{"success":true,"data":{"pressRelease":{"id":"5350","rtpr_id":"nBw3kBWzna","ticker":"BANR","exchange":"NASDAQ","all_tickers":["BANR"],"title":"Banner Corporation Reports Net Income of $54.7 Million, or $1.60 Per Diluted Share, for First Quarter 2026; Increases Quarterly Cash Dividend Declared by 4% to $0.52 Per Share","author":"Business Wire","published_at":"2026-04-22T20:00:00.496Z","article_body":"Banner Corporation Reports Net Income of $54.7 Million, or $1.60 Per Diluted\nShare, for First Quarter 2026; Increases Quarterly Cash Dividend Declared by\n4% to $0.52 Per Share\n\nBanner Corporation (NASDAQ: BANR) (“Banner”), the parent company of Banner\nBank, today reported net income of $54.7 million, or $1.60 per diluted share,\nfor the first quarter of 2026, compared to $51.2 million, or $1.49 per diluted\nshare, for the preceding quarter, and $45.1 million, or $1.30 per diluted\nshare, for the first quarter of 2025. Net interest income was $150.2 million\nfor the first quarter of 2026, compared to $152.4 million in the preceding\nquarter and $141.1 million for the first quarter a year ago. Net interest\nmargin expanded by eight basis points to 4.11%, driven by continued reductions\nin funding costs. The decrease in net interest income compared to the prior\nquarter primarily reflects two fewer calendar days in the current quarter and\na slight decrease in average earning assets, both of which were largely offset\nby the margin improvement. The increase in net interest income compared to the\nfirst quarter a year ago primarily reflects a decrease in overall funding\ncosts and an increase in the average balance of interest-earning assets. First\nquarter 2026 results included a $796,000 recapture of provision for credit\nlosses, compared to $2.4 million of provision for credit losses in the\npreceding quarter and $3.1 million of provision for credit losses in the first\nquarter of 2025.\n\nBanner announced that its Board of Directors increased its regular quarterly\ncash dividend by 4% to $0.52 per share payable May 15, 2026, to common\nshareholders of record on May 5, 2026.\n\n“Banner’s first quarter results demonstrate the continued strength of our\nsuper community bank strategy, which focuses on building client relationships,\npreserving a strong funding base, and delivering exceptional service while\nsustaining a moderate risk profile,” said Mark Grescovich, President and\nCEO. “Our earnings for the first quarter of 2026 benefited from an improved\nnet interest margin, increased non-interest income and decreased non-interest\nexpense. The strategic investments we have made across the organization are\ndelivering tangible returns and are further strengthening Banner for long-term\nsuccess. Additionally, Banner’s credit quality remains solid, supported by a\nwell-funded reserve for loan losses and a robust capital position that\nprovides resilience and flexibility for future growth. We also continue to\nbenefit from a strong core deposit base, with core deposits representing 89%\nof total deposits at quarter-end. For 135 years, Banner has upheld its core\nvalues by consistently doing the right thing for our clients, communities,\ncolleagues, company and shareholders. Our long-standing commitment has enabled\nus to earn trust, navigate change with confidence and continue building a\nstrong foundation for the future.”\n\nAt March 31, 2026, Banner, on a consolidated basis, had $16.34 billion in\nassets, $11.55 billion in net loans and $13.84 billion in deposits. Banner\noperates 135 full-service branch offices, including branches located in eight\nof the top 20 largest western Metropolitan Statistical Areas by population.\n\nFirst Quarter 2026 Highlights\n\n\n * Net interest margin, on a tax equivalent basis, was 4.11% for the current\nquarter, compared to 4.03% in the preceding quarter and 3.92% in the first\nquarter a year ago.\n\n * Revenue was $169.3 million for the first quarter of 2026, compared to $167.7\nmillion in the preceding quarter and an increase of 6% from $160.2 million in\nthe first quarter a year ago.\n\n * Net interest income was $150.2 million in the first quarter of 2026, compared\nto $152.4 million in the preceding quarter and $141.1 million in the first\nquarter a year ago.\n\n * Mortgage banking operations revenue was $3.2 million for the first quarter of\n2026, compared to $3.6 million in the preceding quarter and $3.1 million the\nfirst quarter a year ago.\n\n * Return on average assets was 1.37% for the first quarter of 2026, compared to\n1.24% in the preceding quarter and 1.15% in the first quarter a year ago.\n\n * Net loans receivable were $11.55 billion at March 31, 2026, compared to $11.56\nbillion at December 31, 2025, and compared to $11.28 billion at March 31,\n2025.\n\n * Total deposits were $13.84 billion at March 31, 2026, compared to $13.74\nbillion at December 31, 2025 and $13.59 billion at March 31, 2025.\n\n * Core deposits represented 89% of total deposits at March 31, 2026.\n\n * Non-performing assets were $51.7 million, or 0.32% of total assets, at March\n31, 2026, compared to $51.2 million, or 0.31% of total assets, at December 31,\n2025, and $42.7 million, or 0.26% of total assets, at March 31, 2025.\n\n * The allowance for credit losses - loans was $160.4 million, or 1.37% of total\nloans receivable, as of March 31, 2026, compared to $160.3 million, or 1.37%\nof total loans receivable, as of December 31, 2025, and $157.3 million, or\n1.38% of total loans receivable, as of March 31, 2025.\n\n * Dividends paid to shareholders were $0.50 per share in the quarter ended March\n31, 2026.\n\n * Common shareholders’ equity per share increased 2% to $58.06 at March 31,\n2026, compared to $57.08 at the preceding quarter end, and increased 9% from\n$53.16 at March 31, 2025.\n\n * Tangible common shareholders’ equity per share* increased 2% to $47.00 at\nMarch 31, 2026, compared to $46.09 at December 31, 2025, and increased 11%\nfrom $42.27 at March 31, 2025.\n\n * Repurchased 250,000 shares of Banner common stock during the first quarter of\n2026 at an average price of $64.56 per share.\n\n*Non-GAAP (Generally Accepted Accounting Principles) financial measure; See,\n“Additional Financial Information - Non-GAAP Financial Measures” on the\nfinal two pages of this press release for a reconciliation of non-GAAP\nfinancial measures.\n\nIncome Statement Review\n\nNet interest income was $150.2 million in the first quarter of 2026, compared\nto $152.4 million in the preceding quarter and $141.1 million in the first\nquarter a year ago. Net interest margin, on a tax equivalent basis, increased\neight basis points to 4.11% for the first quarter of 2026, compared to 4.03%\nin the preceding quarter, and increased 19 basis points from 3.92% in the\nfirst quarter a year ago. The net interest margin for the current quarter\nbenefited from lower funding costs.\n\nInterest income was $197.8 million in the first quarter of 2026, compared to\n$205.0 million in the preceding quarter and $193.9 million in the first\nquarter of 2025. Average yields on interest-earning assets were 5.39% for both\nthe first quarter of 2026 and the preceding quarter. Compared to the first\nquarter a year ago, average yields on interest-earning assets increased by\nfour basis points from 5.35%, primarily due to increases in the average\nbalance of loans. Average loan yields decreased by three basis points to 6.07%\nin the first quarter of 2026, compared to 6.10% in the preceding quarter, and\nwas consistent with 6.07% in the first quarter a year ago.\n\nInterest expense was $47.6 million in the first quarter of 2026, compared to\n$52.5 million in the preceding quarter and $52.8 million in the first quarter\na year ago. Total deposit costs decreased by eight basis points to 1.35% in\nthe first quarter of 2026, compared to 1.43% in the preceding quarter, and\ndecreased by 12 basis points compared to 1.47% in the first quarter a year\nago. The decrease in deposit costs in the current quarter compared to the\nprior quarter was primarily due to a decrease in market interest rates, as\nwell as a lower percentage of interest-bearing deposits being held in higher\ncost certificates of deposits. The decrease in deposit costs in the current\nquarter compared to the same quarter a year ago was primarily due to the\ndecreases in market interest rates, partially offset by an increase in the\naverage balance of interest-bearing deposits. The average rate paid on\nborrowings decreased three basis points to 3.90% in the first quarter of 2026,\ncompared to 3.93% in the preceding quarter, and decreased by 42 basis points\ncompared to 4.32% in the first quarter a year ago. The year-over-year decrease\nwas primarily due to declines in both interest rates paid and the average\nbalance of higher costing FHLB advances. The total cost of funding liabilities\ndecreased nine basis points to 1.38% in the first quarter of 2026, compared to\n1.47% in the preceding quarter, and decreased 17 basis points from 1.55% in\nthe first quarter a year ago, primarily due to deposit interest rate declines.\n\nA $796,000 recapture of provision for credit losses was recorded in the\ncurrent quarter (comprised of a $1.3 million provision for credit losses -\nloans and a $2.1 million recapture of provision for credit losses - unfunded\nloan commitments). This compares to a $2.4 million provision for credit losses\nin the prior quarter (comprised of a $1.5 million provision for credit losses\n- loans and a $945,000 provision for credit losses - unfunded loan\ncommitments) and a $3.1 million provision for credit losses in the first\nquarter a year ago (comprised of a $4.5 million provision for credit losses -\nloans and a $1.4 million recapture of provision for credit losses - unfunded\nloan commitments).\n\nTotal non-interest income was $19.2 million in the first quarter of 2026,\ncompared to $15.2 million in the preceding quarter and $19.1 million in the\nfirst quarter a year ago. The sequential increase was driven primarily by a\n$3.7 million favorable shift in fair value adjustments on financial\ninstruments. This was partially offset by a $1.2 million net loss on the sale\nof securities during the current quarter. Compared to the prior year quarter,\nthe slight increase in non-interest income was primarily attributable to an\nincrease in fair value adjustments on financial instruments carried at fair\nvalue, partially offset by the net loss recognized on the sale of securities\nduring the current quarter.\n\nTotal non-interest expense was $102.6 million in the first quarter of 2026,\ncompared to $104.1 million in the preceding quarter and $101.3 million in the\nfirst quarter of 2025. The decrease from the previous quarter reflected a $1.2\nmillion decrease in occupancy and equipment costs, primarily due to lower rent\nexpense as well as lower building repair and maintenance expenses, a $988,000\ndecrease in professional and legal expenses, primarily due to expenses\nrecognized on a pending legal settlement during the prior quarter and lower\naudit and regulatory exam expenses, and a $1.0 million decrease in advertising\nand marketing expense, primarily due to decreases in direct mail marketing and\ncommunity development expenses. These decreases were partially offset by a\n$2.3 million increase in salary and employee benefits, resulting from\nincreased medical premiums and payroll tax expenses. The increase compared to\nthe same quarter a year ago primarily reflects increases in salary and\nemployee benefits, partially offset by a decrease in occupancy and equipment\ncosts.\n\nBanner’s efficiency ratio was 60.60% for the first quarter of 2026, compared\nto 62.11% in the preceding quarter and 63.21% in the same quarter a year ago.\nBanner’s adjusted efficiency ratio, a non-GAAP financial measure, was 59.45%\nfor the first quarter of 2026, compared to 59.87% in the preceding quarter and\n62.18% in the year-ago quarter. See, “Additional Financial Information -\nNon-GAAP Financial Measures” on the final two pages of this press release\nfor a discussion and reconciliation of non-GAAP financial measures.\n\nBalance Sheet Review\n\nTotal assets were $16.34 billion at March 31, 2026, compared to $16.35 billion\nat December 31, 2025, and $16.17 billion at March 31, 2025. The decrease\ncompared to the prior quarter was primarily due to decreases in both loans\nheld for sale and loans receivable and a reduction in FHLB stock resulting\nfrom the repayment of FHLB advances, partially offset by growth in\ninterest-bearing deposits held at other banks. Securities and interest-bearing\ndeposits held at other banks totaled $3.24 billion at March 31, 2026, compared\nto $3.22 billion at December 31, 2025 and $3.33 billion at March 31, 2025. The\naverage effective duration of the securities portfolio was approximately 6.1\nyears and 6.5 years at March 31, 2026 and March 31, 2025, respectively.\n\nTotal loans receivable were $11.71 billion at March 31, 2026, compared to\n$11.72 billion at December 31, 2025, and increased from $11.44 billion at\nMarch 31, 2025. Commercial real estate loans totaled $4.11 billion at March\n31, 2026, an increase of 2% compared to $4.05 billion at December 31, 2025,\nand an increase of 7% from $3.84 billion at March 31, 2025. The increases from\nboth periods reflected a combination of new loan production and the conversion\nof commercial construction loans to the commercial real estate portfolio upon\ncompletion of the construction phase. Multifamily real estate loans decreased\n6% to $798.2 million at March 31, 2026, compared to $850.8 million at December\n31, 2025, and decreased 9% from $877.7 million at March 31, 2025. The\ndecreases from both periods were primarily due to payoffs and paydowns.\nAgricultural business loans decreased 6% to $332.4 million at March 31, 2026,\ncompared to $353.2 million at December 31, 2025, and decreased from $334.9\nmillion at March 31, 2025. The decrease was primarily due to operating line\npaydowns and payoffs exceeding new production. Consumer loans increased to\n$774.0 million at March 31, 2026, compared to $768.5 million at December 31,\n2025, and increased 8% compared to $717.2 million at March 31, 2025. The\nincreases resulted from both new loan production and advances, primarily\nrelated to home equity revolving lines of credit.\n\nLoans held for sale were $33.8 million at March 31, 2026, compared to $42.9\nmillion at December 31, 2025, and $24.5 million at March 31, 2025. One- to\nfour- family residential mortgage held for sale loans sold in the current\nquarter totaled $132.6 million, compared to $104.2 million in the preceding\nquarter, and $108.1 million in the first quarter a year ago. The decrease in\nloans held for sale at March 31, 2026, compared to the preceding quarter, was\nprimarily attributable to higher sales volumes of one- to four-family\nresidential mortgage loans held for sale during the current quarter. The\nincrease in loans held for sale at March 31, 2026, compared to the prior-year\nquarter, was primarily attributable to increased originations of one- to four-\nfamily residential mortgage loans held for sale.