Banner Corporation Reports Net Income of $53.5 Million, or $1.54 Per Diluted Share, for Third Quarter 2025; Increases Quarterly Cash Dividend Declared by 4% to $0.50 Per Share

WALLA WALLA, Wash.--(BUSINESS WIRE)-- Banner Corporation (NASDAQ: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $53.5 million, or $1.54 per diluted share, for the third quarter of 2025, compared to $45.5 million, or $1.31 per diluted share, for the preceding quarter and $45.2 million, or $1.30 per diluted share, for the third quarter of 2024. Net interest income was $150.0 million for the third quarter of 2025, compared to $144.4 million in the preceding quarter and $135.7 million for the third quarter a year ago. The increase in net interest income compared to the preceding quarter and the prior year quarter reflects an increase in both the yield and average balance of interest-earning assets. The increase in net interest income compared to the prior year quarter also reflects a decrease in overall funding costs. Third quarter 2025 results included a $2.7 million provision for credit losses, compared to $4.8 million in the preceding quarter and $1.7 million in the third quarter of 2024. Net income was $144.1 million, or $4.15 per diluted share, for the nine months ended September 30, 2025, compared to net income of $122.5 million, or $3.54 per diluted share, for the nine months ended September 30, 2024. Banner’s results for the nine months ended September 30, 2025 include a $10.6 million provision for credit losses, a $374,000 net gain on the sale of securities and a $626,000 net increase in the fair value adjustments on financial instruments carried at fair value, compared to a $4.6 million provision for credit losses, a $5.5 million net loss on the sale of securities and a $1.1 million net decrease in the fair value adjustments on financial instruments carried at fair value during the same period in 2024.

Banner announced that its Board of Directors increased its regular quarterly cash dividend by 4% to $0.50 per share payable November 14, 2025, to common shareholders of record on November 4, 2025.

“Banner’s third quarter performance reflects the continued strength of our super community bank strategy, which focuses on building client relationships, preserving a strong funding base, and delivering exceptional service while sustaining a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the third quarter of 2025 benefited from solid year over year loan growth as well as higher yields on interest-earning assets. The strategic investments we have made across the organization are generating meaningful returns and are further strengthening Banner for long-term success. Additionally, Banner continues to demonstrate strong credit quality, supported by stable credit metrics, a well-funded reserve for loan losses, and a robust capital position that provides resilience and flexibility for future growth. We also continue to benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter-end. For 135 years, Banner has stayed true to its core values by consistently doing the right thing for our clients, communities, colleagues, company and shareholders. Our long-standing commitment has enabled us to navigate change with confidence and continue building a strong foundation for the future.”

At September 30, 2025, Banner, on a consolidated basis, had $16.56 billion in assets, $11.54 billion in net loans and $14.02 billion in deposits. Banner operates 135 full-service branch offices, including branches located in eight of the top 20 largest western Metropolitan Statistical Areas by population.

Third Quarter 2025 Highlights

• Net interest margin, on a tax equivalent basis, was 3.98% for the current quarter, compared to 3.92% in the preceding quarter and 3.72% in the third quarter a year ago.
• Revenue increased 5% to $170.7 million for the third quarter of 2025, compared to $162.2 million in the preceding quarter and increased 11% from $153.7 million in the third quarter a year ago.
• Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities, the net change in valuation of financial instruments, and gains or losses incurred on building and lease exits) was $168.7 million in the third quarter of 2025, compared to $163.0 million in the preceding quarter and $153.7 million in the third quarter a year ago.
• Net interest income was $150.0 million in the third quarter of 2025, compared to $144.4 million in the preceding quarter and increased 11% from $135.7 million in the third quarter a year ago.
• Mortgage banking operations revenue was $3.3 million for the third quarter of 2025, compared to $3.2 million in both the preceding quarter and the third quarter a year ago.
• Return on average assets was 1.30% for the third quarter of 2025, compared to 1.13% in both the preceding quarter and third quarter a year ago.
• Net loans receivable were $11.54 billion at September 30, 2025, compared to $11.53 billion at June 30, 2025, and increased 4% compared to $11.07 billion at September 30, 2024.
• Total deposits increased 4% to $14.02 billion at September 30, 2025, compared to $13.53 billion at June 30, 2025 and $13.54 billion at September 30, 2024.
• Core deposits represented 89% of total deposits at September 30, 2025.
• Non-performing assets were $45.3 million, or 0.27% of total assets, at September 30, 2025, compared to $49.8 million, or 0.30% of total assets, at June 30, 2025 and $45.2 million, or 0.28% of total assets, at September 30, 2024.
• The allowance for credit losses - loans was $159.7 million, or 1.36% of total loans receivable, as of September 30, 2025, compared to $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025 and $154.6 million, or 1.38% of total loans receivable, as of September 30, 2024.
• Dividends paid to shareholders were $0.48 per share in the quarter ended September 30, 2025.
• Common shareholders’ equity per share increased 3% to $55.71 at September 30, 2025, compared to $53.95 at the preceding quarter end, and increased 7% from $52.06 at September 30, 2024.
• Tangible common shareholders’ equity per share* increased 4% to $44.79 at September 30, 2025, compared to $43.09 at June 30, 2025, and increased 9% from $41.12 at September 30, 2024.
• Repurchased 250,000 shares of Banner common stock during the third quarter of 2025 at an average price of $63.11 per share.

