Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Banner Corporation	NASDAQ:BANR	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.28	0.40%	70.11	28.02	77.75	71.07	69.23	71.07	218,561	22:30:00

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): July 17, 2024

Banner Corporation

(Exact name of registrant as specified in its charter)

Washington

000-26584

91-1691604

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

10 S. First Avenue, Walla Walla, Washington 99362

(Address of principal executive offices) (Zip Code)

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

Not Applicable

(Former name or former address, if changed since last report)

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

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

BANR

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.*

On July 17, 2024, Banner Corporation issued its earnings release for the quarter ended June 30, 2024. A copy of the earnings release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.*

Banner Corporation intends to review the investor presentation attached as Exhibit 99.2 to this Current Report on Form 8-K in conjunction with its earnings release conference call on July 17, 2024, and from time to time in presentations to investors and other stakeholders.

Item 8.01 Other Events.

On July 17, 2024, Banner Corporation announced its Board of Directors declared a regular quarterly cash dividend on Banner Corporation common stock of $0.48 per share, payable on August 16, 2024 to stockholders of record as of the close of business on August 6, 2024.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits

99.1 Press Release of Banner Corporation dated July 17, 2024.

99.2 Banner Corporation Investor Materials

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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

SIGNATURES

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


			BANNER CORPORATION



Date: July 17, 2024			By: /s/ Robert G Butterfield
			Robert G Butterfield
			Executive Vice President, Treasurer and Chief Financial Officer

Exhibit 99.1


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

						NEWS RELEASE

Banner Corporation Reports Net Income of $39.8 Million, or $1.15 Per Diluted Share, for Second Quarter 2024;

Declares Quarterly Cash Dividend of $0.48 Per Share

Walla Walla, WA - July 17, 2024 - Banner Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $39.8 million, or $1.15 per diluted share, for the second quarter of 2024, compared to $37.6 million, or $1.09 per diluted share, for the preceding quarter and $39.6 million, or $1.15 per diluted share, for the second quarter of 2023. Net interest income was $132.5 million in the second quarter of 2024, compared to $133.0 million in the preceding quarter and $142.5 million in the second quarter a year ago. The decrease in net interest income compared to the preceding quarter and prior year quarter reflects an increase in funding costs, partially offset by an increase in yields on earning assets. Banner’s second quarter 2024 results included a $562,000 net loss on the sale of securities, compared to a $4.9 million net loss on the sale of securities in the preceding quarter and a $4.5 million net loss on the sale of securities in the second quarter of 2023. Banner’s second quarter 2024 results also included a $2.4 million provision for credit losses, compared to a $520,000 provision for credit losses in the preceding quarter and a $6.8 million provision for credit losses in the second quarter of 2023. Net income was $77.4 million, or $2.24 per diluted share, for the six months ended June 30, 2024, compared to net income of $95.1 million, or $2.76 per diluted share, for the six months ended June 30, 2023. Banner’s results for the six months ended June 30, 2024 include a $2.9 million provision for credit losses, a $5.5 million net loss on the sale of securities and a $1.2 million net decrease in the fair value adjustments on financial instruments carried at fair value, compared to a $6.2 million provision for credit losses, an $11.8 million net loss on the sale of securities and a $3.7 million net decrease in the fair value adjustments on financial instruments carried at fair value during the same period in 2023.

Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share. The dividend will be payable August 16, 2024, to common shareholders of record on August 6, 2024.

“Banner’s second quarter operating results reflect the continued successful execution of our super community bank strategy, which emphasizes strong relationship banking and a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the second quarter of 2024 benefited from solid growth in loans and higher yields on interest-earning assets. The continued high interest rate environment and its effect on funding costs, however, resulted in moderate compression in our net interest margin during the quarter. We continue to maintain strong credit quality metrics and a solid reserve for potential credit losses. Additionally, we continue to benefit from a strong core deposit base that has been resilient in a highly competitive environment, with core deposits representing 88% of total deposits at quarter end. Banner has upheld its core values for the past 133 years, which are to do the right thing for our clients, communities, colleagues, company and shareholders; and to provide consistent and reliable strength through all economic cycles and change events.”

At June 30, 2024, Banner, on a consolidated basis, had $15.82 billion in assets, $10.99 billion in net loans and $13.08 billion in deposits. Banner operates 135 full-service branch offices, including branches located in eight of the top 20 largest western Metropolitan Statistical Areas by population.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 2

Second Quarter 2024 Highlights

•Revenue was $149.7 million for the second quarter of 2024, compared to $144.6 million in the preceding quarter and $150.9 million in the second quarter a year ago.

•Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities and the net change in valuation of financial instruments) was $150.5 million in the second quarter of 2024, compared to $150.4 million in the preceding quarter and $158.6 million in the second quarter a year ago.

•Net interest income was $132.5 million in the second quarter of 2024, compared to $133.0 million in the preceding quarter and $142.5 million in the second quarter a year ago.

•Net interest margin, on a tax equivalent basis, was 3.70%, compared to 3.74% in the preceding quarter and 4.00% in the second quarter a year ago.

•Mortgage banking operations revenue was $3.0 million for the second quarter of 2024, compared to $2.3 million in the preceding quarter and $1.7 million in the second quarter a year ago.

•Return on average assets was 1.02%, compared to 0.97% in the preceding quarter and 1.02% in the second quarter a year ago.

•Net loans receivable increased 3% to $10.99 billion at June 30, 2024, compared to $10.72 billion at March 31, 2024, and increased 6% compared to $10.33 billion at June 30, 2023.

•Non-performing assets were $33.3 million, or 0.21% of total assets, at June 30, 2024, compared to $29.9 million, or 0.19% of total assets, at March 31, 2024 and $28.7 million, or 0.18% of total assets, at June 30, 2023.

•The allowance for credit losses - loans was $152.8 million, or 1.37% of total loans receivable, as of June 30, 2024, compared to $151.1 million, or 1.39% of total loans receivable, as of March 31, 2024 and $144.7 million, or 1.38% of total loans receivable, as of June 30, 2023.

•Total deposits decreased to $13.08 billion at June 30, 2024, compared to $13.16 billion at March 31, 2024 and $13.10 billion at June 30, 2023.

•Core deposits represented 88% of total deposits at June 30, 2024.

•Available borrowing capacity was $4.73 billion at June 30, 2024, compared to $5.05 billion at March 31, 2024.

•On-balance sheet liquidity was $2.83 billion at June 30, 2024, compared to $2.77 billion at March 31, 2024.

•Dividends paid to shareholders were $0.48 per share in the quarter ended June 30, 2024.

•Common shareholders’ equity per share increased 1% to $49.07 at June 30, 2024, compared to $48.39 at the preceding quarter end, and increased 9% from $44.91 at June 30, 2023.