\n\nTotal deposits were $13.84 billion at March 31, 2026, compared to $13.74\nbillion at December 31, 2025, and $13.59 billion a year ago. Core deposits\nincreased to $12.38 billion at March 31, 2026, compared to $12.21 billion at\nDecember 31, 2025, and $12.09 billion at March 31, 2025. The increase compared\nto the preceding quarter primarily reflects increases in non-interest-bearing\ndeposits and interest-bearing transaction and savings accounts. The increase\ncompared to the prior year quarter primarily reflects increases in\ninterest-bearing transaction and savings accounts. Core deposits remained\nstable at 89% of total deposits at March 31, 2026, December 31, 2025 and March\n31, 2025. Certificates of deposit decreased 4% to $1.46 billion at March 31,\n2026, compared to $1.53 billion at December 31, 2025, and decreased 3% from\n$1.50 billion a year earlier.\n\nThere were no outstanding FHLB advances at March 31, 2026, compared to $150.0\nmillion at December 31, 2025, and $168.0 million a year ago, as the increase\nin core deposits was used to pay off FHLB advances during the current quarter.\nAt March 31, 2026, off-balance sheet liquidity included additional borrowing\ncapacity of $3.76 billion at the FHLB and $1.74 billion at the Federal\nReserve, as well as federal funds line of credit agreements with other\nfinancial institutions of $125.0 million.\n\nAt March 31, 2026, total common shareholders’ equity was $1.97 billion, or\n12.03% of total assets, compared to $1.95 billion, or 11.90% of total assets\nat December 31, 2025, and $1.83 billion, or 11.34% of total assets at March\n31, 2025. The increase in total common shareholders’ equity from December\n31, 2025, was primarily attributable to a $37.4 million increase in retained\nearnings resulting from $54.7 million in net income, partially offset by the\naccrual of $17.3 million in cash dividends during the first quarter of 2026.\nIn addition, Banner repurchased 250,000 shares of its common stock in the\nfirst quarter of 2026 at an average price of $64.56 per share. At March 31,\n2026, tangible common shareholders’ equity, a non-GAAP financial measure,\nwas $1.59 billion, or 9.97% of tangible assets, compared to $1.57 billion, or\n9.84% of tangible assets, at December 31, 2025, and $1.46 billion, or 9.23% of\ntangible assets, a year ago. See “Additional Financial Information -\nNon-GAAP Financial Measures” on the final two pages of this press release\nfor a reconciliation of non-GAAP financial measures.\n\nBanner and Banner Bank continue to maintain capital levels in excess of the\nrequirements to be categorized as “well-capitalized.” At March 31, 2026,\nBanner’s estimated common equity Tier 1 capital ratio was 12.97%, its\nestimated Tier 1 leverage capital to average assets ratio was 11.68%, and its\nestimated total capital to risk-weighted assets ratio was 14.85%. These\nregulatory capital ratios are estimates, pending completion and filing of\nBanner’s regulatory reports.\n\nCredit Quality\n\nThe allowance for credit losses - loans was $160.4 million, or 1.37% of total\nloans receivable and 353% of non-performing loans, at March 31, 2026, compared\nto $160.3 million, or 1.37% of total loans receivable and 351% of\nnon-performing loans, at December 31, 2025, and $157.3 million, or 1.38% of\ntotal loans receivable and 404% of non-performing loans, at March 31, 2025.\nThe allowance ratio remained stable compared to both prior periods, reflecting\nconsistent portfolio composition and credit performance. Coverage of\nnon-performing loans remained strong at 353% at March 31, 2026, compared to\n351% at December 31, 2025. The year-over-year decline from 404% at March 31,\n2025 reflects moderate growth in non-performing loans over the past year, from\n$39.0 million to $45.4 million, while the allowance level has remained stable\nand commensurate with the portfolio’s risk profile. In addition to the\nallowance for credit losses - loans, Banner maintains an allowance for credit\nlosses - unfunded loan commitments, which was $12.9 million at March 31, 2026,\ncompared to $15.0 million at December 31, 2025, and $12.2 million at March 31,\n2025. Net loan charge-offs remained low at $1.2 million in the first quarter\nof 2026, compared to net loan charge-offs of $934,000 and $2.7 million in the\npreceding quarter and first quarter a year ago, respectively. Non-performing\nloans were $45.4 million at March 31, 2026, compared to $45.6 million at\nDecember 31, 2025, and $39.0 million a year ago. Substandard loans were $235.0\nmillion as of March 31, 2026, compared to $193.1 million as of December 31,\n2025, and $197.8 million a year ago. Total non-performing assets were $51.7\nmillion, or 0.32% of total assets, at March 31, 2026, compared to $51.2\nmillion, or 0.31% of total assets, at December 31, 2025, and $42.7 million, or\n0.26% of total assets, a year ago.\n\nConference Call\n\nBanner will host a conference call on Thursday, April 23, 2026, at 8:00 a.m.\nPDT, to discuss its first quarter results. Interested investors may listen to\nthe call live at www.bannerbank.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bannerbank.com&esheet=54520183&newsitemid=20260422026633&lan=en-US&anchor=www.bannerbank.com&index=1&md5=02b1f8ed0b171b6048d0851dd1385243)\n. Investment professionals are invited to dial (800) 715-9871 to participate\nin the call. A replay of the call will be available at www.bannerbank.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bannerbank.com&esheet=54520183&newsitemid=20260422026633&lan=en-US&anchor=www.bannerbank.com&index=2&md5=6c8b5e63e4afe480317517f23a9bb6a6)\n.\n\nAbout the Company\n\nBanner Corporation is a $16.34 billion bank holding company operating a\ncommercial bank primarily in Washington, Oregon, California and Idaho through\na network of branches offering a full range of deposit services and business,\ncommercial real estate, construction, residential, agricultural and consumer\nloans. Visit Banner Bank on the Web at www.bannerbank.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bannerbank.com&esheet=54520183&newsitemid=20260422026633&lan=en-US&anchor=www.bannerbank.com&index=3&md5=390f08595888c9aeea65f491a65e8632)\n.\n\nForward-Looking Statements\n\nWhen used in this press release and in other documents filed with or furnished\nto the Securities and Exchange Commission (the “SEC”), in press releases\nor other public stockholder communications, or in oral statements made with\nthe approval of an authorized executive officer, the words or phrases\n“may,” “believe,” “will,” “will likely result,” “are\nexpected to,” “will continue,” “is anticipated,” “estimate,”\n“project,” “plans,” “potential,” or similar expressions are\nintended to identify “forward-looking statements” within the meaning of\nthe Private Securities Litigation Reform Act of 1995. You are cautioned not to\nplace undue reliance on any forward-looking statements, which speak only as of\nthe date such statements are made and based only on information then actually\nknown to Banner. Banner does not undertake and specifically disclaims any\nobligation to revise any forward-looking statements to reflect the occurrence\nof anticipated or unanticipated events or circumstances after the date of such\nstatements.\n\nForward-looking statements may relate to, among other things, future financial\nperformance, strategic plans or objectives, revenues or earnings projections,\nand other financial or operational information. These statements are\ninherently subject to numerous risks and uncertainties, including ongoing\nmarket volatility and evolving global conditions, which may cause actual\nresults to differ materially from those expressed or implied. These factors\ninclude, but are not limited to: (1) adverse impacts to economic conditions in\nour local market areas, other markets where the Company has lending\nrelationships, or other aspects of the Company’s business operations or\nfinancial markets, including, without limitation, as a result of labor\nshortages, elevated inflation, recessionary pressures, or slowing economic\ngrowth; (2) changes in interest rate levels, volatility, and the timing and\npace of such changes, including actions by the Federal Reserve, which could\nmaterially affect our net interest margin, funding costs, asset values, access\nto capital and liquidity; (3) the impact of inflation and monetary and fiscal\npolicy responses thereto, and their impact on consumer and business behavior;\n(4) geopolitical developments and international conflicts, including but not\nlimited to tensions or instability in Eastern Europe, South America, the\nMiddle East, and Asia, or the imposition of new or increased tariffs and trade\nrestrictions, which may disrupt financial markets, global supply chains,\ncommodity prices, or economic activity in specific industry sectors,\nincluding, but not limited to, agriculture-based lending; (5) the effects of a\nfederal government shutdown, debt ceiling standoff, or other fiscal policy\nuncertainty; (6) the impact of bank failures or adverse developments at other\nbanks and related negative publicity about the banking industry in general on\ninvestor and depositor sentiment; (7) expectations regarding key growth\ninitiatives and strategic priorities; (8) credit risks from lending\nactivities, including changes in the level and direction of loan delinquencies\nand write-offs and changes in estimates of the adequacy of the allowance for\ncredit losses, which could necessitate additional provisions for credit\nlosses, resulting both from loans originated and loans acquired from other\nfinancial institutions; (9) results of examinations by regulatory authorities,\nwhich could result in the imposition of penalties, required changes to our\nbusiness practices, or additional reserves; (10) competitive pressures among\ndepository and non-depository institutions that adversely affect pricing,\nmarket share, deposit flows or product offerings; (11) fluctuations in real\nestate values; (12) the ability to adapt to rapid technological changes,\nincluding advancements in artificial intelligence, digital banking platforms,\nand cybersecurity; (13) vulnerabilities in information systems or third-party\nservice providers, including disruptions, breaches, or attacks; (14) market\nvolatility or deterioration in capital markets affecting liquidity,\nvaluations, or investor confidence; (15) the costs, effects and outcomes of\nlitigation or other legal proceedings involving the Company; (16) legislation\nor regulatory changes, including but not limited to shifts in capital\nrequirements, banking regulation, tax laws, or consumer protection laws; (17)\nclimate-related risks and natural disasters, which may affect loan collateral,\noperations, or compliance obligations; (18) changes in accounting principles,\npolicies or guidelines; (19) the impact of future acquisitions or business\ncombinations, including related goodwill impairment risks and integration\nchallenges; (20) effects of critical accounting policies and judgments,\nincluding the use of estimates in determining fair value of certain of our\nassets, which estimates may prove to be incorrect and result in significant\ndeclines in valuation; (21) other economic, competitive, governmental,\nregulatory, and technological factors affecting our operations, pricing,\nproducts and services; and (22) other risks detailed from time to time in\nBanner’s other reports filed with and furnished to the Securities and\nExchange Commission including Banner’s Quarterly Reports on Form 10-Q and\nAnnual Reports on Form 10-K.\n RESULTS OF OPERATIONS   Quarters Ended \n (in thousands except shares and per share data)   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n INTEREST INCOME:             \n Loans receivable   $ 173,703     $ 178,908     $ 168,677   \n Mortgage-backed securities     14,316       14,750       15,744   \n Securities and cash equivalents     9,799       11,322       9,447   \n Total interest income     197,818       204,980       193,868   \n INTEREST EXPENSE:             \n Deposits     45,678       50,494       48,737   \n Federal Home Loan Bank (FHLB) advances     40       17       860   \n Other borrowings     697       693       694   \n Subordinated debt     1,234       1,328       2,494   \n Total interest expense     47,649       52,532       52,785   \n Net interest income     150,169       152,448       141,083   \n (RECAPTURE) PROVISION FOR CREDIT LOSSES     (796 )     2,441       3,139   \n Net interest income after (recapture) provision for credit losses     150,965       150,007       137,944   \n NON-INTEREST INCOME:             \n Deposit fees and other service charges     11,391       10,681       10,769   \n Mortgage banking operations     3,212       3,617       3,103   \n Bank-owned life insurance     2,312       2,491       2,575   \n Miscellaneous     1,826       446       2,346   \n       18,741       17,235       18,793   \n Net loss on sale of securities     (1,242 )     —       —   \n Net change in valuation of financial instruments carried at fair value     1,662       (2,010 )     315   \n Total non-interest income     19,161       15,225       19,108   \n NON-INTEREST EXPENSE:             \n Salary and employee benefits     67,732       65,428       64,857   \n Less capitalized loan origination costs     (3,886 )     (4,163 )     (3,330 ) \n Occupancy and equipment     10,697       11,852       12,097   \n Information and computer data services     8,313       9,041       7,628   \n Payment and card processing services     6,041       6,239       5,750   \n Professional and legal expenses     1,613       2,601       2,430   \n Advertising and marketing     673       1,676       590   \n Deposit insurance     2,717       2,850       2,797   \n State and municipal business and use taxes     1,820       1,751       1,454   \n Real estate operations, net     109       (43 )     (61 ) \n Amortization of core deposit intangibles     256       315       456   \n Miscellaneous     6,523       6,598       6,591   \n Total non-interest expense     102,608       104,145       101,259   \n Income before provision for income taxes     67,518       61,087       55,793   \n PROVISION FOR INCOME TAXES     12,802       9,838       10,658   \n NET INCOME   $ 54,716     $ 51,249     $ 45,135   \n Earnings per common share:             \n Basic   $ 1.61     $ 1.50     $ 1.31   \n Diluted   $ 1.60     $ 1.49     $ 1.30   \n Cumulative dividends declared per common share   $ 0.50     $ 0.50     $ 0.48   \n Weighted average number of common shares outstanding:             \n Basic     34,039,234       34,214,220       34,509,815   \n Diluted     34,254,587       34,408,587       34,778,687   \n\n FINANCIAL CONDITION               Percentage Change \n (in thousands except shares and per share data)   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n ASSETS                     \n Cash and due from banks   $ 180,158     $ 182,772     $ 213,574     (1 )%   (16 )% \n Interest-bearing deposits     259,081       239,868       228,371     8 %   13 % \n Total cash and cash equivalents     439,239       422,640       441,945     4 %   (1 )% \n Securities - available for sale, amortized cost $2,294,225, $2,271,471 and     2,035,021       2,016,261       2,108,945     1 %   (4 )% \n $2,426,395, respectively \n Securities - held to maturity, fair value $791,763, $814,668 and $819,261,     943,688       961,196       991,796     (2 )%   (5 )% \n respectively \n Total securities     2,978,709       2,977,457       3,100,741     — %   (4 )% \n FHLB stock     9,809       16,476       17,286     (40 )%   (43 )% \n Loans held for sale     33,778       42,902       24,536     (21 )%   38 % \n Loans receivable     11,707,626       11,721,687       11,438,796     — %   2 % \n Allowance for credit losses – loans     (160,352 )     (160,276 )     (157,323 )   — %   2 % \n Net loans receivable     11,547,274       11,561,411       11,281,473     — %   2 % \n Accrued interest receivable     63,736       60,525       63,987     5 %   — % \n Property and equipment, net     108,303       111,522       119,649     (3 )%   (9 )% \n Goodwill     373,121       373,121       373,121     — %   — % \n Other intangibles, net     1,235       1,491       2,602     (17 )%   (53 )% \n Bank-owned life insurance     321,660       319,347       313,942     1 %   2 % \n Operating lease right-of-use assets     31,056       32,736       37,134     (5 )%   (16 )% \n Other assets     436,352       434,860       394,396     — %   11 % \n Total assets   $ 16,344,272     $ 16,354,488     $ 16,170,812     — %   1 % \n LIABILITIES                     \n Deposits:                     \n Non-interest-bearing   $ 4,532,639     $ 4,489,839     $ 4,571,598     1 %   (1 )% \n Interest-bearing transaction and savings accounts     7,842,911       7,721,003       7,517,617     2 %   4 % \n Interest-bearing certificates     1,464,814       1,532,304       1,504,050     (4 )%   (3 )% \n Total deposits     13,840,364       13,743,146       13,593,265     1 %   2 % \n Advances from FHLB     —       150,000       168,000     (100 )%   (100 )% \n Other borrowings     115,723       107,715       130,588     7 %   (11 )% \n Subordinated notes, net     —       —       80,389     — %   (100 )% \n Junior subordinated debentures at fair value     79,472       79,151       67,711     — %   17 % \n Operating lease liabilities     33,794       35,755       40,466     (5 )%   (16 )% \n Accrued expenses and other liabilities     261,295       245,266       210,771     7 %   24 % \n Deferred compensation     46,990       47,158       46,169     — %   2 % \n Total liabilities     14,377,638       14,408,191       14,337,359     — %   — % \n SHAREHOLDERS’ EQUITY                     \n Common stock     1,268,298       1,282,505       1,308,967     (1 )%   (3 )% \n Retained earnings     909,222       871,803       772,412     4 %   18 % \n Accumulated other comprehensive loss     (210,886 )     (208,011 )     (247,926 )   1 %   (15 )% \n Total shareholders’ equity     1,966,634       1,946,297       1,833,453     1 %   7 % \n Total liabilities and shareholders’ equity   $ 16,344,272     $ 16,354,488     $ 16,170,812     — %   1 % \n Common Shares Issued:                     \n Shares outstanding at end of period     33,875,098       34,097,856       34,489,972           \n Common shareholders’ equity per share ((1))   $ 58.06     $ 57.08     $ 53.16           \n Common shareholders’ tangible equity per share ((1) (2))   $ 47.00     $ 46.09     $ 42.27           \n Common shareholders’ equity to total assets     12.03 %     11.90 %     11.34 %         \n Common shareholders’ tangible equity to tangible assets ((2))     9.97 %     9.84 %     9.23 %         \n Consolidated Tier 1 leverage capital ratio     11.68 %     11.41 %     11.22 %         \n\n (1) Calculation is based on number of common shares outstanding at the end of the \n period rather than weighted average shares outstanding. \n (2) Common shareholders’ tangible equity and tangible assets exclude goodwill \n and other intangible assets. These ratios represent non-GAAP financial \n measures. See, “Additional Financial Information - Non-GAAP Financial \n Measures” on the final two pages of this press release for a reconciliation \n of non-GAAP financial measures. \n\n ADDITIONAL FINANCIAL INFORMATION                     \n (dollars in thousands)                     \n                       \n LOANS               Percentage Change \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n Commercial real estate (CRE):                     \n Owner-occupied   $ 1,176,035     $ 1,138,298     $ 1,020,829     3 %   15 % \n Investment properties     1,719,220       1,701,413       1,598,387     1 %   8 % \n Small balance CRE     1,218,388       1,212,357       1,217,458     — %   — % \n Multifamily real estate     798,230       850,789       877,716     (6 )%   (9 )% \n Construction, land and land development:                     \n Commercial construction     174,761       156,021       146,467     12 %   19 % \n Multifamily construction     502,166       514,330       618,942     (2 )%   (19 )% \n One- to four-family construction     617,233       607,447       504,265     2 %   22 % \n Land and land development     400,959       433,678       396,009     (8 )%   1 % \n Commercial business:                     \n Commercial business     1,231,154       1,225,108       1,283,754     — %   (4 )% \n Small business scored     1,199,913       1,187,360       1,122,550     1 %   7 % \n Agricultural business, including secured by farmland:                     \n Agricultural business, including secured by farmland     332,440       353,152       334,899     (6 )%   (1 )% \n One- to four-family residential     1,563,088       1,573,191       1,600,283     (1 )%   (2 )% \n Consumer:                     \n Consumer—home equity revolving lines of credit     682,692       679,489       620,483     — %   10 % \n Consumer—other     91,347       89,054       96,754     3 %   (6 )% \n Total loans receivable   $ 11,707,626     $ 11,721,687     $ 11,438,796     — %   2 % \n Loans 30 - 89 days past due and on accrual   $ 30,177     $ 26,767     $ 37,339           \n Total delinquent loans (including loans on non-accrual), net   $ 65,632     $ 63,093     $ 71,927           \n Total delinquent loans / Total loans receivable     0.56 %     0.54 %     0.63 %         \n\n LOANS BY GEOGRAPHIC LOCATION                   Percentage Change \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n     Amount   Percentage   Amount   Amount         \n Washington   $ 5,313,022   45 %   $ 5,371,200   $ 5,260,906   (1 )%   1 % \n California     3,159,842   27 %     3,105,405     2,927,835   2 %   8 % \n Oregon     2,166,750   18 %     2,159,404     2,122,953   — %   2 % \n Idaho     690,608   6 %     667,343     665,625   3 %   4 % \n Utah     77,046   1 %     82,594     88,858   (7 )%   (13 )% \n Other     300,358   3 %     335,741     372,619   (11 )%   (19 )% \n Total loans receivable   $ 11,707,626   100 %   $ 11,721,687   $ 11,438,796   — %   2 % \n\n ADDITIONAL FINANCIAL INFORMATION \n (dollars in thousands) \n   \n LOAN ORIGINATIONS Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Commercial real estate $ 220,193   $ 136,604   $ 37,041 \n Multifamily real estate   3,869     4,300     9,555 \n Construction and land   323,941     362,199     287,565 \n Commercial business   168,324     219,592     103,739 \n Agricultural business   22,562     28,815     12,765 \n One-to four-family residential   13,416     7,219     5,139 \n Consumer   110,913     108,578     80,030 \n Total loan originations (excluding loans held for sale) $ 863,218   $ 867,307   $ 535,834 \n\n ADDITIONAL FINANCIAL INFORMATION             \n (dollars in thousands)             \n               \n CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS   Quarters Ended \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Balance, beginning of period   $ 160,276     $ 159,707     $ 155,521   \n Provision for credit losses – loans     1,292       1,503       4,549   \n Recoveries of loans previously charged off:             \n Commercial real estate     11       48       57   \n Construction and land     4       4       —   \n One- to four-family real estate     13       14       188   \n Commercial business     81       93       557   \n Agricultural business, including secured by farmland     4       68       10   \n Consumer     140       83       119   \n       253       310       931   \n Loans charged off:             \n One- to four-family real estate     —       —       (13 ) \n Commercial business     (863 )     (837 )     (3,301 ) \n Consumer     (606 )     (407 )     (364 ) \n       (1,469 )     (1,244 )     (3,678 ) \n Net charge-offs     (1,216 )     (934 )     (2,747 ) \n Balance, end of period   $ 160,352     $ 160,276     $ 157,323   \n Net charge-offs / average loans receivable     (0.010 )%     (0.008 )%     (0.024 )% \n\n ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Commercial real estate   $ 41,788     $ 41,599     $ 40,076   \n Multifamily real estate     9,201       9,805       10,109   \n Construction and land     34,589       35,508       32,042   \n One- to four-family real estate     19,640       19,552       20,752   \n Commercial business     39,452       37,785       38,665   \n Agricultural business, including secured by farmland     4,930       5,567       5,641   \n Consumer     10,752       10,460       10,038   \n Total allowance for credit losses – loans   $ 160,352     $ 160,276     $ 157,323   \n Allowance for credit losses - loans / Total loans receivable     1.37 %     1.37 %     1.38 % \n Allowance for credit losses - loans / Non-performing loans     353 %     351 %     404 % \n\n CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Balance, beginning of period $ 14,985     $ 14,040   $ 13,562   \n (Recapture) provision for credit losses - unfunded loan commitments   (2,082 )     945     (1,400 ) \n Balance, end of period $ 12,903     $ 14,985   $ 12,162   \n\n ADDITIONAL FINANCIAL INFORMATION           \n (dollars in thousands)           \n             \n NON-PERFORMING ASSETS Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Loans on non-accrual status:           \n Secured by real estate:           \n Commercial $ 2,027     $ 525     $ 2,182   \n Construction and land   4,321       5,175       4,359   \n One- to four-family   20,945       19,855       10,448   \n Commercial business   6,988       6,751       6,425   \n Agricultural business, including secured by farmland   5,511       4,609       10,301   \n Consumer   4,214       4,610       4,874   \n     44,006       41,525       38,589   \n Loans more than 90 days delinquent, still on accrual:           \n Secured by real estate:           \n Construction and land   —       1,268       —   \n One- to four-family   636       2,698       9   \n Commercial business   —       —       206   \n Consumer   795       148       155   \n     1,431       4,114       370   \n Total non-performing loans   45,437       45,639       38,959   \n REO   6,248       5,578       3,468   \n Other repossessed assets   —       18       300   \n Total non-performing assets $ 51,685     $ 51,235     $ 42,727   \n Total non-performing assets to total assets   0.32 %     0.31 %     0.26 % \n\n LOANS BY CREDIT RISK RATING Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Pass $ 11,416,687   $ 11,446,550   $ 11,207,852 \n Special Mention   55,981     82,060     33,133 \n Substandard   234,958     193,077     197,811 \n Total $ 11,707,626   $ 11,721,687   $ 11,438,796 \n\n ADDITIONAL FINANCIAL INFORMATION                     \n (dollars in thousands)                     \n                       \n DEPOSIT COMPOSITION               Percentage Change \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n Non-interest-bearing   $ 4,532,639   $ 4,489,839   $ 4,571,598   1 %   (1 )% \n Interest-bearing checking     2,628,731     2,609,080     2,431,279   1 %   8 % \n Regular savings accounts     3,859,530     3,723,922     3,542,005   4 %   9 % \n Money market accounts     1,354,650     1,388,001     1,544,333   (2 )%   (12 )% \n Total interest-bearing transaction and savings accounts     7,842,911     7,721,003     7,517,617   2 %   4 % \n Total core deposits     12,375,550     12,210,842     12,089,215   1 %   2 % \n Interest-bearing certificates     1,464,814     1,532,304     1,504,050   (4 )%   (3 )% \n Total deposits   $ 13,840,364   $ 13,743,146   $ 13,593,265   1 %   2 % \n\n GEOGRAPHIC CONCENTRATION OF DEPOSITS   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Percentage Change \n     Amount   Percentage   Amount   Amount   Prior Qtr   Prior Yr Qtr \n Washington   $ 7,429,406   54 %   $ 7,500,215   $ 7,394,201   (1 )%   — % \n Oregon     3,125,040   23 %     3,035,104     3,045,078   3 %   3 % \n California     2,558,466   18 %     2,483,948     2,463,012   3 %   4 % \n Idaho     727,452   5 %     723,879     690,974   — %   5 % \n Total deposits   $ 13,840,364   100 %   $ 13,743,146   $ 13,593,265   1 %   2 % \n\n INCLUDED IN TOTAL DEPOSITS   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Public non-interest-bearing accounts   $ 146,846   $ 138,860   $ 146,390 \n Public interest-bearing transaction & savings accounts     237,776     234,669     239,707 \n Public interest-bearing certificates     36,125     34,431     24,226 \n Total public deposits   $ 420,747   $ 407,960   $ 410,323 \n Collateralized public deposits   $ 325,675   $ 312,310   $ 313,445 \n Total brokered deposits   $ —   $ 50,002   $ 75,321 \n               \n AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Number of deposit accounts     444,250     445,989     453,808 \n Average account balance per account   $ 32   $ 31   $ 30 \n\n ADDITIONAL FINANCIAL INFORMATION                         \n (dollars in thousands)                         \n ESTIMATED REGULATORY CAPITAL RATIOS AS OF MARCH 31, 2026   Actual   Minimum to be categorized as \"Adequately Capitalized\"   Minimum to be categorized as \"Well Capitalized\" \n     Amount   Ratio   Amount   Ratio   Amount   Ratio \n                           \n Banner Corporation-consolidated:                         \n Total capital to risk-weighted assets   $ 2,055,876   14.85 %   $ 1,107,753   8.00 %   $ 1,384,692   10.00 % \n Tier 1 capital to risk-weighted assets     1,882,784   13.60 %     830,815   6.00 %     830,815   6.00 % \n Tier 1 leverage capital to average assets     1,882,784   11.68 %     644,575   4.00 %     n/a   n/a   \n Common equity tier 1 capital to risk-weighted assets     1,796,284   12.97 %     623,111   4.50 %     n/a   n/a   \n Banner Bank:                         \n Total capital to risk-weighted assets     1,959,652   14.16 %     1,107,375   8.00 %     1,384,219   10.00 % \n Tier 1 capital to risk-weighted assets     1,786,618   12.91 %     830,531   6.00 %     1,107,375   8.00 % \n Tier 1 leverage capital to average assets     1,786,618   11.09 %     644,332   4.00 %     805,415   5.00 % \n Common equity tier 1 capital to risk-weighted assets     1,786,618   12.91 %     622,898   4.50 %     899,742   6.50 % \n\n These regulatory capital ratios are estimates, pending completion and filing \n of Banner’s regulatory reports. \n\n ADDITIONAL FINANCIAL INFORMATION                                   \n (dollars in thousands)                                   \n (rates / ratios annualized)                                   \n ANALYSIS OF NET INTEREST SPREAD Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n   Average Balance   Interest and Dividends   Yield / Cost ((3))   Average Balance   Interest and Dividends   Yield / Cost ((3))   Average Balance   Interest and Dividends   Yield / Cost ((3)) \n Interest-earning assets:                                   \n Held for sale loans $ 26,051   $ 381     5.93 %   $ 31,892   $ 487     6.06 %   $ 22,457   $ 357     6.45 % \n Real estate secured loans   9,754,431     144,369     