*Non-GAAP (Generally Accepted Accounting Principles) financial measure; See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

Income Statement Review

Net interest income was $150.0 million in the third quarter of 2025, compared to $144.4 million in the preceding quarter and $135.7 million in the third quarter a year ago. Net interest margin, on a tax equivalent basis, increased six basis points to 3.98% for the third quarter of 2025, compared to 3.92% for the preceding quarter, and increased 26 basis points compared to 3.72% in the third quarter a year ago. The net interest margin for the current quarter benefited from higher yields on interest-earning assets and lower funding costs.

Interest income was $205.8 million in the third quarter of 2025, compared to $200.3 million in the preceding quarter and $195.8 million in the third quarter a year ago. Average yields on interest-earning assets increased three basis points to 5.43% for the third quarter of 2025, compared to 5.40% for the preceding quarter, and increased 10 basis points compared to 5.33% in the third quarter a year ago, primarily due to increases in average loan yields. Average loan yields increased five basis points to 6.17%, compared to 6.12% in the preceding quarter, and increased 13 basis points compared to 6.04% in the third quarter a year ago. The increase in average loan yields during the current quarter primarily reflects new loans being originated at higher interest rates and adjustable-rate loans repricing higher.

Interest expense was $55.9 million in both the third quarter of 2025 and the preceding quarter, compared to $60.2 million in the third quarter a year ago. Total deposit costs increased three basis points to 1.50% in the third quarter of 2025, compared to 1.47% the preceding quarter and decreased 11 basis points compared to 1.61% in the third quarter a year ago. The decrease in deposit costs in the current quarter compared to the same quarter a year ago was primarily due to interest rate declines in the second half of 2024. The average rate paid on borrowings decreased 29 basis points to 4.18% in the third quarter of 2025, compared to 4.47% in the preceding quarter, and decreased compared to 5.08% in the third quarter a year ago, primarily due to declines in both market interest rates and the average balance of borrowings. The total cost of funding liabilities decreased three basis points to 1.57% in the third quarter of 2025, compared to 1.60% in the preceding quarter, primarily due to a decrease in the average balance of FHLB advances, as the increase in deposits was used to pay down borrowings. The total cost of funding liabilities also decreased 16 basis points from 1.73% in the third quarter a year ago, primarily due to deposit interest rate declines and decreases in both the average balance and cost of borrowings, partially offset by an increase in the average balance of interest-bearing deposits.

A $2.7 million provision for credit losses was recorded in the current quarter (comprised of a $1.4 million provision for credit losses - loans and a $1.3 million provision for credit losses - unfunded loan commitments). This compares to a $4.8 million provision for credit losses in the prior quarter (comprised of a $4.2 million provision for credit losses - loans and a $588,000 provision for credit losses - unfunded loan commitments) and a $1.7 million provision for credit losses in the third quarter a year ago (comprised of a $2.0 million provision for credit losses - loans and a $262,000 recapture of provision for credit losses - unfunded loan commitments). The provision for credit losses in the quarter was driven by changes in both portfolio mix and individually evaluated loans.

