of securities (377) 3  —  (374) 5,465 
Net change in valuation of financial instruments carried at fair value (223) (88) (39) (626) 1,143 
Building and lease exit costs (331) 1,753  —  1,422  — 
Related net tax expense (benefit) 224  (401) 9  (101) (1,586)
Total adjusted earnings (non-GAAP) $ 52,795  $ 46,763  $ 45,123  $ 144,454  $ 127,529 
Diluted earnings per share (GAAP) $ 1.54  $ 1.31  $ 1.30  $ 4.15  $ 3.54 
Diluted adjusted earnings per share (non-GAAP) $ 1.52  $ 1.35  $ 1.30  $ 4.16  $ 3.69 
Return on average assets 1.30  % 1.13  % 1.13  % 1.19  % 1.04  %
Adjusted return on average assets (1)
 1.28  % 1.16  % 1.13  % 1.20  % 1.08  %
Return on average equity 11.33  % 9.92  % 10.39  % 10.49  % 9.76  %
Adjusted return on average equity (2)
 11.18  % 10.20  % 10.39  % 10.51  % 10.16  %

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


BANR - Third Quarter 2025 Results
October 15, 2025
Page 17
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIO Quarters Ended Nine Months Ended
Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024
Non-interest expense (GAAP) $ 102,022  $ 101,348  $ 96,291  $ 304,629  $ 292,060 
Exclude: CDI amortization (341) (455) (590) (1,252) (2,037)
State/municipal tax expense (1,655) (1,416) (1,432) (4,525) (4,130)
REO operations (203) (392) (103) (534) (180)
Building and lease exit costs (1,042) (834) —  (1,876) — 
Adjusted non-interest expense (non-GAAP) $ 98,781  $ 98,251  $ 94,166  $ 296,442  $ 285,713 
Net interest income (GAAP) $ 149,989  $ 144,399  $ 135,675  $ 435,471  $ 401,180 
Non-interest income (GAAP) 20,730  17,751  18,063  57,589  46,853 
Total revenue (GAAP) 170,719  162,150  153,738  493,060  448,033 
Exclude: Net (gain) loss on sale of securities (377) 3  —  (374) 5,465 
Net change in valuation of financial instruments carried at fair value (223) (88) (39) (626) 1,143 
(Gains) losses incurred on building and lease exits (1,373) 919  —  (454) — 
Adjusted revenue (non-GAAP) $ 168,746  $ 162,984  $ 153,699  $ 491,606  $ 454,641 
Efficiency ratio (GAAP) 59.76  % 62.50  % 62.63  % 61.78  % 65.19  %
Adjusted efficiency ratio (non-GAAP) (1)
 58.54  % 60.28  % 61.27  % 60.30  % 62.84  %

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

TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
Sep 30, 2025 Jun 30, 2025 Dec 31, 2024 Sep 30, 2024
Shareholders’ equity (GAAP) $ 1,912,892  $ 1,865,664  $ 1,774,326  $ 1,793,721 
Exclude goodwill and other intangible assets, net 374,927  375,268  376,179  376,768 
Tangible common shareholders’ equity (non-GAAP) $ 1,537,965  $ 1,490,396  $ 1,398,147  $ 1,416,953 
Total assets (GAAP) $ 16,563,081  $ 16,437,169  $ 16,200,037  $ 16,188,676 
Exclude goodwill and other intangible assets, net 374,927  375,268  376,179  376,768 
Total tangible assets (non-GAAP) $ 16,188,154  $ 16,061,901  $ 15,823,858  $ 15,811,908 
Common shareholders’ equity to total assets (GAAP) 11.55  % 11.35  % 10.95  % 11.08  %
Tangible common shareholders’ equity to tangible assets (non-GAAP) 9.50  % 9.28  % 8.84  % 8.96  %
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP) $ 1,912,892  $ 1,865,664  $ 1,774,326  $ 1,793,721 
Tangible common shareholders’ equity (non-GAAP) $ 1,537,965  $ 1,490,396  $ 1,398,147  $ 1,416,953 
Common shares outstanding at end of period 34,335,297  34,583,994  34,459,832  34,456,688 
Common shareholders’ equity (book value) per share (GAAP) $ 55.71  $ 53.95  $ 51.49  $ 52.06 
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) $ 44.79  $ 43.09  $ 40.57  $ 41.12 

EX-99.2 3 a2025-q3presentation.htm EX-99.2 a2025-q3presentation
T h i r 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 October 15, 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.