6.00 %     9,759,170     148,310     6.03 %     9,366,213     137,724     5.96 % \n Commercial/agricultural loans   1,853,248     29,153     6.38 %     1,877,966     30,430     6.43 %     1,907,212     30,752     6.54 % \n Consumer and other loans   116,147     2,040     7.12 %     119,212     2,076     6.91 %     121,492     2,092     6.98 % \n Total loans ((1))   11,749,877     175,943     6.07 %     11,788,240     181,303     6.10 %     11,417,374     170,925     6.07 % \n Mortgage-backed securities   2,326,123     14,509     2.53 %     2,379,784     14,943     2.49 %     2,542,983     15,895     2.53 % \n Other securities   878,650     9,040     4.17 %     869,066     9,141     4.17 %     902,732     9,687     4.35 % \n Interest-bearing deposits with banks   184,204     1,518     3.34 %     293,188     2,786     3.77 %     65,758     484     2.99 % \n FHLB stock   9,912     148     6.06 %     9,849     300     12.08 %     12,804     149     4.72 % \n Total investment securities   3,398,889     25,215     3.01 %     3,551,887     27,170     3.03 %     3,524,277     26,215     3.02 % \n Total interest-earning assets   15,148,766     201,158     5.39 %     15,340,127     208,473     5.39 %     14,941,651     197,140     5.35 % \n Non-interest-earning assets   1,106,533             1,081,392             1,006,497         \n Total assets $ 16,255,299           $ 16,421,519           $ 15,948,148         \n Deposits:                                   \n Interest-bearing checking accounts $ 2,631,917     9,273     1.43 %   $ 2,671,378     10,550     1.57 %   $ 2,381,106     8,537     1.45 % \n Savings accounts   3,792,427     18,388     1.97 %     3,739,496     19,623     2.08 %     3,450,908     18,103     2.13 % \n Money market accounts   1,387,870     6,151     1.80 %     1,430,674     6,926     1.92 %     1,555,262     7,860     2.05 % \n Certificates of deposit   1,481,349     11,866     3.25 %     1,539,845     13,395     3.45 %     1,531,428     14,237     3.77 % \n Total interest-bearing deposits   9,293,563     45,678     1.99 %     9,381,393     50,494     2.14 %     8,918,704     48,737     2.22 % \n Non-interest-bearing deposits   4,470,629     —     — %     4,584,612     —     — %     4,526,596     —     — % \n Total deposits   13,764,192     45,678     1.35 %     13,966,005     50,494     1.43 %     13,445,300     48,737     1.47 % \n Other interest-bearing liabilities:                                   \n FHLB advances   4,089     40     3.97 %     1,630     17     4.14 %     75,300     860     4.63 % \n Other borrowings   111,569     697     2.53 %     114,685     693     2.40 %     134,761     694     2.09 % \n Junior subordinated debentures and subordinated notes   89,178     1,234     5.61 %     89,178     1,328     5.91 %     169,678     2,494     5.96 % \n Total borrowings   204,836     1,971     3.90 %     205,493     2,038     3.93 %     379,739     4,048     4.32 % \n Total funding liabilities   13,969,028     47,649     1.38 %     14,171,498     52,532     1.47 %     13,825,039     52,785     1.55 % \n Other non-interest-bearing liabilities ((2))   320,808             324,492             324,031         \n Total liabilities   14,289,836             14,495,990             14,149,070         \n Shareholders’ equity   1,965,463             1,925,529             1,799,078         \n Total liabilities and shareholders’ equity $ 16,255,299           $ 16,421,519           $ 15,948,148         \n Net interest income/rate spread (tax equivalent)       153,509     4.01 %         155,941     3.92 %         144,355     3.80 % \n Net interest margin (tax equivalent)         4.11 %           4.03 %           3.92 % \n Reconciliation to reported net interest income:                                   \n Adjustments for taxable equivalent basis       (3,340 )             (3,493 )             (3,272 )     \n Net interest income and margin, as reported     $ 150,169     4.02 %       $ 152,448     3.94 %       $ 141,083     3.83 % \n Additional Key Financial Ratios:                                   \n Return on average assets         1.37 %           1.24 %           1.15 % \n Adjusted return on average assets ((4))         1.36 %           1.29 %           1.14 % \n Return on average equity         11.29 %           10.56 %           10.17 % \n Adjusted return on average equity ((4))         11.23 %           10.97 %           10.12 % \n Return on average tangible common equity ((4))         14.00 %           13.17 %           12.96 % \n Average equity/average assets         12.09 %           11.73 %           11.28 % \n Average interest-earning assets/average interest-bearing liabilities         159.49 %           160.01 %           160.69 % \n Average interest-earning assets/average funding liabilities         108.45 %           108.25 %           108.08 % \n Non-interest income/average assets         0.48 %           0.37 %           0.49 % \n Non-interest expense/average assets         2.56 %           2.52 %           2.57 % \n Efficiency ratio         60.60 %           62.11 %           63.21 % \n Adjusted efficiency ratio ((4))         59.45 %           59.87 %           62.18 % \n\n ((1)) Average balances include loans accounted for on a nonaccrual basis and \n accruing loans 90 days or more past due. Amortization of net deferred loan \n fees/costs is included with interest on loans. \n ((2)) Average other non-interest-bearing liabilities include fair value adjustments \n related to junior subordinated debentures. \n ((3)) Tax-exempt income is calculated on a tax equivalent basis, which Banner \n believes provides comparability of net interest income and net interest margin \n arising from both taxable and tax-exempt sources and is consistent with \n industry practice. The tax equivalent yield adjustment to interest earned on \n loans was $2.2 million, $2.4 million and $2.2 million for the quarters ended \n March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The tax \n equivalent yield adjustment to interest earned on tax exempt securities was \n $1.1 million for both the quarters ended March 31, 2026 and December 31, 2025 \n and $1.0 million for the quarter ended March 31, 2025. \n ((4)) Represent non-GAAP financial measures. See, “Additional Financial \n Information - Non-GAAP Financial Measures” on the final two pages of this \n press release for a reconciliation of non-GAAP financial measures. \n\n ADDITIONAL FINANCIAL INFORMATION           \n (dollars in thousands)           \n             \n * Non-GAAP Financial Measures           \n In addition to results presented in accordance with generally accepted \n accounting principles in the United States of America (GAAP), this earnings \n release contains certain non-GAAP financial measures. Tangible common \n shareholders’ equity per share, the ratio of tangible common equity to \n tangible assets and the return on average tangible common equity, and \n references to adjusted revenue, adjusted earnings, the adjusted return on \n average assets, the adjusted return on average equity and the adjusted \n efficiency ratio represent non-GAAP financial measures. Management has \n presented these non-GAAP financial measures in this earnings release because \n it believes that they provide useful and comparative information to assess \n trends in Banner’s core operations reflected in the current quarter’s \n results and facilitate the comparison of our performance with the performance \n of our peers. However, these non-GAAP financial measures are supplemental and \n are not a substitute for any analysis based on GAAP. Where applicable, \n comparable earnings information using GAAP financial measures is also \n presented. Because not all companies use the same calculations, our \n presentation may not be comparable to other similarly titled measures as \n calculated by other companies. For a reconciliation of these non-GAAP \n financial measures, see the tables below: \n             \n ADJUSTED REVENUE Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Net interest income (GAAP) $ 150,169     $ 152,448   $ 141,083   \n Non-interest income (GAAP)   19,161       15,225     19,108   \n Total revenue (GAAP)   169,330       167,673     160,191   \n Exclude: Net loss on sale of securities   1,242       —     —   \n Net change in valuation of financial instruments carried at fair value   (1,662 )     2,010     (315 ) \n Losses incurred on building and lease exits   —       169     —   \n Adjusted revenue (non-GAAP) $ 168,910     $ 169,852   $ 159,876   \n\n ADJUSTED EARNINGS Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Net income (GAAP) $ 54,716     $ 51,249     $ 45,135   \n Exclude: Net loss on sale of securities   1,242       —       —   \n Net change in valuation of financial instruments carried at fair value   (1,662 )     2,010       (315 ) \n Building and lease exit costs   9       603       —   \n Related net tax expense (benefit)   99       (627 )     76   \n Total adjusted earnings (non-GAAP) $ 54,404     $ 53,235     $ 44,896   \n             \n Diluted earnings per share (GAAP) $ 1.60     $ 1.49     $ 1.30   \n Diluted adjusted earnings per share (non-GAAP) $ 1.59     $ 1.55     $ 1.29   \n Return on average assets   1.37 %     1.24 %     1.15 % \n Adjusted return on average assets ((1))   1.36 %     1.29 %     1.14 % \n Return on average equity   11.29 %     10.56 %     10.17 % \n Adjusted return on average equity ((2))   11.23 %     10.97 %     10.12 % \n             \n AVERAGE TANGIBLE COMMON EQUITY Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Net Income (GAAP) $ 54,716     $ 51,249     $ 45,135   \n Exclude: Amortization of intangibles, net of tax $ 202     $ 249     $ 360   \n Tangible net income available to common shareholders (non-GAAP) $ 54,918     $ 51,498     $ 45,495   \n             \n Average common shareholder’s equity $ 1,965,463     $ 1,925,529     $ 1,799,078   \n Exclude: Average goodwill and other intangible assets, net   374,477       374,764       375,943   \n Average tangible common equity $ 1,590,986     $ 1,550,765     $ 1,423,135   \n             \n Return on average tangible common equity ((3))   14.00 %     13.17 %     12.96 % \n\n ((1)) Adjusted earnings (non-GAAP) divided by average assets. \n ((2)) Adjusted earnings (non-GAAP) divided by average equity. \n ((3)) Tangible net income (non-GAAP) divided by average tangible common equity \n (non-GAAP). \n\n ADDITIONAL FINANCIAL INFORMATION             \n (dollars in thousands)             \n ADJUSTED EFFICIENCY RATIO   Quarters Ended \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Non-interest expense (GAAP)   $ 102,608     $ 104,145     $ 101,259   \n Exclude: CDI amortization     (256 )     (315 )     (456 ) \n State/municipal tax expense     (1,820 )     (1,751 )     (1,454 ) \n REO operations     (109 )     43       61   \n Building and lease exit costs     (9 )     (434 )     —   \n Adjusted non-interest expense (non-GAAP)   $ 100,414     $ 101,688     $ 99,410   \n               \n Net interest income (GAAP)   $ 150,169     $ 152,448     $ 141,083   \n Non-interest income (GAAP)     19,161       15,225       19,108   \n Total revenue (GAAP)     169,330       167,673       160,191   \n Exclude: Net loss on sale of securities     1,242       —       —   \n Net change in valuation of financial instruments carried at fair value     (1,662 )     2,010       (315 ) \n Losses incurred on building and lease exits     —       169       —   \n Adjusted revenue (non-GAAP)   $ 168,910     $ 169,852     $ 159,876   \n               \n Efficiency ratio (GAAP)     60.60 %     62.11 %     63.21 % \n Adjusted efficiency ratio (non-GAAP) ((1))     59.45 %     59.87 %     62.18 % \n\n ((1)) Adjusted non-interest expense (non-GAAP) divided by adjusted revenue \n (non-GAAP). \n\n TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS             \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Shareholders’ equity (GAAP)   $ 1,966,634     $ 1,946,297     $ 1,833,453   \n Exclude goodwill and other intangible assets, net     374,356       374,612       375,723   \n Tangible common shareholders’ equity (non-GAAP)   $ 1,592,278     $ 1,571,685     $ 1,457,730   \n               \n Total assets (GAAP)   $ 16,344,272     $ 16,354,488     $ 16,170,812   \n Exclude goodwill and other intangible assets, net     374,356       374,612       375,723   \n Total tangible assets (non-GAAP)   $ 15,969,916     $ 15,979,876     $ 15,795,089   \n Common shareholders’ equity to total assets (GAAP)     12.03 %     11.90 %     11.34 % \n Tangible common shareholders’ equity to tangible assets (non-GAAP)     9.97 %     9.84 %     9.23 % \n               \n TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE             \n Shareholders’ equity (GAAP)   $ 1,966,634     $ 1,946,297     $ 1,833,453   \n Tangible common shareholders’ equity (non-GAAP)   $ 1,592,278     $ 1,571,685     $ 1,457,730   \n Common shares outstanding at end of period     33,875,098       34,097,856       34,489,972   \n Common shareholders’ equity (book value) per share (GAAP)   $ 58.06     $ 57.08     $ 53.16   \n Tangible common shareholders’ equity (tangible book value) per share   $ 47.00     $ 46.09     $ 42.27   \n (non-GAAP) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260422026633/en/\n(https://www.businesswire.com/news/home/20260422026633/en/)\n\nMARK J. GRESCOVICH, PRESIDENT & CEO\n\nROBERT G. BUTTERFIELD, CFO\n\n(509) 527-3636\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw3kBWzna","title":"Banner Corporation Reports Net Income of $54.7 Million, or $1.60 Per Diluted Share, for First Quarter 2026; Increases Quarterly Cash Dividend Declared by 4% to $0.52 Per Share","author":"Business Wire","ticker":"BANR","created":"2026-04-22T20:00:00.496Z","tickers":["BANR"],"exchange":"NASDAQ","article_body":"Banner Corporation Reports Net Income of $54.7 Million, or $1.60 Per Diluted\nShare, for First Quarter 2026; Increases Quarterly Cash Dividend Declared by\n4% to $0.52 Per Share\n\nBanner Corporation (NASDAQ: BANR) (“Banner”), the parent company of Banner\nBank, today reported net income of $54.7 million, or $1.60 per diluted share,\nfor the first quarter of 2026, compared to $51.2 million, or $1.49 per diluted\nshare, for the preceding quarter, and $45.1 million, or $1.30 per diluted\nshare, for the first quarter of 2025. Net interest income was $150.2 million\nfor the first quarter of 2026, compared to $152.4 million in the preceding\nquarter and $141.1 million for the first quarter a year ago. Net interest\nmargin expanded by eight basis points to 4.11%, driven by continued reductions\nin funding costs. The decrease in net interest income compared to the prior\nquarter primarily reflects two fewer calendar days in the current quarter and\na slight decrease in average earning assets, both of which were largely offset\nby the margin improvement. The increase in net interest income compared to the\nfirst quarter a year ago primarily reflects a decrease in overall funding\ncosts and an increase in the average balance of interest-earning assets. First\nquarter 2026 results included a $796,000 recapture of provision for credit\nlosses, compared to $2.4 million of provision for credit losses in the\npreceding quarter and $3.1 million of provision for credit losses in the first\nquarter of 2025.