Total non-interest income was $20.7 million in the third quarter of 2025, compared to $17.8 million in the preceding quarter and $18.1 million in the third quarter a year ago. The increase from the preceding quarter was primarily due to a $2.0 million increase in miscellaneous income, which reflected gains recognized on the sale of assets during the current quarter, compared to losses incurred on building and lease exits during the prior quarter associated with Banner’s reduction of excess office space. The increase compared to the prior year quarter was also primarily due to the increase in miscellaneous income resulting from the disposition of assets. Total non-interest income was $57.6 million for the nine months ended September 30, 2025, compared to $46.9 million for the same period a year earlier.

Mortgage banking operations revenue was $3.3 million in the third quarter of 2025, compared to $3.2 million in both the preceding quarter and the third quarter a year ago. The volume of one- to four-family loans sold during the current quarter increased compared to both the preceding quarter and the prior year quarter. Home purchase activity accounted for 88% of one- to four-family mortgage loan originations in the third quarter of 2025, compared to 85% in the preceding quarter and 88% in the third quarter of 2024.

Total non-interest expense was $102.0 million in the third quarter of 2025, compared to $101.3 million in the preceding quarter and $96.3 million in the third quarter of 2024. The increase from the previous quarter reflected a $450,000 increase in miscellaneous expense due to an increase in talent acquisition and other employee related expenses and a $308,000 increase in advertising and marketing expenses due to increases in direct mail marketing and community development expenses, partially offset by a $551,000 decrease in salary and employee benefits resulting from decreased medical premiums expense and payroll taxes. In addition, the current quarter included losses of $1.0 million in building and lease exit costs, compared to $834,000 of such costs in the previous quarter. The increase compared to the same quarter a year ago primarily reflects increases in salary and employee benefits, information and computer data services and professional and legal expenses. For the nine months ended September 30, 2025, total non-interest expense was $304.6 million, compared to $292.1 million for the nine months ended September 30, 2024.

Banner’s efficiency ratio was 59.76% for the third quarter of 2025, compared to 62.50% in the preceding quarter and 62.63% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 58.54% for the third quarter of 2025, compared to 60.28% in the preceding quarter and 61.27% in the year-ago quarter. The improvement in Banner’s efficiency ratio compared to both the preceding and prior year quarters primarily reflected stronger net interest margins, combined with controlled growth in operating expenses. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures.

Balance Sheet Review

Total assets were $16.56 billion at September 30, 2025, up from $16.44 billion at June 30, 2025 and $16.19 billion at September 30, 2024. The increase compared to the prior quarter was primarily due to an increase in interest-bearing deposits held at other banks, partially offset by decreases in securities. Securities and interest-bearing deposits held at other banks totaled $3.47 billion at September 30, 2025, compared to $3.29 billion at June 30, 2025 and $3.50 billion at September 30, 2024. The average effective duration of the securities portfolio was approximately 6.4 years at September 30, 2025, compared to 6.3 years at September 30, 2024.

Total loans receivable were $11.70 billion at September 30, 2025, up from $11.69 billion at June 30, 2025 and up 4% compared to $11.22 billion at September 30, 2024. Commercial real estate loans increased to $4.00 billion at September 30, 2025, compared to $3.97 billion at June 30, 2025, and increased 5% compared to $3.79 billion at September 30, 2024. The increase in commercial real estate loans from both June 30, 2025 and September 30, 2024 was a combination of both new loan production and the conversion of commercial construction loans to the commercial real estate portfolio upon the completion of the construction phase. Construction, land and land development loans increased 2% to $1.74 billion at September 30, 2025, compared to $1.70 billion at June 30, 2025, and increased 14% compared to $1.53 billion at September 30, 2024. The increase from both June 30, 2025 and September 30, 2024 was primarily due to new production and advances, partially offset by payoffs and transfers to the portfolio upon the completion of the construction phase. Commercial business loans decreased 2% to $2.43 billion at September 30, 2025, compared to $2.47 billion at June 30, 2025, primarily due to payoffs and paydowns outpacing new loan production, and increased 3% compared to $2.37 billion at September 30, 2024, primarily as a result of new loan production.