 
Third quarter 2025 highlights 2 • Net income of $53.5 million, compared to $45.5 million for the prior quarter • HFI Loan growth of $478 million year-over-year (4%) • Total loan originations (excluding HFS) were $795 million • Core deposit growth of $426 million quarter-over-quarter (14% annualized) • Net interest margin (tax equivalent) increased 6 basis points to 3.98% • Efficiency ratio (GAAP) improved 274 basis points quarter-over-quarter to 59.76%; adjusted, non-GAAP efficiency ratio improved 174 basis points to 58.54% • Return on average assets of 1.30%, and return on average equity of 11.33%, compared to 1.13% and 9.92%, respectively, for the prior quarter • $1.4 million provision for credit losses - loans driven by changes in portfolio mix and individually evaluated loans; $1.3 million provision for credit losses - unfunded commitments; Allowance for credit losses – loans was 1.36% of total loans • Non-performing assets remained low at 0.27% of total assets, down 3 basis points from last quarter • Repurchased 250,000 shares of Banner common stock at an average price of $63.11 per share • Announced 4% increase in dividend to $0.50 per share to be paid in November 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 $16.6B Deposits $14.0B Loans $11.7B Offices 135 Employees 1,889 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 (October 2025) Population Estimate (millions) 2020 2030 Growth Washington 7.7 8.2 7%* Oregon 4.2 4.4 3% Idaho 1.8 2.2 19%* California 39.5 39.4 0% Region 53.3 54.2 2% United States 331.6 347.0 5% * 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 5th largest economy* 6 * Source: International Monetary Fund and U.S. Bureau of Economic Analysis, October 2025

 
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 and 2025 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; 12+ 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 gains/losses incurred on building and leases exits. Core revenue1 Quarter Ending Quarter Last 12 Months Amount Amount 09/30/25 $169M $652M 12/31/09 $45M $177M Non-interest income1 Quarter Ending Quarter Last 12 Months Amount Amount 09/30/25 $18.8M $75.7M 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 4,573 0 Interest Bearing 7,708 200 CDs 1,511 353 Subtotal Deposits 13,792 150 FHLB & Other 342 418 Total 14,134 157 11 32% 55% 11% 2% 76% 24% 34% 30% 36% Non-interest Bearing Certificates of Deposit Interest Bearing and Savings Securities & Int-bearing Deposits Loans Fixed: 4.89% Yield Floating: 7.47% Yield Low Cost Funding Mix 9/30/2025 Adjustable: 5.42% Yield Earning Asset Mix 9/30/2025 Loan Repricing Structure 9/30/2025 $ Millions Avg Bal Yield (in bps) Loans 11,673 617 Securities & Int- bearing Deposits 3,607 306 Total 15,280 543 66% of the loan portfolio is floating/adjustable 71% of the floating/adjustable loans have floors 22% of the loans that have floors are at the floor 29% of the loans that have floors are within 100 basis points of the floor (excludes loans at the floor) FHLB & 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 Non-core Deposits Core Deposits Manage deposit costs Quarter Ending Quarter Last 12 Months Amount Rate Amount Rate 09/30/25 $52.3M 1.50% $202.5M 1.50% 12/31/09 $17.7M 1.83% $83.2M 2.21% 12 Focus on core deposits Quarter Ending Balance % of Total Deposits 09/30/25 $12,476M 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 Non-core 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 20 25 -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 09/30/25 $150M 3.89% $576M 3.82% 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 9/30/25 CMO, $1,017, 34.0% MBS, $787, 26.3% CMBS, $456, 15.2% Municipal, $463, 15.5% ABS, $135, 4.5% Corp, $124, 4.1% Agency, $7, 0.2% Other, $3, 0.1% Y e ar s -0.42 9.01 6.10 1.88 6.56 6.50 6.47 6.46 Total Portfolio Effective Duration Duration on New Purchases Q4 2024 Q1 2025 Q2 2025 Q3 2025 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 6.46% 4.85% 5.73% 6.79% 2.99% 2.97% 2.96% 2.93% New Purchases Tax Effective Yield Total Portfolio Tax Effective Yield Q4 2024 Q1 2025 Q2 2025 Q3 2025 0% 2% 4% 6% 8% 12 Month Net Interest Income Sensitivity ($MM), % Change Quarterly New Purchases: Average Duration Investment Portfolio Composition ($2.99 billion) 76% of investments are Agency MBS/CMO or AAA rated 8.6% 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 200 635,138 1.4% 644,959 3.0% Up 100 632,843 1.0% 641,365 2.4% Base 626,379 0.0% 626,379 0.0% Down 100 618,107 (1.3)% 607,681 (3.0)% Down 200 611,711 (2.3)% 593,364 (5.3)%