\n\nBanner announced that its Board of Directors increased its regular quarterly\ncash dividend by 4% to $0.52 per share payable May 15, 2026, to common\nshareholders of record on May 5, 2026.\n\n“Banner’s first quarter results demonstrate the continued strength of our\nsuper community bank strategy, which focuses on building client relationships,\npreserving a strong funding base, and delivering exceptional service while\nsustaining a moderate risk profile,” said Mark Grescovich, President and\nCEO. “Our earnings for the first quarter of 2026 benefited from an improved\nnet interest margin, increased non-interest income and decreased non-interest\nexpense. The strategic investments we have made across the organization are\ndelivering tangible returns and are further strengthening Banner for long-term\nsuccess. Additionally, Banner’s credit quality remains solid, supported by a\nwell-funded reserve for loan losses and a robust capital position that\nprovides resilience and flexibility for future growth. We also continue to\nbenefit from a strong core deposit base, with core deposits representing 89%\nof total deposits at quarter-end. For 135 years, Banner has upheld its core\nvalues by consistently doing the right thing for our clients, communities,\ncolleagues, company and shareholders. Our long-standing commitment has enabled\nus to earn trust, navigate change with confidence and continue building a\nstrong foundation for the future.”\n\nAt March 31, 2026, Banner, on a consolidated basis, had $16.34 billion in\nassets, $11.55 billion in net loans and $13.84 billion in deposits. Banner\noperates 135 full-service branch offices, including branches located in eight\nof the top 20 largest western Metropolitan Statistical Areas by population.\n\nFirst Quarter 2026 Highlights\n\n\n * Net interest margin, on a tax equivalent basis, was 4.11% for the current\nquarter, compared to 4.03% in the preceding quarter and 3.92% in the first\nquarter a year ago.\n\n * Revenue was $169.3 million for the first quarter of 2026, compared to $167.7\nmillion in the preceding quarter and an increase of 6% from $160.2 million in\nthe first quarter a year ago.\n\n * Net interest income was $150.2 million in the first quarter of 2026, compared\nto $152.4 million in the preceding quarter and $141.1 million in the first\nquarter a year ago.\n\n * Mortgage banking operations revenue was $3.2 million for the first quarter of\n2026, compared to $3.6 million in the preceding quarter and $3.1 million the\nfirst quarter a year ago.\n\n * Return on average assets was 1.37% for the first quarter of 2026, compared to\n1.24% in the preceding quarter and 1.15% in the first quarter a year ago.\n\n * Net loans receivable were $11.55 billion at March 31, 2026, compared to $11.56\nbillion at December 31, 2025, and compared to $11.28 billion at March 31,\n2025.\n\n * Total deposits were $13.84 billion at March 31, 2026, compared to $13.74\nbillion at December 31, 2025 and $13.59 billion at March 31, 2025.\n\n * Core deposits represented 89% of total deposits at March 31, 2026.\n\n * Non-performing assets were $51.7 million, or 0.32% of total assets, at March\n31, 2026, compared to $51.2 million, or 0.31% of total assets, at December 31,\n2025, and $42.7 million, or 0.26% of total assets, at March 31, 2025.\n\n * The allowance for credit losses - loans was $160.4 million, or 1.37% of total\nloans receivable, as of March 31, 2026, compared to $160.3 million, or 1.37%\nof total loans receivable, as of December 31, 2025, and $157.3 million, or\n1.38% of total loans receivable, as of March 31, 2025.\n\n * Dividends paid to shareholders were $0.50 per share in the quarter ended March\n31, 2026.\n\n * Common shareholders’ equity per share increased 2% to $58.06 at March 31,\n2026, compared to $57.08 at the preceding quarter end, and increased 9% from\n$53.16 at March 31, 2025.\n\n * Tangible common shareholders’ equity per share* increased 2% to $47.00 at\nMarch 31, 2026, compared to $46.09 at December 31, 2025, and increased 11%\nfrom $42.27 at March 31, 2025.\n\n * Repurchased 250,000 shares of Banner common stock during the first quarter of\n2026 at an average price of $64.56 per share.\n\n*Non-GAAP (Generally Accepted Accounting Principles) financial measure; See,\n“Additional Financial Information - Non-GAAP Financial Measures” on the\nfinal two pages of this press release for a reconciliation of non-GAAP\nfinancial measures.\n\nIncome Statement Review\n\nNet interest income was $150.2 million in the first quarter of 2026, compared\nto $152.4 million in the preceding quarter and $141.1 million in the first\nquarter a year ago. Net interest margin, on a tax equivalent basis, increased\neight basis points to 4.11% for the first quarter of 2026, compared to 4.03%\nin the preceding quarter, and increased 19 basis points from 3.92% in the\nfirst quarter a year ago. The net interest margin for the current quarter\nbenefited from lower funding costs.\n\nInterest income was $197.8 million in the first quarter of 2026, compared to\n$205.0 million in the preceding quarter and $193.9 million in the first\nquarter of 2025. Average yields on interest-earning assets were 5.39% for both\nthe first quarter of 2026 and the preceding quarter. Compared to the first\nquarter a year ago, average yields on interest-earning assets increased by\nfour basis points from 5.35%, primarily due to increases in the average\nbalance of loans. Average loan yields decreased by three basis points to 6.07%\nin the first quarter of 2026, compared to 6.10% in the preceding quarter, and\nwas consistent with 6.07% in the first quarter a year ago.\n\nInterest expense was $47.6 million in the first quarter of 2026, compared to\n$52.5 million in the preceding quarter and $52.8 million in the first quarter\na year ago. Total deposit costs decreased by eight basis points to 1.35% in\nthe first quarter of 2026, compared to 1.43% in the preceding quarter, and\ndecreased by 12 basis points compared to 1.47% in the first quarter a year\nago. The decrease in deposit costs in the current quarter compared to the\nprior quarter was primarily due to a decrease in market interest rates, as\nwell as a lower percentage of interest-bearing deposits being held in higher\ncost certificates of deposits. The decrease in deposit costs in the current\nquarter compared to the same quarter a year ago was primarily due to the\ndecreases in market interest rates, partially offset by an increase in the\naverage balance of interest-bearing deposits. The average rate paid on\nborrowings decreased three basis points to 3.90% in the first quarter of 2026,\ncompared to 3.93% in the preceding quarter, and decreased by 42 basis points\ncompared to 4.32% in the first quarter a year ago. The year-over-year decrease\nwas primarily due to declines in both interest rates paid and the average\nbalance of higher costing FHLB advances. The total cost of funding liabilities\ndecreased nine basis points to 1.38% in the first quarter of 2026, compared to\n1.47% in the preceding quarter, and decreased 17 basis points from 1.55% in\nthe first quarter a year ago, primarily due to deposit interest rate declines.\n\nA $796,000 recapture of provision for credit losses was recorded in the\ncurrent quarter (comprised of a $1.3 million provision for credit losses -\nloans and a $2.1 million recapture of provision for credit losses - unfunded\nloan commitments). This compares to a $2.4 million provision for credit losses\nin the prior quarter (comprised of a $1.5 million provision for credit losses\n- loans and a $945,000 provision for credit losses - unfunded loan\ncommitments) and a $3.1 million provision for credit losses in the first\nquarter a year ago (comprised of a $4.5 million provision for credit losses -\nloans and a $1.4 million recapture of provision for credit losses - unfunded\nloan commitments).\n\nTotal non-interest income was $19.2 million in the first quarter of 2026,\ncompared to $15.2 million in the preceding quarter and $19.1 million in the\nfirst quarter a year ago. The sequential increase was driven primarily by a\n$3.7 million favorable shift in fair value adjustments on financial\ninstruments. This was partially offset by a $1.2 million net loss on the sale\nof securities during the current quarter. Compared to the prior year quarter,\nthe slight increase in non-interest income was primarily attributable to an\nincrease in fair value adjustments on financial instruments carried at fair\nvalue, partially offset by the net loss recognized on the sale of securities\nduring the current quarter.\n\nTotal non-interest expense was $102.6 million in the first quarter of 2026,\ncompared to $104.1 million in the preceding quarter and $101.3 million in the\nfirst quarter of 2025. The decrease from the previous quarter reflected a $1.2\nmillion decrease in occupancy and equipment costs, primarily due to lower rent\nexpense as well as lower building repair and maintenance expenses, a $988,000\ndecrease in professional and legal expenses, primarily due to expenses\nrecognized on a pending legal settlement during the prior quarter and lower\naudit and regulatory exam expenses, and a $1.0 million decrease in advertising\nand marketing expense, primarily due to decreases in direct mail marketing and\ncommunity development expenses. These decreases were partially offset by a\n$2.3 million increase in salary and employee benefits, resulting from\nincreased medical premiums and payroll tax expenses. The increase compared to\nthe same quarter a year ago primarily reflects increases in salary and\nemployee benefits, partially offset by a decrease in occupancy and equipment\ncosts.\n\nBanner’s efficiency ratio was 60.60% for the first quarter of 2026, compared\nto 62.11% in the preceding quarter and 63.21% in the same quarter a year ago.\nBanner’s adjusted efficiency ratio, a non-GAAP financial measure, was 59.45%\nfor the first quarter of 2026, compared to 59.87% in the preceding quarter and\n62.18% in the year-ago quarter. See, “Additional Financial Information -\nNon-GAAP Financial Measures” on the final two pages of this press release\nfor a discussion and reconciliation of non-GAAP financial measures.\n\nBalance Sheet Review\n\nTotal assets were $16.34 billion at March 31, 2026, compared to $16.35 billion\nat December 31, 2025, and $16.17 billion at March 31, 2025. The decrease\ncompared to the prior quarter was primarily due to decreases in both loans\nheld for sale and loans receivable and a reduction in FHLB stock resulting\nfrom the repayment of FHLB advances, partially offset by growth in\ninterest-bearing deposits held at other banks. Securities and interest-bearing\ndeposits held at other banks totaled $3.24 billion at March 31, 2026, compared\nto $3.22 billion at December 31, 2025 and $3.33 billion at March 31, 2025. The\naverage effective duration of the securities portfolio was approximately 6.1\nyears and 6.5 years at March 31, 2026 and March 31, 2025, respectively.\n\nTotal loans receivable were $11.71 billion at March 31, 2026, compared to\n$11.72 billion at December 31, 2025, and increased from $11.44 billion at\nMarch 31, 2025. Commercial real estate loans totaled $4.11 billion at March\n31, 2026, an increase of 2% compared to $4.05 billion at December 31, 2025,\nand an increase of 7% from $3.84 billion at March 31, 2025. The increases from\nboth periods reflected a combination of new loan production and the conversion\nof commercial construction loans to the commercial real estate portfolio upon\ncompletion of the construction phase. Multifamily real estate loans decreased\n6% to $798.2 million at March 31, 2026, compared to $850.8 million at December\n31, 2025, and decreased 9% from $877.7 million at March 31, 2025. The\ndecreases from both periods were primarily due to payoffs and paydowns.\nAgricultural business loans decreased 6% to $332.4 million at March 31, 2026,\ncompared to $353.2 million at December 31, 2025, and decreased from $334.9\nmillion at March 31, 2025. The decrease was primarily due to operating line\npaydowns and payoffs exceeding new production. Consumer loans increased to\n$774.0 million at March 31, 2026, compared to $768.5 million at December 31,\n2025, and increased 8% compared to $717.2 million at March 31, 2025. The\nincreases resulted from both new loan production and advances, primarily\nrelated to home equity revolving lines of credit.\n\nLoans held for sale were $33.8 million at March 31, 2026, compared to $42.9\nmillion at December 31, 2025, and $24.5 million at March 31, 2025. One- to\nfour- family residential mortgage held for sale loans sold in the current\nquarter totaled $132.6 million, compared to $104.2 million in the preceding\nquarter, and $108.1 million in the first quarter a year ago. The decrease in\nloans held for sale at March 31, 2026, compared to the preceding quarter, was\nprimarily attributable to higher sales volumes of one- to four-family\nresidential mortgage loans held for sale during the current quarter. The\nincrease in loans held for sale at March 31, 2026, compared to the prior-year\nquarter, was primarily attributable to increased originations of one- to four-\nfamily residential mortgage loans held for sale.\n\nTotal deposits were $13.84 billion at March 31, 2026, compared to $13.74\nbillion at December 31, 2025, and $13.59 billion a year ago. Core deposits\nincreased to $12.38 billion at March 31, 2026, compared to $12.21 billion at\nDecember 31, 2025, and $12.09 billion at March 31, 2025. The increase compared\nto the preceding quarter primarily reflects increases in non-interest-bearing\ndeposits and interest-bearing transaction and savings accounts. The increase\ncompared to the prior year quarter primarily reflects increases in\ninterest-bearing transaction and savings accounts. Core deposits remained\nstable at 89% of total deposits at March 31, 2026, December 31, 2025 and March\n31, 2025. Certificates of deposit decreased 4% to $1.46 billion at March 31,\n2026, compared to $1.53 billion at December 31, 2025, and decreased 3% from\n$1.50 billion a year earlier.\n\nThere were no outstanding FHLB advances at March 31, 2026, compared to $150.0\nmillion at December 31, 2025, and $168.0 million a year ago, as the increase\nin core deposits was used to pay off FHLB advances during the current quarter.\nAt March 31, 2026, off-balance sheet liquidity included additional borrowing\ncapacity of $3.76 billion at the FHLB and $1.74 billion at the Federal\nReserve, as well as federal funds line of credit agreements with other\nfinancial institutions of $125.0 million.\n\nAt March 31, 2026, total common shareholders’ equity was $1.97 billion, or\n12.03% of total assets, compared to $1.95 billion, or 11.90% of total assets\nat December 31, 2025, and $1.83 billion, or 11.34% of total assets at March\n31, 2025. The increase in total common shareholders’ equity from December\n31, 2025, was primarily attributable to a $37.4 million increase in retained\nearnings resulting from $54.7 million in net income, partially offset by the\naccrual of $17.3 million in cash dividends during the first quarter of 2026.\nIn addition, Banner repurchased 250,000 shares of its common stock in the\nfirst quarter of 2026 at an average price of $64.56 per share. At March 31,\n2026, tangible common shareholders’ equity, a non-GAAP financial measure,\nwas $1.59 billion, or 9.97% of tangible assets, compared to $1.57 billion, or\n9.84% of tangible assets, at December 31, 2025, and $1.46 billion, or 9.23% of\ntangible assets, a year ago. See “Additional Financial Information -\nNon-GAAP Financial Measures” on the final two pages of this press release\nfor a reconciliation of non-GAAP financial measures.