Loans held for sale were $20.3 million at September 30, 2025, compared to $37.7 million at June 30, 2025 and $78.8 million at September 30, 2024. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $136.9 million, compared to $104.6 million in the preceding quarter and $95.0 million in the third quarter a year ago. The decrease in loans held for sale compared to the preceding and prior year quarters was primarily the result of increased sales of one- to four- family residential mortgage loans held for sale, with loan sales outpacing originations during the quarter.

Total deposits were $14.02 billion at September 30, 2025, compared to $13.53 billion at June 30, 2025 and $13.54 billion a year ago. Core deposits increased 4% to $12.48 billion at September 30, 2025, compared to $12.05 billion at June 30, 2025, and increased 4% compared to $12.02 billion at September 30, 2024. The increase compared to the preceding and prior year quarters primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits remain stable at 89% of total deposits at September 30, 2025, June 30, 2025 and September 30, 2024. Certificates of deposit increased 4% to $1.54 billion at September 30, 2025, compared to $1.48 billion at June 30, 2025, and increased from $1.52 billion a year earlier.

FHLB advances decreased 82% to $100.0 million at September 30, 2025, compared to $565.0 million at June 30, 2025 and decreased 57% compared to $230.0 million a year ago as deposits were used as the primary source of funds during the current quarter. At September 30, 2025, off-balance sheet liquidity included additional borrowing capacity of $3.25 billion at the FHLB and $1.63 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million.

At September 30, 2025, total common shareholders’ equity was $1.91 billion or 11.55% of total assets, compared to $1.87 billion or 11.35% of total assets at June 30, 2025, and $1.79 billion or 11.08% of total assets at September 30, 2024. The increase at September 30, 2025 compared to June 30, 2025 was due to a $36.7 million increase in retained earnings resulting from $53.5 million in net income, partially offset by the accrual of $16.8 million of cash dividends during the third quarter of 2025. In addition, Banner repurchased 250,000 shares of its common stock in the third quarter of 2025 at an average price of $63.11 per share. At September 30, 2025, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.54 billion, or 9.50% of tangible assets, compared to $1.49 billion, or 9.28% of tangible assets, at June 30, 2025, and $1.42 billion, or 8.96% of tangible assets, a year ago. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

Banner and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized.” At September 30, 2025, Banner’s estimated common equity Tier 1 capital ratio was 12.78%, its estimated Tier 1 leverage capital to average assets ratio was 11.33%, and its estimated total capital to risk-weighted assets ratio was 14.66%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

Credit Quality

The allowance for credit losses - loans was $159.7 million, or 1.36% of total loans receivable and 399% of non-performing loans, at September 30, 2025, compared to $160.5 million, or 1.37% of total loans receivable and 373% of non-performing loans, at June 30, 2025, and $154.6 million, or 1.38% of total loans receivable and 359% of non-performing loans, at September 30, 2024. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $14.0 million at September 30, 2025, compared to $12.8 million at June 30, 2025, and $13.8 million at September 30, 2024. Net loan charge-offs totaled $2.2 million in the third quarter of 2025, compared to net loan charge-offs of $1.0 million and $230,000 in the preceding quarter and third quarter a year ago, respectively. Non-performing loans were $40.0 million at September 30, 2025, compared to $43.0 million at June 30, 2025, and $43.0 million a year ago. Substandard loans were $174.0 million as of September 30, 2025, compared to $189.5 million as of June 30, 2025 and $150.1 million a year ago. Total non-performing assets were $45.3 million, or 0.27% of total assets, at September 30, 2025, compared to $49.8 million, or 0.30% of total assets, at June 30, 2025, and $45.2 million, or 0.28% of total assets, a year ago.

Conference Call

Banner will host a conference call on Thursday, October 16, 2025, at 8:00 a.m. PDT, to discuss its third quarter results. Interested investors may listen to the call live at www.bannerbank.com. Investment professionals are invited to dial (833) 470-1428 using access code 613608 to participate in the call. A replay of the call will be available at www.bannerbank.com.