•Tangible common shareholders’ equity per share* increased 2% to $38.12 at June 30, 2024, compared to $37.40 at the preceding quarter end, and increased 13% from $33.83 at June 30, 2023.

*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 $132.5 million in the second quarter of 2024, compared to $133.0 million in the preceding quarter and $142.5 million in the second quarter a year ago. Net interest margin on a tax equivalent basis decreased four basis points to 3.70% for the second quarter of 2024, compared to 3.74% in the preceding quarter, and decreased compared to 4.00% in the second quarter a year ago. Net interest margin for the current quarter was impacted by increased funding costs reflecting the persistent high interest rate environment, partially offset by increased yields on loans due to new loans being originated at higher interest rates and adjustable rate loans repricing higher.

Average yields on interest-earning assets increased nine basis points to 5.25% for the second quarter of 2024, compared to 5.16% for the preceding quarter, and increased compared to 4.80% in the second quarter a year ago. Average loan yields increased nine basis points to 5.96%, compared to 5.87% in the preceding quarter, and increased compared to 5.51% in the second quarter a year ago. The increase in average yields, especially loans, during the current quarter reflects the benefit of originating new loans at higher interest rates as well as adjustable rate loans repricing higher. Total deposit costs increased 13 basis points to 1.50% in the second quarter of 2024, compared to 1.37% in the preceding quarter, and compared to 0.64% in the second quarter a year ago. The increase in deposit costs was due to a larger percentage of core deposits being in interest bearing accounts as well as an increase in the mix of higher cost retail CDs. The average rate paid on borrowings increased nine basis points to 5.07% in the second quarter of 2024, compared to 4.98% in the preceding quarter, and compared to 4.60% in the second quarter a year ago. The total cost of funding liabilities increased 13 basis points to 1.66% during the second quarter of 2024, compared to 1.53% in the preceding quarter, and compared to 0.86% in the second quarter a year ago.

A $2.4 million provision for credit losses was recorded in the current quarter (comprised of a $2.0 million provision for credit losses - loans, a $430,000 provision for credit losses - unfunded loan commitments and a $14,000 recapture of provision for credit losses - held-to-maturity debt securities). This compares to a $520,000 provision for credit losses in the prior quarter (comprised of a $1.4 million provision for credit losses - loans, an $887,000 recapture of provision for credit losses - unfunded loan commitments and a $17,000 recapture of provision for credit losses - held-to-maturity debt securities) and a $6.8 million provision for credit losses in the second quarter a year ago (comprised of a $3.6 million provision for credit losses - loans, a $1.2 million provision for credit losses - unfunded loan commitments, a $2.0 million provision for credit losses - available for sale securities and a $16,000 recapture of provision for credit losses - held-to-maturity debt securities). The provision for credit losses for the current quarter primarily reflected loan growth and an increase in the reserve for collateral dependent loans. The provision for credit losses for the preceding quarter primarily reflected loan growth in the construction and one- to four-family loan portfolios and was partially offset by a reduction in unfunded loan commitments in the construction portfolio.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 3

Total non-interest income was $17.2 million in the second quarter of 2024, compared to $11.6 million in the preceding quarter and $8.4 million in the second quarter a year ago. The increase in non-interest income during the current quarter compared to the preceding quarter was primarily due to a $4.3 million decrease in the net loss recognized on the sale of securities. The increase in non-interest income during the current quarter compared to the prior year quarter was primarily due to a $1.3 million increase in mortgage banking operations revenue, a $4.0 million decrease in the net loss recognized on the sale of securities and a $3.0 million decrease in the net loss recognized for fair value adjustments on financial instruments carried at fair value. Total non-interest income was $28.8 million for the six months ended June 30, 2024, compared to $17.7 million for the same period a year earlier.

Mortgage banking operations revenue was $3.0 million in the second quarter of 2024, compared to $2.3 million in the preceding quarter and $1.7 million in the second quarter a year ago. The volume of one- to four-family loans sold during the current quarter increased compared to the prior year quarter, although overall volumes remained low due to reduced refinancing and purchase activity in the current rate environment. The increase from the preceding quarter included a $284,000 gain related to the sale of $19.8 million of one- to four-family portfolio loans during the second quarter of 2024. The increase from the preceding quarter also reflects an increase in the percentage of loan sold servicing retained. Home purchase activity accounted for 89% of one- to four-family mortgage loan originations in both the second quarter of 2024 and the preceding quarter and 93% in the second quarter of 2023.

During the second quarter of 2024, non-interest income included a $190,000 net loss for fair value adjustments as a result of changes in the valuation of financial instruments carried at fair value, principally comprised of limited partnership investments, and a $562,000 net loss on the sale of securities, related to a security with a premium that was called early. In the preceding quarter, non-interest income included a $992,000 net loss for fair value adjustments and a $4.9 million net loss on the sale of securities. In the second quarter a year ago, non-interest income included a $3.2 million net loss for fair value adjustments and a $4.5 million net loss on the sale of securities.

Total non-interest expense was $98.1 million in the second quarter of 2024, compared to $97.6 million in the preceding quarter and $95.4 million in the second quarter of 2023. The increase in non-interest expense for the current quarter compared to the prior quarter reflects a $1.5 million increase in salary and employee benefits, primarily resulting from normal annual salary and wage increases and an increase in loan production related commission expense, partially offset by a $963,000 increase in capitalized loan origination costs, primarily due to increased loan production. The increase in non-interest expense for the current quarter compared to the same quarter a year ago primarily reflects increases in salary and employee benefits and payment and card processing services expense, partially offset by a decrease in professional and legal expenses. For the six months ended June 30, 2024, total non-interest expense was $195.8 million, compared to $190.0 million for the six months ended June 30, 2023. Banner’s efficiency ratio was 65.53% for the second quarter of 2024, compared to 67.55% in the preceding quarter and 63.21% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 63.60% for the second quarter of 2024, compared to 63.70% in the preceding quarter and 58.58% in the year ago quarter. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures.

Federal and state income tax expense totaled $9.5 million for the second quarter of 2024 resulting in an effective tax rate of 19.2%, reflecting the benefits from tax exempt income. Banner’s statutory income tax rate for the quarter ended June 30, 2024, was 23.7%, representing a blend of the statutory federal income tax rate of 21.0% and apportioned effects of the state income tax rates.

Balance Sheet Review

Total assets increased to $15.82 billion at June 30, 2024, compared to $15.52 billion at March 31, 2024, and $15.58 billion at June 30, 2023. Securities and interest-bearing deposits held at other banks totaled $3.27 billion at June 30, 2024, compared to $3.32 billion at March 31, 2024 and $3.64 billion at June 30, 2023. The decrease compared to the prior quarter was primarily due to normal cash flows from the securities portfolio. The average effective duration of the securities portfolio was approximately 6.5 years at June 30, 2024, compared to 6.8 years at June 30, 2023.