\n\nBanner and Banner Bank continue to maintain capital levels in excess of the\nrequirements to be categorized as “well-capitalized.” At March 31, 2026,\nBanner’s estimated common equity Tier 1 capital ratio was 12.97%, its\nestimated Tier 1 leverage capital to average assets ratio was 11.68%, and its\nestimated total capital to risk-weighted assets ratio was 14.85%. These\nregulatory capital ratios are estimates, pending completion and filing of\nBanner’s regulatory reports.\n\nCredit Quality\n\nThe allowance for credit losses - loans was $160.4 million, or 1.37% of total\nloans receivable and 353% of non-performing loans, at March 31, 2026, compared\nto $160.3 million, or 1.37% of total loans receivable and 351% of\nnon-performing loans, at December 31, 2025, and $157.3 million, or 1.38% of\ntotal loans receivable and 404% of non-performing loans, at March 31, 2025.\nThe allowance ratio remained stable compared to both prior periods, reflecting\nconsistent portfolio composition and credit performance. Coverage of\nnon-performing loans remained strong at 353% at March 31, 2026, compared to\n351% at December 31, 2025. The year-over-year decline from 404% at March 31,\n2025 reflects moderate growth in non-performing loans over the past year, from\n$39.0 million to $45.4 million, while the allowance level has remained stable\nand commensurate with the portfolio’s risk profile. In addition to the\nallowance for credit losses - loans, Banner maintains an allowance for credit\nlosses - unfunded loan commitments, which was $12.9 million at March 31, 2026,\ncompared to $15.0 million at December 31, 2025, and $12.2 million at March 31,\n2025. Net loan charge-offs remained low at $1.2 million in the first quarter\nof 2026, compared to net loan charge-offs of $934,000 and $2.7 million in the\npreceding quarter and first quarter a year ago, respectively. Non-performing\nloans were $45.4 million at March 31, 2026, compared to $45.6 million at\nDecember 31, 2025, and $39.0 million a year ago. Substandard loans were $235.0\nmillion as of March 31, 2026, compared to $193.1 million as of December 31,\n2025, and $197.8 million a year ago. Total non-performing assets were $51.7\nmillion, or 0.32% of total assets, at March 31, 2026, compared to $51.2\nmillion, or 0.31% of total assets, at December 31, 2025, and $42.7 million, or\n0.26% of total assets, a year ago.\n\nConference Call\n\nBanner will host a conference call on Thursday, April 23, 2026, at 8:00 a.m.\nPDT, to discuss its first quarter results. Interested investors may listen to\nthe call live at www.bannerbank.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bannerbank.com&esheet=54520183&newsitemid=20260422026633&lan=en-US&anchor=www.bannerbank.com&index=1&md5=02b1f8ed0b171b6048d0851dd1385243)\n. Investment professionals are invited to dial (800) 715-9871 to participate\nin the call. A replay of the call will be available at www.bannerbank.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bannerbank.com&esheet=54520183&newsitemid=20260422026633&lan=en-US&anchor=www.bannerbank.com&index=2&md5=6c8b5e63e4afe480317517f23a9bb6a6)\n.\n\nAbout the Company\n\nBanner Corporation is a $16.34 billion bank holding company operating a\ncommercial bank primarily in Washington, Oregon, California and Idaho through\na network of branches offering a full range of deposit services and business,\ncommercial real estate, construction, residential, agricultural and consumer\nloans. Visit Banner Bank on the Web at www.bannerbank.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bannerbank.com&esheet=54520183&newsitemid=20260422026633&lan=en-US&anchor=www.bannerbank.com&index=3&md5=390f08595888c9aeea65f491a65e8632)\n.\n\nForward-Looking Statements\n\nWhen used in this press release and in other documents filed with or furnished\nto the Securities and Exchange Commission (the “SEC”), in press releases\nor other public stockholder communications, or in oral statements made with\nthe approval of an authorized executive officer, the words or phrases\n“may,” “believe,” “will,” “will likely result,” “are\nexpected to,” “will continue,” “is anticipated,” “estimate,”\n“project,” “plans,” “potential,” or similar expressions are\nintended to identify “forward-looking statements” within the meaning of\nthe Private Securities Litigation Reform Act of 1995. You are cautioned not to\nplace undue reliance on any forward-looking statements, which speak only as of\nthe date such statements are made and based only on information then actually\nknown to Banner. Banner does not undertake and specifically disclaims any\nobligation to revise any forward-looking statements to reflect the occurrence\nof anticipated or unanticipated events or circumstances after the date of such\nstatements.\n\nForward-looking statements may relate to, among other things, future financial\nperformance, strategic plans or objectives, revenues or earnings projections,\nand other financial or operational information. These statements are\ninherently subject to numerous risks and uncertainties, including ongoing\nmarket volatility and evolving global conditions, which may cause actual\nresults to differ materially from those expressed or implied. These factors\ninclude, but are not limited to: (1) adverse impacts to economic conditions in\nour local market areas, other markets where the Company has lending\nrelationships, or other aspects of the Company’s business operations or\nfinancial markets, including, without limitation, as a result of labor\nshortages, elevated inflation, recessionary pressures, or slowing economic\ngrowth; (2) changes in interest rate levels, volatility, and the timing and\npace of such changes, including actions by the Federal Reserve, which could\nmaterially affect our net interest margin, funding costs, asset values, access\nto capital and liquidity; (3) the impact of inflation and monetary and fiscal\npolicy responses thereto, and their impact on consumer and business behavior;\n(4) geopolitical developments and international conflicts, including but not\nlimited to tensions or instability in Eastern Europe, South America, the\nMiddle East, and Asia, or the imposition of new or increased tariffs and trade\nrestrictions, which may disrupt financial markets, global supply chains,\ncommodity prices, or economic activity in specific industry sectors,\nincluding, but not limited to, agriculture-based lending; (5) the effects of a\nfederal government shutdown, debt ceiling standoff, or other fiscal policy\nuncertainty; (6) the impact of bank failures or adverse developments at other\nbanks and related negative publicity about the banking industry in general on\ninvestor and depositor sentiment; (7) expectations regarding key growth\ninitiatives and strategic priorities; (8) credit risks from lending\nactivities, including changes in the level and direction of loan delinquencies\nand write-offs and changes in estimates of the adequacy of the allowance for\ncredit losses, which could necessitate additional provisions for credit\nlosses, resulting both from loans originated and loans acquired from other\nfinancial institutions; (9) results of examinations by regulatory authorities,\nwhich could result in the imposition of penalties, required changes to our\nbusiness practices, or additional reserves; (10) competitive pressures among\ndepository and non-depository institutions that adversely affect pricing,\nmarket share, deposit flows or product offerings; (11) fluctuations in real\nestate values; (12) the ability to adapt to rapid technological changes,\nincluding advancements in artificial intelligence, digital banking platforms,\nand cybersecurity; (13) vulnerabilities in information systems or third-party\nservice providers, including disruptions, breaches, or attacks; (14) market\nvolatility or deterioration in capital markets affecting liquidity,\nvaluations, or investor confidence; (15) the costs, effects and outcomes of\nlitigation or other legal proceedings involving the Company; (16) legislation\nor regulatory changes, including but not limited to shifts in capital\nrequirements, banking regulation, tax laws, or consumer protection laws; (17)\nclimate-related risks and natural disasters, which may affect loan collateral,\noperations, or compliance obligations; (18) changes in accounting principles,\npolicies or guidelines; (19) the impact of future acquisitions or business\ncombinations, including related goodwill impairment risks and integration\nchallenges; (20) effects of critical accounting policies and judgments,\nincluding the use of estimates in determining fair value of certain of our\nassets, which estimates may prove to be incorrect and result in significant\ndeclines in valuation; (21) other economic, competitive, governmental,\nregulatory, and technological factors affecting our operations, pricing,\nproducts and services; and (22) other risks detailed from time to time in\nBanner’s other reports filed with and furnished to the Securities and\nExchange Commission including Banner’s Quarterly Reports on Form 10-Q and\nAnnual Reports on Form 10-K.\n RESULTS OF OPERATIONS   Quarters Ended \n (in thousands except shares and per share data)   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n INTEREST INCOME:             \n Loans receivable   $ 173,703     $ 178,908     $ 168,677   \n Mortgage-backed securities     14,316       14,750       15,744   \n Securities and cash equivalents     9,799       11,322       9,447   \n Total interest income     197,818       204,980       193,868   \n INTEREST EXPENSE:             \n Deposits     45,678       50,494       48,737   \n Federal Home Loan Bank (FHLB) advances     40       17       860   \n Other borrowings     697       693       694   \n Subordinated debt     1,234       1,328       2,494   \n Total interest expense     47,649       52,532       52,785   \n Net interest income     150,169       152,448       141,083   \n (RECAPTURE) PROVISION FOR CREDIT LOSSES     (796 )     2,441       3,139   \n Net interest income after (recapture) provision for credit losses     150,965       150,007       137,944   \n NON-INTEREST INCOME:             \n Deposit fees and other service charges     11,391       10,681       10,769   \n Mortgage banking operations     3,212       3,617       3,103   \n Bank-owned life insurance     2,312       2,491       2,575   \n Miscellaneous     1,826       446       2,346   \n       18,741       17,235       18,793   \n Net loss on sale of securities     (1,242 )     —       —   \n Net change in valuation of financial instruments carried at fair value     1,662       (2,010 )     315   \n Total non-interest income     19,161       15,225       19,108   \n NON-INTEREST EXPENSE:             \n Salary and employee benefits     67,732       65,428       64,857   \n Less capitalized loan origination costs     (3,886 )     (4,163 )     (3,330 ) \n Occupancy and equipment     10,697       11,852       12,097   \n Information and computer data services     8,313       9,041       7,628   \n Payment and card processing services     6,041       6,239       5,750   \n Professional and legal expenses     1,613       2,601       2,430   \n Advertising and marketing     673       1,676       590   \n Deposit insurance     2,717       2,850       2,797   \n State and municipal business and use taxes     1,820       1,751       1,454   \n Real estate operations, net     109       (43 )     (61 ) \n Amortization of core deposit intangibles     256       315       456   \n Miscellaneous     6,523       6,598       6,591   \n Total non-interest expense     102,608       104,145       101,259   \n Income before provision for income taxes     67,518       61,087       55,793   \n PROVISION FOR INCOME TAXES     12,802       9,838       10,658   \n NET INCOME   $ 54,716     $ 51,249     $ 45,135   \n Earnings per common share:             \n Basic   $ 1.61     $ 1.50     $ 1.31   \n Diluted   $ 1.60     $ 1.49     $ 1.30   \n Cumulative dividends declared per common share   $ 0.50     $ 0.50     $ 0.48   \n Weighted average number of common shares outstanding:             \n Basic     34,039,234       34,214,220       34,509,815   \n Diluted     34,254,587       34,408,587       34,778,687   \n\n FINANCIAL CONDITION               Percentage Change \n (in thousands except shares and per share data)   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n ASSETS                     \n Cash and due from banks   $ 180,158     $ 182,772     $ 213,574     (1 )%   (16 )% \n Interest-bearing deposits     259,081       239,868       228,371     8 %   13 % \n Total cash and cash equivalents     439,239       422,640       441,945     4 %   (1 )% \n Securities - available for sale, amortized cost $2,294,225, $2,271,471 and     2,035,021       2,016,261       2,108,945     1 %   (4 )% \n $2,426,395, respectively \n Securities - held to maturity, fair value $791,763, $814,668 and $819,261,     943,688       961,196       991,796     (2 )%   (5 )% \n respectively \n Total securities     2,978,709       2,977,457       3,100,741     — %   (4 )% \n FHLB stock     9,809       16,476       17,286     (40 )%   (43 )% \n Loans held for sale     33,778       42,902       24,536     (21 )%   38 % \n Loans receivable     11,707,626       11,721,687       11,438,796     — %   2 % \n Allowance for credit losses – loans     (160,352 )     (160,276 )     (157,323 )   — %   2 % \n Net loans receivable     11,547,274       11,561,411       11,281,473     — %   2 % \n Accrued interest receivable     63,736       60,525       63,987     5 %   — % \n Property and equipment, net     108,303       111,522       119,649     (3 )%   (9 )% \n Goodwill     373,121       373,121       373,121     — %   — % \n Other intangibles, net     1,235       1,491       2,602     (17 )%   (53 )% \n Bank-owned life insurance     321,660       319,347       313,942     1 %   2 % \n Operating lease right-of-use assets     31,056       32,736       37,134     (5 )%   (16 )% \n Other assets     436,352       434,860       394,396     — %   11 % \n Total assets   $ 16,344,272     $ 16,354,488     $ 16,170,812     — %   1 % \n LIABILITIES                     \n Deposits:                     \n Non-interest-bearing   $ 4,532,639     $ 4,489,839     $ 4,571,598     1 %   (1 )% \n Interest-bearing transaction and savings accounts     7,842,911       7,721,003       7,517,617     2 %   4 % \n Interest-bearing certificates     1,464,814       1,532,304       1,504,050     (4 )%   (3 )% \n Total deposits     13,840,364       13,743,146       13,593,265     1 %   2 % \n Advances from FHLB     —       150,000       168,000     (100 )%   (100 )% \n Other borrowings     115,723       107,715       130,588     7 %   (11 )% \n Subordinated notes, net     —       —       80,389     — %   (100 )% \n Junior subordinated debentures at fair value     79,472       79,151       67,711     — %   17 % \n Operating lease liabilities     33,794       35,755       40,466     (5 )%   (16 )% \n Accrued expenses and other liabilities     261,295       245,266       210,771     7 %   24 % \n Deferred compensation     