About the Company

Banner Corporation is a $16.56 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “potential,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made and based only on information then actually known to Banner. Banner does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Forward-looking statements may relate to, among other things, future financial performance, strategic plans or objectives, revenues or earnings projections, and other financial or operational information. These statements are inherently subject to numerous risks and uncertainties, including ongoing market volatility and evolving global conditions, which may cause actual results to differ materially from those expressed or implied. These factors include, but are not limited to: (1) adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of labor shortages, elevated inflation, recessionary pressures, or slowing economic growth; (2) changes in interest rate levels and the duration of such changes, including actions by the Federal Reserve, which could materially affect our net interest margin, funding costs, asset values, access to capital and liquidity; (3) the impact of inflation and monetary and fiscal policy responses thereto, and their impact on consumer and business behavior; (4) geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy prices, or economic activity in specific industry sectors, including, but not limited to, agriculture-based lending; (5) the effects of federal government shutdowns, debt ceiling standoff, or other fiscal policy uncertainty; (6) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (7) expectations regarding key growth initiatives and strategic priorities; (8) credit risks from lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses, which could necessitate additional provisions for credit losses, resulting both from loans originated and loans acquired from other financial institutions; (9) results of examinations by regulatory authorities, which could result in the imposition of penalties, required changes to our business practices, or additional reserves; (10) competitive pressures among depository and non-depository institutions affecting pricing, market share or product offerings; (11) fluctuations in real estate values; (12) the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; (13) vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; (14) market volatility or deterioration in capital markets affecting liquidity, valuations, or investor confidence; (15) the costs, effects and outcomes of litigation or other legal proceedings involving the Company; (16) legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; (17) climate-related risks and natural disasters, which may affect loan collateral, operations, or compliance obligations; (18) changes in accounting principles, policies or guidelines; (19) the impact of future acquisitions or business combinations, including related goodwill impairment risks and integration challenges; (20) effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; (21) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (22) other risks detailed from time to time in Banner’s other reports filed with and furnished to the Securities and Exchange Commission including Banner’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

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

FINANCIAL CONDITION																		Percentage Change
(in thousands except shares and per share data)		Sep 30, 2025				Jun 30, 2025				Dec 31, 2024				Sep 30, 2024				Prior Qtr			Prior Yr Qtr
ASSETS
Cash and due from banks		$	193,453			$	239,339			$	203,402			$	226,568			(19	)%		(15	)%
Interest-bearing deposits			479,410				244,009				298,456				252,227			96	%		90	%
Total cash and cash equivalents			672,863				483,348				501,858				478,795			39	%		41	%
Securities - available for sale, amortized cost $2,292,835, $2,372,331, $2,460,262 and $2,523,968, respectively			2,018,525				2,064,581				2,104,511				2,237,939			(2	)%		(10	)%
Securities - held to maturity, fair value $815,434, $801,838, $825,528 and $879,278, respectively			971,603				981,312				1,001,564				1,013,903			(1	)%		(4	)%
Total securities			2,990,128				3,045,893				3,106,075				3,251,842			(2	)%		(8	)%
FHLB stock			14,226				35,151				22,451				19,751			(60	)%		(28	)%
Loans held for sale			20,334				37,651				32,021				78,841			(46	)%		(74	)%
Loans receivable			11,702,538				11,690,373				11,354,656				11,224,606			—	%		4	%
Allowance for credit losses – loans			(159,707	)			(160,501	)			(155,521	)			(154,585	)		—	%		3	%
Net loans receivable			11,542,831				11,529,872				11,199,135				11,070,021			—	%		4	%
Accrued interest receivable			64,914				64,729				60,885				66,981			—	%		(3	)%
Property and equipment, net			113,848				117,175				124,589				125,256			(3	)%		(9	)%
Goodwill			373,121				373,121				373,121				373,121			—	%		—	%
Other intangibles, net			1,806				2,147				3,058				3,647			(16	)%		(50	)%
Bank-owned life insurance			317,469				316,365				312,549				310,400			—	%		2	%
Operating lease right-of-use assets			35,494				38,754				39,998				38,192			(8	)%		(7	)%
Other assets			416,047				392,963				424,297				371,829			6	%		12	%
Total assets		$	16,563,081			$	16,437,169			$	16,200,037			$	16,188,676			1	%		2	%
LIABILITIES
Deposits:
Non-interest-bearing		$	4,572,338			$	4,504,491			$	4,591,543			$	4,688,244			2	%		(2	)%
Interest-bearing transaction and savings accounts			7,903,215				7,545,028				7,423,183				7,328,051			5	%		8	%
Interest-bearing certificates			1,540,382				1,477,772				1,499,672				1,521,853			4	%		1	%
Total deposits			14,015,935				13,527,291				13,514,398				13,538,148			4	%		4	%
Advances from FHLB			100,000				565,000				290,000				230,000			(82	)%		(57	)%
Other borrowings			120,536				117,112				125,257				154,533			3	%		(22	)%
Subordinated notes, net			—				—				80,278				80,170			—	%		(100	)%
Junior subordinated debentures at fair value			76,251				73,366				67,477				66,257			4	%		15	%
Operating lease liabilities			38,826				41,696				43,472				42,318			(7	)%		(8	)%
Accrued expenses and other liabilities			251,464				200,194				258,070				237,128			26	%		6	%
Deferred compensation			47,177				46,846				46,759				46,401			1	%		2	%
Total liabilities			14,650,189				14,571,505				14,425,711				14,394,955			1	%		2	%
SHAREHOLDERS’ EQUITY
Common stock			1,295,821				1,309,004				1,307,509				1,304,792			(1	)%		(1	)%
Retained earnings			837,826				801,082				744,091				714,472			5	%		17	%
Accumulated other comprehensive loss			(220,755	)			(244,422	)			(277,274	)			(225,543	)		(10	)%		(2	)%
Total shareholders’ equity			1,912,892				1,865,664				1,774,326				1,793,721			3	%		7	%
Total liabilities and shareholders’ equity		$	16,563,081			$	16,437,169			$	16,200,037			$	16,188,676			1	%		2	%
Common Shares Issued:
Shares outstanding at end of period			34,335,297				34,583,994				34,459,832				34,456,688
Common shareholders’ equity per share (1)		$	55.71			$	53.95			$	51.49			$	52.06
Common shareholders’ tangible equity per share (1) (2)		$	44.79			$	43.09			$	40.57			$	41.12
Common shareholders’ equity to total assets			11.55	%			11.35	%			10.95	%			11.08	%
Common shareholders’ tangible equity to tangible assets (2)			9.50	%			9.28	%			8.84	%			8.96	%
Consolidated Tier 1 leverage capital ratio			11.33	%			11.29	%			11.05	%			10.91	%