Total loans receivable increased to $11.14 billion at June 30, 2024, compared to $10.87 billion at March 31, 2024, and $10.47 billion at June 30, 2023. One- to four-family residential loans increased 2% to $1.60 billion at June 30, 2024, compared to $1.57 billion at March 31, 2024, and increased 20% compared to $1.34 billion at June 30, 2023. The increase in one- to four-family residential loans was the result of one- to four-family construction loans converting to one- to four-family portfolio loans upon the completion of the construction phase and new loan production, partially offset by the sale of $19.8 million of one- to four-family portfolio loans. Multifamily real estate loans decreased 11% to $717.1 million at June 30, 2024, compared to $809.1 million at March 31, 2024, and increased 2% compared to $699.8 million at June 30, 2023. The decrease in multifamily real estate compared to March 31, 2024 was primarily due to certain affordable housing loans transferring to small balance commercial real estate. The increase in multifamily real estate loans from June 30, 2023 was primarily the result of the conversion of affordable housing multifamily construction loans to the multifamily portfolio upon the completion of the construction phase as well as the transfer of $43.5 million of multifamily loans held for sale to the held for investment loan portfolio in the fourth quarter of 2023, partially offset by the transfer of certain affordable housing loans to small balance commercial real estate. Construction, land and land development loans increased 7% to $1.68 billion at June 30, 2024, compared to $1.57 billion at March 31, 2024, and increased 11% compared to $1.51 billion at June 30, 2023. The increase in construction, land and land development loans was primarily the result of new loan production and advances on multifamily construction loans, primarily related to affordable housing projects. Agricultural business loans increased 5% to $334.6 million at June 30, 2024, compared to $318.0 million at March 31, 2024 and increased 8% compared to $310.1 million at June 30, 2023, primarily due to new loan production and advances on agricultural lines of credit.

Loans held for sale were $13.4 million at June 30, 2024, compared to $9.4 million at March 31, 2024 and $60.6 million at June 30, 2023. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $75.0 million, compared to $65.9 million in the preceding quarter and $62.6 million in the second quarter a year ago. The decrease in loans held for sale compared to June 30, 2023 was due to the previously mentioned transfer of multifamily loans held for sale to the held for investment loan portfolio in the fourth quarter of 2023. There were no multifamily loans held for sale at June 30, 2024 or March 31, 2024.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 4

Total deposits decreased to $13.08 billion at June 30, 2024, compared to $13.16 billion at March 31, 2024 and $13.10 billion a year ago. Core deposits decreased 1% to $11.55 billion at June 30, 2024, compared to $11.67 billion at March 31, 2024, and decreased 2% compared to $11.74 billion at June 30, 2023. The decrease in core deposits primarily reflects clients using deposits for seasonal tax payments. Core deposits were 88% of total deposits at June 30, 2024, compared to 89% of total deposits at March 31, 2024 and 90% of total deposits at June 30, 2023. Certificates of deposit increased 3% to $1.53 billion at June 30, 2024, compared to $1.49 billion at March 31, 2024, and increased 12% compared to $1.36 billion a year earlier. The increase in certificates of deposit during the current quarter compared to the preceding quarter and second quarter a year ago was principally due to clients seeking higher yields moving funds from core deposit accounts to higher yielding certificates of deposit. The increase in certificates of deposit from the second quarter a year ago was partially offset by a $98.3 million decrease in brokered deposits.

Banner Bank’s estimated uninsured deposits were $4.09 billion or 31% of total deposits at June 30, 2024, compared to $4.18 billion or 31% of total deposits at March 31, 2024. The uninsured deposit calculation includes $326.5 million and $316.6 million of collateralized public deposits at June 30, 2024 and March 31, 2024, respectively. Uninsured deposits also include cash held by the holding company of $63.9 million and $113.9 million at June 30, 2024 and March 31, 2024, respectively. Banner Bank’s estimated uninsured deposits, excluding collateralized public deposits and cash held at the holding company, were 28% of total deposits at both June 30, 2024 and March 31, 2024.

Banner had $398.0 million of FHLB advances at June 30, 2024, compared to $52.0 million at March 31, 2024 and $270.0 million a year ago. At June 30, 2024, Banner’s off-balance sheet liquidity included additional borrowing capacity of $3.02 billion at the FHLB and $1.59 billion at the Federal Reserve as well as federal funds line of credit agreements with other financial institutions of $125.0 million.

At June 30, 2024, total common shareholders’ equity was $1.69 billion, or 10.69% of total assets, compared to $1.66 billion or 10.73% of total assets at March 31, 2024, and $1.54 billion or 9.90% of total assets at June 30, 2023. The increase in total common shareholders’ equity at June 30, 2024 compared to March 31, 2024 was primarily due to a $23.1 million increase in retained earnings as a result of $39.8 million in net income, partially offset by the accrual of $16.7 million of cash dividends during the second quarter of 2024. At June 30, 2024, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.31 billion, or 8.51% of tangible assets, compared to $1.29 billion, or 8.50% of tangible assets, at March 31, 2024, and $1.16 billion, or 7.64% of tangible assets, a year ago. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

Banner and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized.” At June 30, 2024, Banner’s estimated common equity Tier 1 capital ratio was 12.02%, its estimated Tier 1 leverage capital to average assets ratio was 10.80%, and its estimated total capital to risk-weighted assets ratio was 14.62%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

Credit Quality

The allowance for credit losses - loans was $152.8 million, or 1.37% of total loans receivable and 498% of non-performing loans, at June 30, 2024, compared to $151.1 million, or 1.39% of total loans receivable and 513% of non-performing loans, at March 31, 2024, and $144.7 million, or 1.38% of total loans receivable and 513% of non-performing loans, at June 30, 2023. 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 June 30, 2024, compared to $13.6 million at March 31, 2024, and $14.7 million at June 30, 2023. Net loan charge-offs totaled $245,000 in the second quarter of 2024, compared to net loan recoveries of $73,000 in the preceding quarter and net loan charge-offs of $336,000 in the second quarter a year ago. Non-performing loans were $30.7 million at June 30, 2024, compared to $29.5 million at March 31, 2024, and $28.2 million a year ago.

Substandard loans were $122.0 million at June 30, 2024, compared to $116.1 million at March 31, 2024 and $145.0 million a year ago. The increase from the prior quarter reflects downgrades of loans, partially offset by paydowns and payoffs of substandard loans. The decrease from the prior year quarter primarily reflects paydowns and payoffs of substandard loans as well as risk rating upgrades.

Total non-performing assets were $33.3 million, or 0.21% of total assets, at June 30, 2024, compared to $29.9 million, or 0.19% of total assets, at March 31, 2024, and $28.7 million, or 0.18% of total assets, a year ago.