46,990       47,158       46,169     — %   2 % \n Total liabilities     14,377,638       14,408,191       14,337,359     — %   — % \n SHAREHOLDERS’ EQUITY                     \n Common stock     1,268,298       1,282,505       1,308,967     (1 )%   (3 )% \n Retained earnings     909,222       871,803       772,412     4 %   18 % \n Accumulated other comprehensive loss     (210,886 )     (208,011 )     (247,926 )   1 %   (15 )% \n Total shareholders’ equity     1,966,634       1,946,297       1,833,453     1 %   7 % \n Total liabilities and shareholders’ equity   $ 16,344,272     $ 16,354,488     $ 16,170,812     — %   1 % \n Common Shares Issued:                     \n Shares outstanding at end of period     33,875,098       34,097,856       34,489,972           \n Common shareholders’ equity per share ((1))   $ 58.06     $ 57.08     $ 53.16           \n Common shareholders’ tangible equity per share ((1) (2))   $ 47.00     $ 46.09     $ 42.27           \n Common shareholders’ equity to total assets     12.03 %     11.90 %     11.34 %         \n Common shareholders’ tangible equity to tangible assets ((2))     9.97 %     9.84 %     9.23 %         \n Consolidated Tier 1 leverage capital ratio     11.68 %     11.41 %     11.22 %         \n\n (1) Calculation is based on number of common shares outstanding at the end of the \n period rather than weighted average shares outstanding. \n (2) Common shareholders’ tangible equity and tangible assets exclude goodwill \n and other intangible assets. These ratios represent non-GAAP financial \n measures. See, “Additional Financial Information - Non-GAAP Financial \n Measures” on the final two pages of this press release for a reconciliation \n of non-GAAP financial measures. \n\n ADDITIONAL FINANCIAL INFORMATION                     \n (dollars in thousands)                     \n                       \n LOANS               Percentage Change \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n Commercial real estate (CRE):                     \n Owner-occupied   $ 1,176,035     $ 1,138,298     $ 1,020,829     3 %   15 % \n Investment properties     1,719,220       1,701,413       1,598,387     1 %   8 % \n Small balance CRE     1,218,388       1,212,357       1,217,458     — %   — % \n Multifamily real estate     798,230       850,789       877,716     (6 )%   (9 )% \n Construction, land and land development:                     \n Commercial construction     174,761       156,021       146,467     12 %   19 % \n Multifamily construction     502,166       514,330       618,942     (2 )%   (19 )% \n One- to four-family construction     617,233       607,447       504,265     2 %   22 % \n Land and land development     400,959       433,678       396,009     (8 )%   1 % \n Commercial business:                     \n Commercial business     1,231,154       1,225,108       1,283,754     — %   (4 )% \n Small business scored     1,199,913       1,187,360       1,122,550     1 %   7 % \n Agricultural business, including secured by farmland:                     \n Agricultural business, including secured by farmland     332,440       353,152       334,899     (6 )%   (1 )% \n One- to four-family residential     1,563,088       1,573,191       1,600,283     (1 )%   (2 )% \n Consumer:                     \n Consumer—home equity revolving lines of credit     682,692       679,489       620,483     — %   10 % \n Consumer—other     91,347       89,054       96,754     3 %   (6 )% \n Total loans receivable   $ 11,707,626     $ 11,721,687     $ 11,438,796     — %   2 % \n Loans 30 - 89 days past due and on accrual   $ 30,177     $ 26,767     $ 37,339           \n Total delinquent loans (including loans on non-accrual), net   $ 65,632     $ 63,093     $ 71,927           \n Total delinquent loans / Total loans receivable     0.56 %     0.54 %     0.63 %         \n\n LOANS BY GEOGRAPHIC LOCATION                   Percentage Change \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n     Amount   Percentage   Amount   Amount         \n Washington   $ 5,313,022   45 %   $ 5,371,200   $ 5,260,906   (1 )%   1 % \n California     3,159,842   27 %     3,105,405     2,927,835   2 %   8 % \n Oregon     2,166,750   18 %     2,159,404     2,122,953   — %   2 % \n Idaho     690,608   6 %     667,343     665,625   3 %   4 % \n Utah     77,046   1 %     82,594     88,858   (7 )%   (13 )% \n Other     300,358   3 %     335,741     372,619   (11 )%   (19 )% \n Total loans receivable   $ 11,707,626   100 %   $ 11,721,687   $ 11,438,796   — %   2 % \n\n ADDITIONAL FINANCIAL INFORMATION \n (dollars in thousands) \n   \n LOAN ORIGINATIONS Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Commercial real estate $ 220,193   $ 136,604   $ 37,041 \n Multifamily real estate   3,869     4,300     9,555 \n Construction and land   323,941     362,199     287,565 \n Commercial business   168,324     219,592     103,739 \n Agricultural business   22,562     28,815     12,765 \n One-to four-family residential   13,416     7,219     5,139 \n Consumer   110,913     108,578     80,030 \n Total loan originations (excluding loans held for sale) $ 863,218   $ 867,307   $ 535,834 \n\n ADDITIONAL FINANCIAL INFORMATION             \n (dollars in thousands)             \n               \n CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS   Quarters Ended \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Balance, beginning of period   $ 160,276     $ 159,707     $ 155,521   \n Provision for credit losses – loans     1,292       1,503       4,549   \n Recoveries of loans previously charged off:             \n Commercial real estate     11       48       57   \n Construction and land     4       4       —   \n One- to four-family real estate     13       14       188   \n Commercial business     81       93       557   \n Agricultural business, including secured by farmland     4       68       10   \n Consumer     140       83       119   \n       253       310       931   \n Loans charged off:             \n One- to four-family real estate     —       —       (13 ) \n Commercial business     (863 )     (837 )     (3,301 ) \n Consumer     (606 )     (407 )     (364 ) \n       (1,469 )     (1,244 )     (3,678 ) \n Net charge-offs     (1,216 )     (934 )     (2,747 ) \n Balance, end of period   $ 160,352     $ 160,276     $ 157,323   \n Net charge-offs / average loans receivable     (0.010 )%     (0.008 )%     (0.024 )% \n\n ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Commercial real estate   $ 41,788     $ 41,599     $ 40,076   \n Multifamily real estate     9,201       9,805       10,109   \n Construction and land     34,589       35,508       32,042   \n One- to four-family real estate     19,640       19,552       20,752   \n Commercial business     39,452       37,785       38,665   \n Agricultural business, including secured by farmland     4,930       5,567       5,641   \n Consumer     10,752       10,460       10,038   \n Total allowance for credit losses – loans   $ 160,352     $ 160,276     $ 157,323   \n Allowance for credit losses - loans / Total loans receivable     1.37 %     1.37 %     1.38 % \n Allowance for credit losses - loans / Non-performing loans     353 %     351 %     404 % \n\n CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Balance, beginning of period $ 14,985     $ 14,040   $ 13,562   \n (Recapture) provision for credit losses - unfunded loan commitments   (2,082 )     945     (1,400 ) \n Balance, end of period $ 12,903     $ 14,985   $ 12,162   \n\n ADDITIONAL FINANCIAL INFORMATION           \n (dollars in thousands)           \n             \n NON-PERFORMING ASSETS Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Loans on non-accrual status:           \n Secured by real estate:           \n Commercial $ 2,027     $ 525     $ 2,182   \n Construction and land   4,321       5,175       4,359   \n One- to four-family   20,945       19,855       10,448   \n Commercial business   6,988       6,751       6,425   \n Agricultural business, including secured by farmland   5,511       4,609       10,301   \n Consumer   4,214       4,610       4,874   \n     44,006       41,525       38,589   \n Loans more than 90 days delinquent, still on accrual:           \n Secured by real estate:           \n Construction and land   —       1,268       —   \n One- to four-family   636       2,698       9   \n Commercial business   —       —       206   \n Consumer   795       148       155   \n     1,431       4,114       370   \n Total non-performing loans   45,437       45,639       38,959   \n REO   6,248       5,578       3,468   \n Other repossessed assets   —       18       300   \n Total non-performing assets $ 51,685     $ 51,235     $ 42,727   \n Total non-performing assets to total assets   0.32 %     0.31 %     0.26 % \n\n LOANS BY CREDIT RISK RATING Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Pass $ 11,416,687   $ 11,446,550   $ 11,207,852 \n Special Mention   55,981     82,060     33,133 \n Substandard   234,958     193,077     197,811 \n Total $ 11,707,626   $ 11,721,687   $ 11,438,796 \n\n ADDITIONAL FINANCIAL INFORMATION                     \n (dollars in thousands)                     \n                       \n DEPOSIT COMPOSITION               Percentage Change \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Prior Qtr   Prior Yr Qtr \n Non-interest-bearing   $ 4,532,639   $ 4,489,839   $ 4,571,598   1 %   (1 )% \n Interest-bearing checking     2,628,731     2,609,080     2,431,279   1 %   8 % \n Regular savings accounts     3,859,530     3,723,922     3,542,005   4 %   9 % \n Money market accounts     1,354,650     1,388,001     1,544,333   (2 )%   (12 )% \n Total interest-bearing transaction and savings accounts     7,842,911     7,721,003     7,517,617   2 %   4 % \n Total core deposits     12,375,550     12,210,842     12,089,215   1 %   2 % \n Interest-bearing certificates     1,464,814     1,532,304     1,504,050   (4 )%   (3 )% \n Total deposits   $ 13,840,364   $ 13,743,146   $ 13,593,265   1 %   2 % \n\n GEOGRAPHIC CONCENTRATION OF DEPOSITS   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025   Percentage Change \n     Amount   Percentage   Amount   Amount   Prior Qtr   Prior Yr Qtr \n Washington   $ 7,429,406   54 %   $ 7,500,215   $ 7,394,201   (1 )%   — % \n Oregon     3,125,040   23 %     3,035,104     3,045,078   3 %   3 % \n California     2,558,466   18 %     2,483,948     2,463,012   3 %   4 % \n Idaho     727,452   5 %     723,879     690,974   — %   5 % \n Total deposits   $ 13,840,364   100 %   $ 13,743,146   $ 13,593,265   1 %   2 % \n\n INCLUDED IN TOTAL DEPOSITS   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Public non-interest-bearing accounts   $ 146,846   $ 138,860   $ 146,390 \n Public interest-bearing transaction & savings accounts     237,776     234,669     239,707 \n Public interest-bearing certificates     36,125     34,431     24,226 \n Total public deposits   $ 420,747   $ 407,960   $ 410,323 \n Collateralized public deposits   $ 325,675   $ 312,310   $ 313,445 \n Total brokered deposits   $ —   $ 50,002   $ 75,321 \n               \n AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Number of deposit accounts     444,250     445,989     453,808 \n Average account balance per account   $ 32   $ 31   $ 30 \n\n ADDITIONAL FINANCIAL INFORMATION                         \n (dollars in thousands)                         \n ESTIMATED REGULATORY CAPITAL RATIOS AS OF MARCH 31, 2026   Actual   Minimum to be categorized as \"Adequately Capitalized\"   Minimum to be categorized as \"Well Capitalized\" \n     Amount   Ratio   Amount   Ratio   Amount   Ratio \n                           \n Banner Corporation-consolidated:                         \n Total capital to risk-weighted assets   $ 2,055,876   14.85 %   $ 1,107,753   8.00 %   $ 1,384,692   10.00 % \n Tier 1 capital to risk-weighted assets     1,882,784   13.60 %     830,815   6.00 %     830,815   6.00 % \n Tier 1 leverage capital to average assets     1,882,784   11.68 %     644,575   4.00 %     n/a   n/a   \n Common equity tier 1 capital to risk-weighted assets     1,796,284   12.97 %     623,111   4.50 %     n/a   n/a   \n Banner Bank:                         \n Total capital to risk-weighted assets     1,959,652   14.16 %     1,107,375   8.00 %     1,384,219   10.00 % \n Tier 1 capital to risk-weighted assets     1,786,618   12.91 %     830,531   6.00 %     1,107,375   8.00 % \n Tier 1 leverage capital to average assets     1,786,618   11.09 %     644,332   4.00 %     805,415   5.00 % \n Common equity tier 1 capital to risk-weighted assets     1,786,618   12.91 %     622,898   4.50 %     899,742   6.50 % \n\n These regulatory capital ratios are estimates, pending completion and filing \n of Banner’s regulatory reports. \n\n ADDITIONAL FINANCIAL INFORMATION                                   \n (dollars in thousands)                                   \n (rates / ratios annualized)                                   \n ANALYSIS OF NET INTEREST SPREAD Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n   Average Balance   Interest and Dividends   Yield / Cost ((3))   Average Balance   Interest and Dividends   Yield / Cost ((3))   Average Balance   Interest and Dividends   Yield / Cost ((3)) \n Interest-earning assets:                                   \n Held for sale loans $ 26,051   $ 381     5.93 %   $ 31,892   $ 487     6.06 %   $ 22,457   $ 357     6.45 % \n Real estate secured loans   9,754,431     144,369     6.00 %     9,759,170     148,310     6.03 %     9,366,213     137,724     5.96 % \n Commercial/agricultural loans   1,853,248     29,153     6.38 %     1,877,966     30,430     6.43 %     1,907,212     30,752     6.54 % \n Consumer and other loans   116,147     2,040     7.12 %     119,212     2,076     6.91 %     121,492     2,092     6.98 % \n Total loans ((1))   11,749,877     175,943     6.07 %     11,788,240     181,303     6.10 %     11,417,374     170,925     6.07 % \n Mortgage-backed securities   2,326,123     14,509     2.53 %     2,379,784     14,943     2.49 %     2,542,983     15,895     2.53 % \n Other securities   878,650     9,040     4.17 %     869,066     9,141     4.17 %     902,732     9,687     4.35 % \n Interest-bearing deposits with banks   184,204     1,518     3.34 %     293,188     2,786     3.77 %     65,758     484     2.99 % \n FHLB stock   9,912     148     6.06 %     9,849     300     12.08 %     12,804     149     4.72 % \n Total investment securities   3,398,889     25,215     3.01 %     3,551,887     27,170     3.03 %     3,524,277     26,215     3.02 % \n Total interest-earning assets   15,148,766     201,158     5.39 %     15,340,127     208,473     5.39 %     14,941,651     197,140     5.35 % \n Non-interest-earning assets   1,106,533             1,081,392             1,006,497         \n Total assets $ 16,255,299           $ 16,421,519           $ 15,948,148         \n Deposits:                                   \n Interest-bearing checking accounts $ 2,631,917     9,273     1.43 %   $ 2,671,378     10,550     1.57 %   $ 2,381,106     8,537     1.45 % \n Savings accounts   3,792,427     18,388     1.97 %     3,739,496     19,623     2.08 %     3,450,908     18,103     2.13 % \n Money market accounts   1,387,870     6,151     1.80 %     1,430,674     6,926     1.92 %     1,555,262     7,860     2.05 % \n Certificates of deposit   1,481,349     11,866     3.25 %     1,539,845     