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

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
LOANS																		Percentage Change
		Sep 30, 2025				Jun 30, 2025				Dec 31, 2024				Sep 30, 2024				Prior Qtr			Prior Yr Qtr
Commercial real estate (CRE):
Owner-occupied		$	1,134,559			$	1,125,249			$	1,027,426			$	990,516			1	%		15	%
Investment properties			1,652,141				1,625,001				1,623,672				1,583,863			2	%		4	%
Small balance CRE			1,210,357				1,223,477				1,213,792				1,218,822			(1	)%		(1	)%
Multifamily real estate			860,650				860,700				894,425				889,866			—	%		(3	)%
Construction, land and land development:
Commercial construction			144,125				159,222				122,362				124,051			(9	)%		16	%
Multifamily construction			586,104				568,058				513,706				524,108			3	%		12	%
One- to four-family construction			578,128				551,806				514,220				507,350			5	%		14	%
Land and land development			427,348				417,474				369,663				370,690			2	%		15	%
Commercial business:
Commercial business			1,254,460				1,318,483				1,318,333				1,281,615			(5	)%		(2	)%
Small business scored			1,176,889				1,152,531				1,104,117				1,087,714			2	%		8	%
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland			354,884				345,742				340,280				346,686			3	%		2	%
One- to four-family residential			1,582,605				1,610,133				1,591,260				1,575,164			(2	)%		—	%
Consumer:
Consumer—home equity revolving lines of credit			649,188				639,757				625,680				622,615			1	%		4	%
Consumer—other			91,100				92,740				95,720				101,546			(2	)%		(10	)%
Total loans receivable		$	11,702,538			$	11,690,373			$	11,354,656			$	11,224,606			—	%		4	%
Loans 30 - 89 days past due and on accrual		$	14,674			$	10,786			$	26,824			$	13,030
Total delinquent loans (including loans on non-accrual), net		$	45,529			$	47,764			$	55,432			$	44,656
Total delinquent loans / Total loans receivable			0.39	%			0.41	%			0.49	%			0.40	%