Conference Call

Banner will host a conference call on Thursday July 18, 2024, at 8:00 a.m. PDT, to discuss its second quarter results. Interested investors may listen to the call live at www.bannerbank.com. Investment professionals are invited to dial (833) 470-1428 using access code 005428 to participate in the call. A replay of the call will be available at www.bannerbank.com.

About the Company

Banner Corporation is a $15.82 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 5

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “potential,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made and based only on information then actually known to Banner. Banner does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These statements may relate to future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial information. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements and could negatively affect Banner’s operating and stock price performance.

Factors that could cause Banner’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: (1) potential 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 employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth, or increased political instability due to acts of war; (2) changes in the interest rate environment, including past increases in the Board of Governors of the Federal Reserve System (the “Federal Reserve”) benchmark rate and duration at which such increased interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; (3) the impact of continuing elevated inflation and the current and future monetary policies of the Federal Reserve in response thereto; (4) the effects of any federal government shutdown; (5) 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; (6) expectations regarding key growth initiatives and strategic priorities; (7) the credit risks of 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; (8) results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require increases in the allowance for credit losses or writing down of assets or impose restrictions or penalties with respect to Banner’s activities; (9) competitive pressures among depository institutions; (10) the effect of inflation on interest rate movements and their impact on client behavior and net interest margin; (11) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (12) fluctuations in real estate values; (13) the ability to adapt successfully to technological changes to meet clients’ needs and developments in the market place; (14) the ability to access cost-effective funding; (15) disruptions, security breaches or other adverse events, failures or interruptions in, or attacks on, information technology systems or on the third-party vendors who perform critical processing functions; (16) changes in financial markets; (17) changes in economic conditions in general and in Washington, Idaho, Oregon and California in particular; (18) the costs, effects and outcomes of litigation; (19) legislation or regulatory changes, including but not limited to changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws or interpretations thereof by taxing authorities; (20) changes in accounting principles, policies or guidelines; (21) future acquisitions by Banner of other depository institutions or lines of business; (22) future goodwill impairment due to changes in Banner’s business or changes in market conditions; (23) 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; (24) environmental, social and governance goals and targets; (25) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (26) other risks detailed from time to time in Banner’s other reports filed with and furnished to the Securities and Exchange Commission including Banner’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 6


RESULTS OF OPERATIONS	Quarters Ended						Six Months Ended
(in thousands except shares and per share data)	Jun 30, 2024		Mar 31, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
INTEREST INCOME:
Loans receivable	$	161,191	$	156,475	$	140,848	$	317,666	$	274,105
Mortgage-backed securities	16,708		16,934		18,285		33,642		37,263
Securities and cash equivalents	11,239		11,279		12,676		22,518		27,402
Total interest income	189,138		184,688		171,809		373,826		338,770
INTEREST EXPENSE:
Deposits	48,850		44,613		20,539		93,463		29,783
Federal Home Loan Bank (FHLB) advances	3,621		2,972		5,157		6,593		6,421
Other borrowings	1,160		1,175		771		2,335		1,152
Subordinated debt	2,961		2,969		2,824		5,930		5,584
Total interest expense	56,592		51,729		29,291		108,321		42,940
Net interest income	132,546		132,959		142,518		265,505		295,830
PROVISION FOR CREDIT LOSSES	2,369		520		6,764		2,889		6,240
Net interest income after provision for credit losses	130,177		132,439		135,754		262,616		289,590
NON-INTEREST INCOME:
Deposit fees and other service charges	10,590		11,022		10,600		21,612		21,162
Mortgage banking operations	3,006		2,335		1,686		5,341		4,377
Bank-owned life insurance	2,367		2,237		2,386		4,604		4,574
Miscellaneous	1,988		1,892		1,428		3,880		3,068
	17,951		17,486		16,100		35,437		33,181
Net loss on sale of securities	(562)		(4,903)		(4,527)		(5,465)		(11,779)

Net change in valuation of financial instruments carried at fair value	(190)		(992)		(3,151)		(1,182)		(3,703)


Total non-interest income	17,199		11,591		8,422		28,790		17,699
NON-INTEREST EXPENSE:
Salary and employee benefits	63,831		62,369		61,972		126,200		123,361
Less capitalized loan origination costs	(4,639)		(3,676)		(4,457)		(8,315)		(7,888)
Occupancy and equipment	12,128		12,462		11,994		24,590		23,964
Information and computer data services	7,240		7,320		7,082		14,560		14,229
Payment and card processing services	5,691		5,710		4,669		11,401		9,287
Professional and legal expenses	1,201		1,530		2,400		2,731		4,521
Advertising and marketing	1,198		1,079		940		2,277		1,746
Deposit insurance	2,858		2,809		2,839		5,667		4,729
State and municipal business and use taxes	1,394		1,304		1,229		2,698		2,529
Real estate operations, net	297		(220)		75		77		(202)
Amortization of core deposit intangibles	724		723		991		1,447		2,041

Miscellaneous	6,205		6,231		5,671		12,436		11,709



Total non-interest expense	98,128		97,641		95,405		195,769		190,026
Income before provision for income taxes	49,248		46,389		48,771		95,637		117,263
PROVISION FOR INCOME TAXES	9,453		8,830		9,180		18,283		22,117
NET INCOME	$	39,795	$	37,559	$	39,591	$	77,354	$	95,146





Earnings per common share:
Basic	$	1.15	$	1.09	$	1.15	$	2.25	$	2.77
Diluted	$	1.15	$	1.09	$	1.15	$	2.24	$	2.76
Cumulative dividends declared per common share	$	0.48	$	0.48	$	0.48	$	0.96	$	0.96
Weighted average number of common shares outstanding:
Basic	34,488,163		34,391,564		34,373,434		34,439,863		34,306,853
Diluted	34,537,012		34,521,105		34,409,024		34,539,620		34,435,221
Increase in common shares outstanding	60,531		46,852		36,087		107,383		150,609

BANR - Second Quarter 2024 Results

July 17, 2024

Page 7


FINANCIAL CONDITION													Percentage Change
(in thousands except shares and per share data)	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Jun 30, 2023			Prior Qtr		Prior Yr Qtr

ASSETS
Cash and due from banks	$	195,163		$	168,427		$	209,634		$	229,918		15.9	%	(15.1)	%
Interest-bearing deposits	52,295			40,849			44,830			51,407			28.0	%	1.7	%
Total cash and cash equivalents	247,458			209,276			254,464			281,325			18.2	%	(12.0)	%
Securities - trading	—			—			—			25,659			nm		(100.0)	%
Securities - available for sale, amortized cost $2,572,544, $2,617,986, $2,729,980 and $2,879,179, respectively	2,197,693			2,244,939			2,373,783			2,465,960			(2.1)	%	(10.9)	%
Securities - held to maturity, fair value $852,709, $869,097, $907,514 and $933,116, respectively	1,023,028			1,038,312			1,059,055			1,098,570			(1.5)	%	(6.9)	%
Total securities	3,220,721			3,283,251			3,432,838			3,590,189			(1.9)	%	(10.3)	%