 
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 09/30/25 $99M $394M 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 non-performing 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 9/30/2025 CRE Breakout $MM % Owner Ooccuped CRE 1,135 10 % Investment Properties 1,652 14 % Small Balance CRE 1,210 10 % Total Comm CRE 3,997 34 % Construction Breakout $MM % Commercial 144 1 % Multifamily 586 5 % 1-4 Family 578 5 % Land 427 4 % Total Construction 1,736 15 % Loan Originations (commitments, $MM) A ve rag e Y ie ld 8.27% 8.59%8.47%8.47% 8.23% 7.56% 8.01% 7.27% 7.35% Commercial RE Multifamily Construction Commercial Agricultural 1-4 Fam Consumer Avg Yield on New Loan Originations Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '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) $632.0 Percent of Total Loans 5.4% Total Investor Office $356.2 Total Owner Occupied $275.8 Average Loan Size $0.8 Largest Loan Size $18.4 30 + days Past Due $0.0 Adversely Classified $0.7 Retail 2 Balances ($MM) $1,457.0 Percent of Total Loans 12.5% Balance of Retail Loans Secured by CRE * $1,351.7 Average Loan Size $0.7 Average CRE Secured Loan Size $0.8 Largest Loan Size $24.1 30 + days Past Due $1.8 Adversely Classified $24.2 * No mall exposure Healthcare 3 Balances ($MM) $414.9 Percent of Total Loans 3.6% Balance Secured by Medical Office * $165.5 Medical Office as a % of Total Loans 1.4% Average Loan Size $0.5 Average Medical Office Size $0.7 Largest Loan Size $15.8 30 + days Past Due $0.6 Adversely Classified $18.6 * No hospital exposure 1 By collateral code 2 Retail business loans, both commercial and commercial real estate secured loans 3 All healthcare and social services, including both commercial and commercial real estate secured loans Multifamily Balances ($MM) $860.7 Percent of Total Loans 7.4% Total Affordable Housing $408.4 Total Market Rent/ Middle Income $452.2 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 15% Other 3% WA 39% CA 29% ID 6% OR 16% Other 6% WA 43% CA 19% ID 4% OR 18% Other 3% WA 56% CA 31% ID 1%OR 21% Other 7% WA 40%

 
21 Origination Year Portfolio Segment Balance % Owner Occupied 2025 2024 2023 2022 and earlier Office $632.0 44% $63.4 $22.2 $38.0 $508.5 Retail (CRE Secured) $1,351.7 54% $129.3 $228.0 $138.3 $856.1 Medical Office $165.5 53% $14.5 $18.0 $7.8 $125.1 Multifamily $860.7 0% $23.8 $36.0 $66.5 $734.4 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 $632.0 $101.2 $84.5 $78.2 $183.6 $106.3 Retail (CRE Secured) $1,351.7 $156.6 $155.5 $159.7 $455.6 $167.2 Medical Office $165.5 $24.7 $19.3 $11.7 $52.2 $27.4 Multifamily $860.7 $147.4 $124.4 $32.1 $80.3 $397.8 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 2.7 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 20 25 -Q 3 $ M ill io n s $108.4 $167.3 $132.1 $141.5$149.6$155.5$157.3$160.5$159.7 1.16% 1.90% 1.48% 1.39% 1.38% 1.37% 1.38% 1.37% 1.36% 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 20 25 -Q 3 Allocation of Allowance for Credit Losses-Loans Allowance ($000) % Coverage Non-performing ($000) % Coverage NPLs Commercial RE 41,191 1.03% 734 NM* Multifamily 9,901 1.15% 0 0% Construction 35,144 2.02% 4,240 829% 1-4 Family 20,485 1.29% 17,410 118% Commercial 37,646 1.55% 6,990 539% Agricultural 5,268 1.48% 5,765 91% Consumer 10,072 1.36% 4,877 207% Total 159,707 1.36% 40,016 399% *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 non-performing assets Quarter Ending NPAs REO Amount % of TA Amount % of TA 09/30/25 $45M 0.27% $5M 0.03% 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 Non-performing 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 Sep 30, 2025 Jun 30, 2025 Sep 30, 2024 Income before provision for income taxes (GAAP) $ 66,027 $ 56,007 $ 55,755 Provision for credit losses 2,670 4,795 1,692 Pre-tax pre-provision earnings (non-GAAP) 68,697 60,802 57,447 Exclude net (gain)/loss on sale of securities (377) 3 — Exclude net change in valuation of financial instruments carried at fair value (223) (88) (39) Exclude net building and lease exit costs (331) 1,753 — Adjusted pre-tax pre-provision earnings (non-GAAP) $ 67,766 $ 62,470 $ 57,408

 
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