13,395     3.45 %     1,531,428     14,237     3.77 % \n Total interest-bearing deposits   9,293,563     45,678     1.99 %     9,381,393     50,494     2.14 %     8,918,704     48,737     2.22 % \n Non-interest-bearing deposits   4,470,629     —     — %     4,584,612     —     — %     4,526,596     —     — % \n Total deposits   13,764,192     45,678     1.35 %     13,966,005     50,494     1.43 %     13,445,300     48,737     1.47 % \n Other interest-bearing liabilities:                                   \n FHLB advances   4,089     40     3.97 %     1,630     17     4.14 %     75,300     860     4.63 % \n Other borrowings   111,569     697     2.53 %     114,685     693     2.40 %     134,761     694     2.09 % \n Junior subordinated debentures and subordinated notes   89,178     1,234     5.61 %     89,178     1,328     5.91 %     169,678     2,494     5.96 % \n Total borrowings   204,836     1,971     3.90 %     205,493     2,038     3.93 %     379,739     4,048     4.32 % \n Total funding liabilities   13,969,028     47,649     1.38 %     14,171,498     52,532     1.47 %     13,825,039     52,785     1.55 % \n Other non-interest-bearing liabilities ((2))   320,808             324,492             324,031         \n Total liabilities   14,289,836             14,495,990             14,149,070         \n Shareholders’ equity   1,965,463             1,925,529             1,799,078         \n Total liabilities and shareholders’ equity $ 16,255,299           $ 16,421,519           $ 15,948,148         \n Net interest income/rate spread (tax equivalent)       153,509     4.01 %         155,941     3.92 %         144,355     3.80 % \n Net interest margin (tax equivalent)         4.11 %           4.03 %           3.92 % \n Reconciliation to reported net interest income:                                   \n Adjustments for taxable equivalent basis       (3,340 )             (3,493 )             (3,272 )     \n Net interest income and margin, as reported     $ 150,169     4.02 %       $ 152,448     3.94 %       $ 141,083     3.83 % \n Additional Key Financial Ratios:                                   \n Return on average assets         1.37 %           1.24 %           1.15 % \n Adjusted return on average assets ((4))         1.36 %           1.29 %           1.14 % \n Return on average equity         11.29 %           10.56 %           10.17 % \n Adjusted return on average equity ((4))         11.23 %           10.97 %           10.12 % \n Return on average tangible common equity ((4))         14.00 %           13.17 %           12.96 % \n Average equity/average assets         12.09 %           11.73 %           11.28 % \n Average interest-earning assets/average interest-bearing liabilities         159.49 %           160.01 %           160.69 % \n Average interest-earning assets/average funding liabilities         108.45 %           108.25 %           108.08 % \n Non-interest income/average assets         0.48 %           0.37 %           0.49 % \n Non-interest expense/average assets         2.56 %           2.52 %           2.57 % \n Efficiency ratio         60.60 %           62.11 %           63.21 % \n Adjusted efficiency ratio ((4))         59.45 %           59.87 %           62.18 % \n\n ((1)) Average balances include loans accounted for on a nonaccrual basis and \n accruing loans 90 days or more past due. Amortization of net deferred loan \n fees/costs is included with interest on loans. \n ((2)) Average other non-interest-bearing liabilities include fair value adjustments \n related to junior subordinated debentures. \n ((3)) Tax-exempt income is calculated on a tax equivalent basis, which Banner \n believes provides comparability of net interest income and net interest margin \n arising from both taxable and tax-exempt sources and is consistent with \n industry practice. The tax equivalent yield adjustment to interest earned on \n loans was $2.2 million, $2.4 million and $2.2 million for the quarters ended \n March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The tax \n equivalent yield adjustment to interest earned on tax exempt securities was \n $1.1 million for both the quarters ended March 31, 2026 and December 31, 2025 \n and $1.0 million for the quarter ended March 31, 2025. \n ((4)) Represent non-GAAP financial measures. See, “Additional Financial \n Information - Non-GAAP Financial Measures” on the final two pages of this \n press release for a reconciliation of non-GAAP financial measures. \n\n ADDITIONAL FINANCIAL INFORMATION           \n (dollars in thousands)           \n             \n * Non-GAAP Financial Measures           \n In addition to results presented in accordance with generally accepted \n accounting principles in the United States of America (GAAP), this earnings \n release contains certain non-GAAP financial measures. Tangible common \n shareholders’ equity per share, the ratio of tangible common equity to \n tangible assets and the return on average tangible common equity, and \n references to adjusted revenue, adjusted earnings, the adjusted return on \n average assets, the adjusted return on average equity and the adjusted \n efficiency ratio represent non-GAAP financial measures. Management has \n presented these non-GAAP financial measures in this earnings release because \n it believes that they provide useful and comparative information to assess \n trends in Banner’s core operations reflected in the current quarter’s \n results and facilitate the comparison of our performance with the performance \n of our peers. However, these non-GAAP financial measures are supplemental and \n are not a substitute for any analysis based on GAAP. Where applicable, \n comparable earnings information using GAAP financial measures is also \n presented. Because not all companies use the same calculations, our \n presentation may not be comparable to other similarly titled measures as \n calculated by other companies. For a reconciliation of these non-GAAP \n financial measures, see the tables below: \n             \n ADJUSTED REVENUE Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Net interest income (GAAP) $ 150,169     $ 152,448   $ 141,083   \n Non-interest income (GAAP)   19,161       15,225     19,108   \n Total revenue (GAAP)   169,330       167,673     160,191   \n Exclude: Net loss on sale of securities   1,242       —     —   \n Net change in valuation of financial instruments carried at fair value   (1,662 )     2,010     (315 ) \n Losses incurred on building and lease exits   —       169     —   \n Adjusted revenue (non-GAAP) $ 168,910     $ 169,852   $ 159,876   \n\n ADJUSTED EARNINGS Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Net income (GAAP) $ 54,716     $ 51,249     $ 45,135   \n Exclude: Net loss on sale of securities   1,242       —       —   \n Net change in valuation of financial instruments carried at fair value   (1,662 )     2,010       (315 ) \n Building and lease exit costs   9       603       —   \n Related net tax expense (benefit)   99       (627 )     76   \n Total adjusted earnings (non-GAAP) $ 54,404     $ 53,235     $ 44,896   \n             \n Diluted earnings per share (GAAP) $ 1.60     $ 1.49     $ 1.30   \n Diluted adjusted earnings per share (non-GAAP) $ 1.59     $ 1.55     $ 1.29   \n Return on average assets   1.37 %     1.24 %     1.15 % \n Adjusted return on average assets ((1))   1.36 %     1.29 %     1.14 % \n Return on average equity   11.29 %     10.56 %     10.17 % \n Adjusted return on average equity ((2))   11.23 %     10.97 %     10.12 % \n             \n AVERAGE TANGIBLE COMMON EQUITY Quarters Ended \n   Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Net Income (GAAP) $ 54,716     $ 51,249     $ 45,135   \n Exclude: Amortization of intangibles, net of tax $ 202     $ 249     $ 360   \n Tangible net income available to common shareholders (non-GAAP) $ 54,918     $ 51,498     $ 45,495   \n             \n Average common shareholder’s equity $ 1,965,463     $ 1,925,529     $ 1,799,078   \n Exclude: Average goodwill and other intangible assets, net   374,477       374,764       375,943   \n Average tangible common equity $ 1,590,986     $ 1,550,765     $ 1,423,135   \n             \n Return on average tangible common equity ((3))   14.00 %     13.17 %     12.96 % \n\n ((1)) Adjusted earnings (non-GAAP) divided by average assets. \n ((2)) Adjusted earnings (non-GAAP) divided by average equity. \n ((3)) Tangible net income (non-GAAP) divided by average tangible common equity \n (non-GAAP). \n\n ADDITIONAL FINANCIAL INFORMATION             \n (dollars in thousands)             \n ADJUSTED EFFICIENCY RATIO   Quarters Ended \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Non-interest expense (GAAP)   $ 102,608     $ 104,145     $ 101,259   \n Exclude: CDI amortization     (256 )     (315 )     (456 ) \n State/municipal tax expense     (1,820 )     (1,751 )     (1,454 ) \n REO operations     (109 )     43       61   \n Building and lease exit costs     (9 )     (434 )     —   \n Adjusted non-interest expense (non-GAAP)   $ 100,414     $ 101,688     $ 99,410   \n               \n Net interest income (GAAP)   $ 150,169     $ 152,448     $ 141,083   \n Non-interest income (GAAP)     19,161       15,225       19,108   \n Total revenue (GAAP)     169,330       167,673       160,191   \n Exclude: Net loss on sale of securities     1,242       —       —   \n Net change in valuation of financial instruments carried at fair value     (1,662 )     2,010       (315 ) \n Losses incurred on building and lease exits     —       169       —   \n Adjusted revenue (non-GAAP)   $ 168,910     $ 169,852     $ 159,876   \n               \n Efficiency ratio (GAAP)     60.60 %     62.11 %     63.21 % \n Adjusted efficiency ratio (non-GAAP) ((1))     59.45 %     59.87 %     62.18 % \n\n ((1)) Adjusted non-interest expense (non-GAAP) divided by adjusted revenue \n (non-GAAP). \n\n TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS             \n     Mar 31, 2026   Dec 31, 2025   Mar 31, 2025 \n Shareholders’ equity (GAAP)   $ 1,966,634     $ 1,946,297     $ 1,833,453   \n Exclude goodwill and other intangible assets, net     374,356       374,612       375,723   \n Tangible common shareholders’ equity (non-GAAP)   $ 1,592,278     $ 1,571,685     $ 1,457,730   \n               \n Total assets (GAAP)   $ 16,344,272     $ 16,354,488     $ 16,170,812   \n Exclude goodwill and other intangible assets, net     374,356       374,612       375,723   \n Total tangible assets (non-GAAP)   $ 15,969,916     $ 15,979,876     $ 15,795,089   \n Common shareholders’ equity to total assets (GAAP)     12.03 %     11.90 %     11.34 % \n Tangible common shareholders’ equity to tangible assets (non-GAAP)     9.97 %     9.84 %     9.23 % \n               \n TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE             \n Shareholders’ equity (GAAP)   $ 1,966,634     $ 1,946,297     $ 1,833,453   \n Tangible common shareholders’ equity (non-GAAP)   $ 1,592,278     $ 1,571,685     $ 1,457,730   \n Common shares outstanding at end of period     33,875,098       34,097,856       34,489,972   \n Common shareholders’ equity (book value) per share (GAAP)   $ 58.06     $ 57.08     $ 53.16   \n Tangible common shareholders’ equity (tangible book value) per share   $ 47.00     $ 46.09     $ 42.27   \n (non-GAAP) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260422026633/en/\n(https://www.businesswire.com/news/home/20260422026633/en/)\n\nMARK J. GRESCOVICH, PRESIDENT & CEO\n\nROBERT G. BUTTERFIELD, CFO\n\n(509) 527-3636\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-22T20:00:00.700806593Z","server_sent_at_ms":1776888000700},"received_at":"2026-04-22T20:00:01.032Z","source_url":"https://www.businesswire.com/news/home/20260422026633/en/"},"analysis":{"id":"3898","press_release_id":"5350","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":["Non-performing assets increased to $51.7 million from $42.7 million year-over-year","Net interest income declined sequentially from $152.4 million to $150.2 million"],"eventType":"earnings","narrative":"Banner reported Q1 2026 net income of $54.7 million, or $1.60 per diluted share, up from $1.30 per share in the year-ago quarter.\n\nNet interest margin expanded by 8 basis points to 4.11%, while total revenue increased 6% year-over-year to $169.3 million.\n\nThe Board raised the quarterly cash dividend by 4% to $0.52 per share and repurchased 250,000 shares during the quarter at an average price of $64.56.","sentiment":"bullish","agentHooks":{"shouldPost":false,"suggestedAngle":""},"keyFigures":{"eps":1.6,"revenue":"$169.3 million","revenueYoy":"6%"},"quotedText":"Banner’s first quarter results demonstrate 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","namedEntities":{"people":[{"name":"Mark Grescovich","role":"President and CEO"}],"products":[],"companies":[{"name":"Banner Corporation","ticker":"BANR"},{"name":"Banner Bank","relationship":"subsidiary"}],"dollarAmounts":[{"amount":"$54.7 million","context":"Q1 2026 net income"},{"amount":"$1.60","context":"Q1 2026 diluted earnings per share"},{"amount":"$0.52","context":"new quarterly cash dividend"},{"amount":"$169.3 million","context":"Q1 2026 revenue"},{"amount":"$150.2 million","context":"Q1 2026 net interest income"},{"amount":"$64.56","context":"average repurchase price per share"}]},"materialImpact":{"score":3,"reasoning":"Solid earnings growth with net income increasing over 20% year-over-year and net interest margin expanding 8 basis points sequentially. The dividend hike and share repurchases add to the positive sentiment, but the results represent steady execution rather than a binary market-moving event."},"tickerRelevance":{"others":[],"primary":"BANR"},"eventTypeSecondary":["dividend","buyback"]},"event_type":"earnings","event_type_secondary":["dividend","buyback"],"sentiment":"bullish","material_impact_score":3,"narrative":"Banner reported Q1 2026 net income of $54.7 million, or $1.60 per diluted share, up from $1.30 per share in the year-ago quarter.\n\nNet interest margin expanded by 8 basis points to 4.11%, while total revenue increased 6% year-over-year to $169.3 million.\n\nThe Board raised the quarterly cash dividend by 4% to $0.52 per share and repurchased 250,000 shares during the quarter at an average price of $64.56.","key_figures":{"eps":1.6,"revenue":"$169.3 million","revenueYoy":"6%"},"named_entities":{"people":[{"name":"Mark Grescovich","role":"President and CEO"}],"products":[],"companies":[{"name":"Banner Corporation","ticker":"BANR"},{"name":"Banner Bank","relationship":"subsidiary"}],"dollarAmounts":[{"amount":"$54.7 million","context":"Q1 2026 net income"},{"amount":"$1.60","context":"Q1 2026 diluted earnings per share"},{"amount":"$0.52","context":"new quarterly cash dividend"},{"amount":"$169.3 million","context":"Q1 2026 revenue"},{"amount":"$150.2 million","context":"Q1 2026 net interest income"},{"amount":"$64.56","context":"average repurchase price per share"}]},"model_name":"glm-4.7","prompt_hash":"sha256:2f2748f0fcc8c4f2","schema_hash":"sha256:ad96b863d7123008","created_at":"2026-04-22T21:36:57.934Z","global_importance":3,"audience_relevance":3,"importance_components":{"method":"backfill-heuristic","signals":{"bodyLong":false,"headlineTier1":false,"tickerCovered":false,"hadSignificance":false},"version":1,"computedAt":"2026-04-27T11:52:54.382Z"}},"durationMs":74481,"modelName":"glm-4.7"}}