FHLB stock	27,311			11,741			24,028			20,800			132.6	%	31.3	%

Loans held for sale	13,421			9,357			11,170			60,612			43.4	%	(77.9)	%
Loans receivable	11,143,848			10,869,096			10,810,455			10,472,407			2.5	%	6.4	%
Allowance for credit losses – loans	(152,848)			(151,140)			(149,643)			(144,680)			1.1	%	5.6	%
Net loans receivable	10,991,000			10,717,956			10,660,812			10,327,727			2.5	%	6.4	%
Accrued interest receivable	67,520			66,124			63,100			57,007			2.1	%	18.4	%
Property and equipment, net	126,465			129,889			132,231			135,414			(2.6)	%	(6.6)	%
Goodwill	373,121			373,121			373,121			373,121			—	%	—	%
Other intangibles, net	4,237			4,961			5,684			7,399			(14.6)	%	(42.7)	%
Bank-owned life insurance	307,948			306,600			304,366			301,260			0.4	%	2.2	%
Operating lease right-of-use assets	39,628			40,834			43,731			45,812			(3.0)	%	(13.5)	%
Other assets	397,364			365,169			364,846			384,070			8.8	%	3.5	%
Total assets	$	15,816,194		$	15,518,279		$	15,670,391		$	15,584,736		1.9	%	1.5	%
LIABILITIES
Deposits:
Non-interest-bearing	$	4,537,803		$	4,699,553		$	4,792,369		$	5,369,187		(3.4)	%	(15.5)	%
Interest-bearing transaction and savings accounts	7,016,327			6,973,338			6,759,661			6,373,269			0.6	%	10.1	%
Interest-bearing certificates	1,525,133			1,485,880			1,477,467			1,356,600			2.6	%	12.4	%
Total deposits	13,079,263			13,158,771			13,029,497			13,099,056			(0.6)	%	(0.2)	%
Advances from FHLB	398,000			52,000			323,000			270,000			665.4	%	47.4	%
Other borrowings	165,956			183,341			182,877			193,019			(9.5)	%	(14.0)	%
Subordinated notes, net	89,561			89,456			92,851			92,646			0.1	%	(3.3)	%
Junior subordinated debentures at fair value	66,831			66,586			66,413			67,237			0.4	%	(0.6)	%
Operating lease liabilities	44,056			45,524			48,659			51,234			(3.2)	%	(14.0)	%
Accrued expenses and other liabilities	235,515			211,578			228,428			223,565			11.3	%	5.3	%
Deferred compensation	46,246			46,515			45,975			45,466			(0.6)	%	1.7	%
Total liabilities	14,125,428			13,853,771			14,017,700			14,042,223			2.0	%	0.6	%
SHAREHOLDERS’ EQUITY
Common stock	1,302,236			1,300,969			1,299,651			1,294,934			0.1	%	0.6	%
Retained earnings	686,079			663,021			642,175			587,027			3.5	%	16.9	%
Accumulated other comprehensive loss	(297,549)			(299,482)			(289,135)			(339,448)			(0.6)	%	(12.3)	%
Total shareholders’ equity	1,690,766			1,664,508			1,652,691			1,542,513			1.6	%	9.6	%
Total liabilities and shareholders’ equity	$	15,816,194		$	15,518,279		$	15,670,391		$	15,584,736		1.9	%	1.5	%
Common Shares Issued:


Shares outstanding at end of period	34,455,752			34,395,221			34,348,369			34,344,627
Common shareholders’ equity per share (1)	$	49.07		$	48.39		$	48.12		$	44.91
Common shareholders’ tangible equity per share (1) (2)	$	38.12		$	37.40		$	37.09		$	33.83
Common shareholders’ equity to total assets	10.69		%	10.73		%	10.55		%	9.90		%
Common shareholders’ tangible equity to tangible assets (2)	8.51		%	8.50		%	8.33		%	7.64		%
Consolidated Tier 1 leverage capital ratio	10.80		%	10.71		%	10.56		%	10.22		%

Not meaningful

(1)

Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding.

(2)

Common shareholders’ tangible equity and tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 8


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
													Percentage Change
LOANS	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Jun 30, 2023			Prior Qtr		Prior Yr Qtr

Commercial real estate (CRE):
Owner-occupied	$	950,922		$	905,063		$	915,897		$	894,876		5.1	%	6.3	%
Investment properties	1,536,142			1,544,885			1,541,344			1,558,176			(0.6)	%	(1.4)	%
Small balance CRE	1,234,302			1,159,355			1,178,500			1,172,825			6.5	%	5.2	%
Multifamily real estate	717,089			809,101			811,232			699,830			(11.4)	%	2.5	%
Construction, land and land development:
Commercial construction	173,296			158,011			170,011			183,765			9.7	%	(5.7)	%
Multifamily construction	663,989			573,014			503,993			433,868			15.9	%	53.0	%
One- to four-family construction	490,237			495,931			526,432			547,200			(1.1)	%	(10.4)	%
Land and land development	352,184			344,563			336,639			345,053			2.2	%	2.1	%
Commercial business:
Commercial business	1,298,134			1,262,716			1,255,734			1,313,226			2.8	%	(1.1)	%
Small business scored	1,074,465			1,028,067			1,022,154			982,283			4.5	%	9.4	%
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland	334,583			317,958			331,089			310,120			5.2	%	7.9	%
One- to four-family residential	1,603,266			1,566,834			1,518,046			1,340,126			2.3	%	19.6	%
Consumer:
Consumer—home equity revolving lines of credit	611,739			597,060			588,703			577,725			2.5	%	5.9	%
Consumer—other	103,500			106,538			110,681			113,334			(2.9)	%	(8.7)	%
Total loans receivable	$	11,143,848		$	10,869,096		$	10,810,455		$	10,472,407		2.5	%	6.4	%

Loans 30 - 89 days past due and on accrual	$	11,850		$	19,649		$	19,744		$	6,259
Total delinquent loans (including loans on non-accrual), net	$	32,081		$	39,429		$	43,164		$	29,135
Total delinquent loans / Total loans receivable	0.29		%	0.36		%	0.40		%	0.28		%


LOANS BY GEOGRAPHIC LOCATION											Percentage Change
	Jun 30, 2024				Mar 31, 2024		Dec 31, 2023		Jun 30, 2023		Prior Qtr		Prior Yr Qtr
	Amount		Percentage		Amount		Amount		Amount