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

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

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

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

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

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

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

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

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

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

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF SEPTEMBER 30, 2025		Actual						Minimum to be categorized as "Adequately Capitalized"						Minimum to be categorized as "Well Capitalized"
		Amount			Ratio			Amount			Ratio			Amount			Ratio
Banner Corporation-consolidated:
Total capital to risk-weighted assets		$	2,009,954		14.66	%		$	1,096,832		8.00	%		$	1,371,040		10.00	%
Tier 1 capital to risk-weighted assets			1,838,541		13.41	%			822,624		6.00	%			822,624		6.00	%
Tier 1 leverage capital to average assets			1,838,541		11.33	%			649,161		4.00	%			n/a		n/a
Common equity tier 1 capital to risk-weighted assets			1,752,041		12.78	%			616,968		4.50	%			n/a		n/a
Banner Bank:
Total capital to risk-weighted assets			1,941,114		14.16	%			1,096,375		8.00	%			1,370,469		10.00	%
Tier 1 capital to risk-weighted assets			1,769,772		12.91	%			822,281		6.00	%			1,096,375		8.00	%
Tier 1 leverage capital to average assets			1,769,772		10.91	%			648,959		4.00	%			811,198		5.00	%
Common equity tier 1 capital to risk-weighted assets			1,769,772		12.91	%			616,711		4.50	%			890,805		6.50	%
These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Quarters Ended
	Sep 30, 2025										Jun 30, 2025										Sep 30, 2024
	Average Balance			Interest and Dividends				Yield / Cost (3)			Average Balance			Interest and Dividends				Yield / Cost (3)			Average Balance			Interest and Dividends				Yield / Cost (3)
Interest-earning assets:
Held for sale loans	$	32,109		$	531			6.56	%		$	29,936		$	503			6.74	%		$	26,954		$	453			6.69	%
Mortgage loans		9,651,895			147,682			6.07	%			9,565,357			143,909			6.03	%			9,207,468			135,497			5.85	%
Commercial/agricultural loans		1,869,782			31,124			6.60	%			1,924,092			31,196			6.50	%			1,879,215			32,547			6.89	%
Consumer and other loans		119,593			2,114			7.01	%			121,142			2,087			6.91	%			128,548			2,154			6.67	%
Total loans (1)		11,673,379			181,451			6.17	%			11,640,527			177,695			6.12	%			11,242,185			170,651			6.04	%
Mortgage-backed securities		2,445,497			15,269			2.48	%			2,496,972			15,576			2.50	%			2,623,399			16,498			2.50	%
Other securities		854,725			9,065			4.21	%			893,062			9,561			4.29	%			943,310			11,120			4.69	%
Interest-bearing deposits with banks		291,147			3,053			4.16	%			75,539			577			3.06	%			51,604			493			3.80	%
FHLB stock		15,729			463			11.68	%			23,077			222			3.86	%			16,664			412			9.84	%
Total investment securities		3,607,098			27,850			3.06	%			3,488,650			25,936			2.98	%			3,634,977			28,523			3.12	%
Total interest-earning assets		15,280,477			209,301			5.43	%			15,129,177			203,631			5.40	%			14,877,162			199,174			5.33	%
Non-interest-earning assets		1,022,905										994,003										981,290
Total assets	$	16,303,382									$	16,123,180									$	15,858,452
Deposits:
Interest-bearing checking accounts	$	2,618,924			10,834			1.64	%		$	2,465,015			9,462			1.54	%		$	2,295,723			9,497			1.65	%
Savings accounts		3,616,728			20,170			2.21	%			3,493,965			18,837			2.16	%			3,268,647			19,299			2.35	%
Money market accounts		1,471,938			7,799			2.10	%			1,492,229			7,729			2.08	%			1,611,543			9,184			2.27	%
Certificates of deposit		1,510,966			13,448			3.53	%			1,489,611			13,288			3.58	%			1,540,637			15,805			4.08	%
Total interest-bearing deposits		9,218,556			52,251			2.25	%			8,940,820			49,316			2.21	%			8,716,550			53,785			2.45	%
Non-interest-bearing deposits		4,573,009			—			—	%			4,480,579			—			—	%			4,601,755			—			—	%
Total deposits		13,791,565			52,251			1.50	%			13,421,399			49,316			1.47	%			13,318,305			53,785			1.61	%
Other interest-bearing liabilities:
FHLB advances		133,380			1,527			4.54	%			296,671			3,370			4.56	%			161,413			2,263			5.58	%
Other borrowings		119,727			694			2.30	%			122,227			675			2.22	%			159,439			1,147			2.86	%
Junior subordinated debentures and subordinated notes		89,178			1,387			6.17	%			168,793			2,499			5.94	%			179,075			2,971			6.60	%
Total borrowings		342,285			3,608			4.18	%			587,691			6,544			4.47	%			499,927			6,381			5.08	%
Total funding liabilities		14,133,850			55,859			1.57	%			14,009,090			55,860			1.60	%			13,818,232			60,166			1.73	%
Other non-interest-bearing liabilities (2)		296,036										274,407										311,803
Total liabilities		14,429,886										14,283,497										14,130,035
Shareholders’ equity		1,873,496										1,839,683										1,728,417
Total liabilities and shareholders’ equity	$	16,303,382									$	16,123,180									$	15,858,452
Net interest income/rate spread (tax equivalent)					153,442			3.86	%						147,771			3.80	%						139,008			3.60	%
Net interest margin (tax equivalent)								3.98	%									3.92	%									3.72	%
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis					(3,453	)									(3,372	)									(3,333	)
Net interest income and margin, as reported				$	149,989			3.89	%					$	144,399			3.83	%					$	135,675			3.63	%
Additional Key Financial Ratios:
Return on average assets								1.30	%									1.13	%									1.13	%
Adjusted return on average assets (4)								1.28	%									1.16	%									1.13	%
Return on average equity								11.33	%									9.92	%									10.39	%
Adjusted return on average equity (4)								11.18	%									10.20	%									10.39	%
Average equity/average assets								11.49	%									11.41	%									10.90	%
Average interest-earning assets/average interest-bearing liabilities								159.82	%									158.78	%									161.42	%
Average interest-earning assets/average funding liabilities								108.11	%									108.00	%									107.66	%
Non-interest income/average assets								0.50	%									0.44	%									0.45	%
Non-interest expense/average assets								2.48	%									2.52	%									2.42	%
Efficiency ratio								59.76	%									62.50	%									62.63	%
Adjusted efficiency ratio (4)								58.54	%									60.28	%									61.27	%