Washington	$	5,182,378	46.5	%	$	5,091,912	$	5,095,602	$	4,945,074	1.8	%	4.8	%
California	2,787,190		25.0	%	2,687,114		2,670,923		2,537,121		3.7	%	9.9	%
Oregon	2,072,153		18.6	%	2,013,453		1,974,001		1,913,929		2.9	%	8.3	%
Idaho	641,209		5.8	%	613,155		610,064		595,065		4.6	%	7.8	%
Utah	80,295		0.7	%	72,652		68,931		62,720		10.5	%	28.0	%
Other	380,623		3.4	%	390,810		390,934		418,498		(2.6)	%	(9.1)	%
Total loans receivable	$	11,143,848	100.0	%	$	10,869,096	$	10,810,455	$	10,472,407	2.5	%	6.4	%

BANR - Second Quarter 2024 Results

July 17, 2024

Page 9

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)


LOAN ORIGINATIONS	Quarters Ended
	Jun 30, 2024		Mar 31, 2024		Jun 30, 2023
Commercial real estate	$	102,258	$	67,362	$	94,640
Multifamily real estate	2,774		385		3,441
Construction and land	546,675		437,273		488,980

Commercial business	167,168		154,715		128,404
Agricultural business	22,255		34,406		28,367
One-to four-family residential	34,498		17,568		52,618
Consumer	120,470		66,145		112,555
Total loan originations (excluding loans held for sale)	$	996,098	$	777,854	$	909,005

BANR - Second Quarter 2024 Results

July 17, 2024

Page 10


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
	Quarters Ended
CHANGE IN THE	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023
ALLOWANCE FOR CREDIT LOSSES – LOANS
Balance, beginning of period	$	151,140		$	149,643		$	141,457
Provision for credit losses – loans	1,953			1,424			3,559
Recoveries of loans previously charged off:
Commercial real estate	98			1,389			74


One- to four-family real estate	17			16			36
Commercial business	324			781			524
Agricultural business, including secured by farmland	195			106			2
Consumer	112			159			117
	746			2,451			753
Loans charged off:
Commercial real estate	(347)			—			—

Construction and land	—			—			(156)
One- to four-family real estate	—			—			(4)
Commercial business	(137)			(1,809)			(566)

Consumer	(507)			(569)			(363)
	(991)			(2,378)			(1,089)
Net (charge-offs) recoveries	(245)			73			(336)
Balance, end of period	$	152,848		$	151,140		$	144,680
Net (charge-offs) recoveries / Average loans receivable	(0.002)		%	0.001		%	(0.003)		%



ALLOCATION OF
ALLOWANCE FOR CREDIT LOSSES – LOANS	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023

Commercial real estate	$	39,064		$	43,555		$	43,636
Multifamily real estate	8,253			9,293			8,039
Construction and land	31,597			28,908			29,844
One- to four-family real estate	20,906			20,432			16,737
Commercial business	38,835			35,544			33,880
Agricultural business, including secured by farmland	4,045			3,890			3,573
Consumer	10,148			9,518			8,971
Total allowance for credit losses – loans	$	152,848		$	151,140		$	144,680
Allowance for credit losses - loans / Total loans receivable	1.37		%	1.39		%	1.38		%
Allowance for credit losses - loans / Non-performing loans	498		%	513		%	513		%


	Quarters Ended
CHANGE IN THE	Jun 30, 2024		Mar 31, 2024		Jun 30, 2023
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS
Balance, beginning of period	$	13,597	$	14,484	$	13,443

Provision/(recapture) for credit losses - unfunded loan commitments	430		(887)		1,221

Balance, end of period	$	14,027	$	13,597	$	14,664

BANR - Second Quarter 2024 Results

July 17, 2024

Page 11


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
NON-PERFORMING ASSETS
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Jun 30, 2023
Loans on non-accrual status:
Secured by real estate:
Commercial	$	2,326		$	2,753		$	2,677		$	2,478

Construction and land	3,999			5,029			3,105			2,280
One- to four-family	8,184			7,750			5,702			7,605
Commercial business	8,694			7,355			9,002			8,439
Agricultural business, including secured by farmland	1,586			2,496			3,167			3,997
Consumer	3,380			3,411			3,204			3,272
	28,169			28,794			26,857			28,071
Loans more than 90 days delinquent, still on accrual:
Secured by real estate:


Construction and land	—			286			1,138			—
One- to four-family	1,861			409			1,205			60
Commercial business	—			—			1			—

Consumer	692			—			401			49
	2,553			695			2,745			109
Total non-performing loans	30,722			29,489			29,602			28,180

REO	2,564			448			526			546

Total non-performing assets	$	33,286		$	29,937		$	30,128		$	28,726
Total non-performing assets to total assets	0.21		%	0.19		%	0.19		%	0.18		%


LOANS BY CREDIT RISK RATING
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Jun 30, 2023
Pass	$	10,971,850	$	10,731,015	$	10,671,281	$	10,315,687
Special Mention	50,027		22,029		13,732		11,745
Substandard	121,971		116,052		125,442		144,975

Total	$	11,143,848	$	10,869,096	$	10,810,455	$	10,472,407

BANR - Second Quarter 2024 Results

July 17, 2024

Page 12


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

DEPOSIT COMPOSITION									Percentage Change
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Jun 30, 2023		Prior Qtr		Prior Yr Qtr
Non-interest-bearing	$	4,537,803	$	4,699,553	$	4,792,369	$	5,369,187	(3.4)	%	(15.5)	%
Interest-bearing checking	2,208,742		2,112,799		2,098,526		1,908,402		4.5	%	15.7	%
Regular savings accounts	3,192,036		3,171,933		2,980,530		2,588,298		0.6	%	23.3	%
Money market accounts	1,615,549		1,688,606		1,680,605		1,876,569		(4.3)	%	(13.9)	%
Total interest-bearing transaction and savings accounts	7,016,327		6,973,338		6,759,661		6,373,269		0.6	%	10.1	%
Total core deposits	11,554,130		11,672,891		11,552,030		11,742,456		(1.0)	%	(1.6)	%
Interest-bearing certificates	1,525,133		1,485,880		1,477,467		1,356,600		2.6	%	12.4	%
Total deposits	$	13,079,263	$	13,158,771	$	13,029,497	$	13,099,056	(0.6)	%	(0.2)	%


GEOGRAPHIC CONCENTRATION OF DEPOSITS
	Jun 30, 2024				Mar 31, 2024		Dec 31, 2023		Jun 30, 2023		Percentage Change
	Amount		Percentage		Amount		Amount		Amount		Prior Qtr		Prior Yr Qtr
Washington	$	7,171,699	54.8	%	$	7,258,785	$	7,247,392	$	7,255,731	(1.2)	%	(1.2)	%
Oregon	2,909,838		22.3	%	2,914,605		2,852,677		2,914,267		(0.2)	%	(0.2)	%
California	2,331,793		17.8	%	2,316,515		2,269,557		2,257,247		0.7	%	3.3	%
Idaho	665,933		5.1	%	668,866		659,871		671,811		(0.4)	%	(0.9)	%

Total deposits	$	13,079,263	100.0	%	$	13,158,771	$	13,029,497	$	13,099,056	(0.6)	%	(0.2)	%


INCLUDED IN TOTAL DEPOSITS
	Jun 30, 2024		Mar 31, 2024		Jun 30, 2023
Public non-interest-bearing accounts	$	149,012	$	140,477	$	191,591
Public interest-bearing transaction & savings accounts	250,136		251,161		189,140
Public interest-bearing certificates	29,101		28,821		45,840
Total public deposits	$	428,249	$	420,459	$	426,571
Collateralized public deposits	$	326,524	$	316,554	$	309,665
Total brokered deposits	$	105,309	$	107,527	$	203,649

AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT
	Jun 30, 2024		Mar 31, 2024		Jun 30, 2023
Number of deposit accounts	460,107		461,399		467,490
Average account balance per account	$	29	$	29	$	28

BANR - Second Quarter 2024 Results

July 17, 2024

Page 13


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF JUNE 30, 2024	Actual				Minimum to be categorized as "Adequately Capitalized"				Minimum to be categorized as "Well Capitalized"
	Amount		Ratio		Amount		Ratio		Amount		Ratio

Banner Corporation-consolidated:
Total capital to risk-weighted assets	$	1,955,333	14.62	%	$	1,069,904	8.00	%	$	1,337,380	10.00	%
Tier 1 capital to risk-weighted assets	1,693,543		12.66	%	802,428		6.00	%	802,428		6.00	%
Tier 1 leverage capital to average assets	1,693,543		10.80	%	627,282		4.00	%	n/a		n/a
Common equity tier 1 capital to risk-weighted assets	1,607,043		12.02	%	601,821		4.50	%	n/a		n/a
Banner Bank:
Total capital to risk-weighted assets	1,833,271		13.70	%	1,070,354		8.00	%	1,337,943		10.00	%
Tier 1 capital to risk-weighted assets	1,671,481		12.49	%	802,766		6.00	%	1,070,354		8.00	%
Tier 1 leverage capital to average assets	1,671,481		10.66	%	627,468		4.00	%	784,335		5.00	%
Common equity tier 1 capital to risk-weighted assets	1,671,481		12.49	%	602,074		4.50	%	869,663		6.50	%

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

BANR - Second Quarter 2024 Results

July 17, 2024

Page 14


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Quarters Ended
	Jun 30, 2024						Mar 31, 2024						Jun 30, 2023
	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	$	11,665	$	206	7.10	%	$	9,939	$	167	6.76	%	$	56,073	$	738	5.28	%
Mortgage loans	9,006,857		129,230		5.77	%	8,892,561		125,284		5.67	%	8,413,392		112,097		5.34	%
Commercial/agricultural loans	1,874,039		31,761		6.82	%	1,830,095		30,847		6.78	%	1,768,511		27,683		6.28	%
Consumer and other loans	132,661		2,156		6.54	%	133,854		2,196		6.60	%	138,902		2,137		6.17	%
Total loans (1)	11,025,222		163,353		5.96	%	10,866,449		158,494		5.87	%	10,376,878		142,655		5.51	%
Mortgage-backed securities	2,672,187		16,850		2.54	%	2,728,640		17,076		2.52	%	2,958,700		18,429		2.50	%
Other securities	958,809		11,181		4.69	%	984,639		11,501		4.70	%	1,184,503		12,932		4.38	%

Interest-bearing deposits with banks	58,022		578		4.01	%	45,264		459		4.08	%	44,922		557		4.97	%
FHLB stock	21,080		365		6.96	%	19,073		209		4.41	%	25,611		157		2.46	%
Total investment securities	3,710,098		28,974		3.14	%	3,777,616		29,245		3.11	%	4,213,736		32,075		3.05	%
Total interest-earning assets	14,735,320		192,327		5.25	%	14,644,065		187,739		5.16	%	14,590,614		174,730		4.80	%
Non-interest-earning assets	926,411						943,725						939,100
Total assets	$	15,661,731					$	15,587,790					$	15,529,714
Deposits:
Interest-bearing checking accounts	$	2,156,214	7,621		1.42	%	$	2,104,242	6,716		1.28	%	$	1,870,605	2,331		0.50	%
Savings accounts	3,147,522		17,200		2.20	%	3,066,448		15,279		2.00	%	2,536,713		4,895		0.77	%
Money market accounts	1,659,327		9,124		2.21	%	1,674,159		8,388		2.02	%	1,957,553		6,007		1.23	%
Certificates of deposit	1,503,597		14,905		3.99	%	1,500,429		14,230		3.81	%	1,126,647		7,306		2.60	%
Total interest-bearing deposits	8,466,660		48,850		2.32	%	8,345,278		44,613		2.15	%	7,491,518		20,539		1.10	%
Non-interest-bearing deposits	4,634,738		—		—	%	4,711,922		—		—	%	5,445,960		—		—	%
Total deposits	13,101,398		48,850		1.50	%	13,057,200		44,613		1.37	%	12,937,478		20,539		0.64	%
Other interest-bearing liabilities:
FHLB advances	259,549		3,621		5.61	%	212,989		2,972		5.61	%	390,705		5,157		5.29	%
Other borrowings	175,518		1,160		2.66	%	180,692		1,175		2.62	%	188,060		771		1.64	%
Junior subordinated debentures and subordinated notes	179,178		2,961		6.65	%	181,579		2,969		6.58	%	185,096		2,824		6.12	%
Total borrowings	614,245		7,742		5.07	%	575,260		7,116		4.98	%	763,861		8,752		4.60	%
Total funding liabilities	13,715,643		56,592		1.66	%	13,632,460		51,729		1.53	%	13,701,339		29,291		0.86	%
Other non-interest-bearing liabilities (2)	294,794						303,412						279,232
Total liabilities	14,010,437						13,935,872						13,980,571
Shareholders’ equity	1,651,294						1,651,918						1,549,143
Total liabilities and shareholders’ equity	$	15,661,731					$	15,587,790					$	15,529,714
Net interest income/rate spread (tax equivalent)			$	135,735	3.59	%			$	136,010	3.63	%			$	145,439	3.94	%
Net interest margin (tax equivalent)					3.70	%					3.74	%					4.00	%
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis			(3,189)						(3,051)						(2,921)
Net interest income and margin, as reported			$	132,546	3.62	%			$	132,959	3.65	%			$	142,518	3.92	%
Additional Key Financial Ratios:
Return on average assets					1.02	%					0.97	%					1.02	%
Adjusted return on average assets (4)					1.04	%					1.08	%					1.18	%
Return on average equity					9.69	%					9.14	%					10.25	%
Adjusted return on average equity (4)					9.83	%					10.24	%					11.80	%
Average equity/average assets					10.54	%					10.60	%					9.98	%
Average interest-earning assets/average interest-bearing liabilities					162.27	%					164.16	%					176.74	%
Average interest-earning assets/average funding liabilities					107.43	%					107.42	%					106.49	%
Non-interest income/average assets					0.44	%					0.30	%					0.22	%
Non-interest expense/average assets					2.52	%					2.52	%					2.46	%
Efficiency ratio					65.53	%					67.55	%					63.21	%
Adjusted efficiency ratio (4)					63.60	%					63.70	%					58.58	%

(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 $2.2 million, $2.0 million and $1.8 million for the quarters ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.0 million for both the quarters ended June 30, 2024 and March 31, 2024 and $1.1 million for the quarter ended June 30, 2023.