(1)	Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans.
(2)	Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.
(3)	Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $2.4 million for the quarter ended September 30, 2025 and $2.3 million for both the quarters ended June 30, 2025 and September 30, 2024. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for both the quarters ended September 30, 2025 and June 30, 2025 and $1.0 million for the quarter ended September 30, 2024.
(4)	Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

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

(1)	Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans.
(2)	Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.
(3)	Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $7.0 million and $6.5 million for the nine months ended September 30, 2025 and 2024, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $3.1 million for both the nine months ended September 30, 2025 and 2024.
(4)	Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
* Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this earnings release contains certain non-GAAP financial measures. Tangible common shareholders’ equity per share and the ratio of tangible common equity to tangible assets, and references to adjusted revenue, adjusted earnings, the adjusted return on average assets, the adjusted return on average equity and the adjusted efficiency ratio represent non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:
ADJUSTED REVENUE	Quarters Ended												Nine Months Ended
	Sep 30, 2025				Jun 30, 2025				Sep 30, 2024				Sep 30, 2025				Sep 30, 2024
Net interest income (GAAP)	$	149,989			$	144,399			$	135,675			$	435,471			$	401,180
Non-interest income (GAAP)		20,730				17,751				18,063				57,589				46,853
Total revenue (GAAP)		170,719				162,150				153,738				493,060				448,033
Exclude:
Net (gain) loss on sale of securities		(377	)			3				—				(374	)			5,465
Net change in valuation of financial instruments carried at fair value		(223	)			(88	)			(39	)			(626	)			1,143
(Gains) losses incurred on building and lease exits		(1,373	)			919				—				(454	)			—
Adjusted revenue (non-GAAP)	$	168,746			$	162,984			$	153,699			$	491,606			$	454,641

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

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

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

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

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251015704745/en/

MARK J. GRESCOVICH, PRESIDENT & CEO

ROBERT G. BUTTERFIELD, CFO

(509) 527-3636

Source: Banner Corporation