(4)Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 15


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Six Months Ended
	Jun 30, 2024						Jun 30, 2023
	Average Balance		Interest and Dividends		Yield/Cost (3)		Average Balance		Interest and Dividends		Yield/Cost (3)
Interest-earning assets:
Held for sale loans	$	10,802	$	373	6.94	%	$	54,375	$	1,409	5.23	%
Mortgage loans	8,949,709		254,514		5.72	%	8,340,792		218,997		5.29	%
Commercial/agricultural loans	1,852,067		62,608		6.80	%	1,739,091		52,909		6.14	%
Consumer and other loans	133,258		4,352		6.57	%	138,004		4,252		6.21	%
Total loans (1)	10,945,836		321,847		5.91	%	10,272,262		277,567		5.45	%
Mortgage-backed securities	2,700,413		33,926		2.53	%	3,025,907		37,552		2.50	%
Other securities	971,724		22,682		4.69	%	1,294,743		28,027		4.37	%

Interest-bearing deposits with banks	51,643		1,037		4.04	%	49,229		1,165		4.77	%
FHLB stock	20,077		574		5.75	%	19,955		247		2.50	%
Total investment securities	3,743,857		58,219		3.13	%	4,389,834		66,991		3.08	%
Total interest-earning assets	14,689,693		380,066		5.20	%	14,662,096		344,558		4.74	%
Non-interest-earning assets	935,068						930,208
Total assets	$	15,624,761					$	15,592,304
Deposits:
Interest-bearing checking accounts	$	2,130,228	14,337		1.35	%	$	1,825,386	3,237		0.36	%
Savings accounts	3,106,985		32,479		2.10	%	2,575,726		6,779		0.53	%
Money market accounts	1,666,743		17,512		2.11	%	2,061,767		9,806		0.96	%
Certificates of deposit	1,502,013		29,135		3.90	%	969,607		9,961		2.07	%
Total interest-bearing deposits	8,405,969		93,463		2.24	%	7,432,486		29,783		0.81	%
Non-interest-bearing deposits	4,673,330		—		—	%	5,701,953		—		—	%
Total deposits	13,079,299		93,463		1.44	%	13,134,439		29,783		0.46	%
Other interest-bearing liabilities:
FHLB advances	236,269		6,593		5.61	%	249,131		6,421		5.20	%
Other borrowings	178,105		2,335		2.64	%	208,645		1,152		1.11	%
Junior subordinated debentures and subordinated notes	180,379		5,930		6.61	%	188,142		5,584		5.99	%
Total borrowings	594,753		14,858		5.02	%	645,918		13,157		4.11	%
Total funding liabilities	13,674,052		108,321		1.59	%	13,780,357		42,940		0.63	%
Other non-interest-bearing liabilities (2)	299,103						286,084
Total liabilities	13,973,155						14,066,441
Shareholders’ equity	1,651,606						1,525,863
Total liabilities and shareholders’ equity	$	15,624,761					$	15,592,304
Net interest income/rate spread (tax equivalent)			$	271,745	3.61	%			$	301,618	4.11	%
Net interest margin (tax equivalent)					3.72	%					4.15	%
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis			(6,240)						(5,788)
Net interest income and margin, as reported			$	265,505	3.63	%			$	295,830	4.07	%
Additional Key Financial Ratios:
Return on average assets					1.00	%					1.23	%
Adjusted return on average assets (4)					1.06	%					1.39	%
Return on average equity					9.42	%					12.57	%
Adjusted return on average equity (4)					10.03	%					14.16	%
Average equity/average assets					10.57	%					9.79	%
Average interest-earning assets/average interest-bearing liabilities					163.21	%					181.50	%
Average interest-earning assets/average funding liabilities					107.43	%					106.40	%
Non-interest income/average assets					0.37	%					0.23	%
Non-interest expense/average assets					2.52	%					2.46	%
Efficiency ratio					66.52	%					60.61	%
Adjusted efficiency ratio (4)					63.65	%					56.33	%

(1)Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans.

(2)Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.

(3)Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $4.2 million and $3.5 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.1 million and $2.3 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 16


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

* Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this earnings release contains certain non-GAAP financial measures. Tangible common shareholders’ equity per share and the ratio of tangible common equity to tangible assets, and references to adjusted revenue, adjusted earnings, the adjusted return on average assets, the adjusted return on average equity and the adjusted efficiency ratio represent non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:

ADJUSTED REVENUE	Quarters Ended						Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
Net interest income (GAAP)	$	132,546	$	132,959	$	142,518	$	265,505	$	295,830
Non-interest income (GAAP)	17,199		11,591		8,422		28,790		17,699
Total revenue (GAAP)	149,745		144,550		150,940		294,295		313,529
Exclude: Net loss on sale of securities	562		4,903		4,527		5,465		11,779

Net change in valuation of financial instruments carried at fair value	190		992		3,151		1,182		3,703


Adjusted revenue (non-GAAP)	$	150,497	$	150,445	$	158,618	$	300,942	$	329,011


ADJUSTED EARNINGS	Quarters Ended									Six Months Ended
	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023
Net income (GAAP)	$	39,795		$	37,559		$	39,591		$	77,354		$	95,146
Exclude: Net loss on sale of securities	562			4,903			4,527			5,465			11,779
Net change in valuation of financial instruments carried at fair value	190			992			3,151			1,182			3,703



Banner Forward expenses (1)	—			—			195			—			338

Related net tax benefit	(180)			(1,415)			(1,890)			(1,595)			(3,797)
Total adjusted earnings (non-GAAP)	$	40,367		$	42,039		$	45,574		$	82,406		$	107,169

Diluted earnings per share (GAAP)	$	1.15		$	1.09		$	1.15		$	2.24		$	2.76
Diluted adjusted earnings per share (non-GAAP)	$	1.17		$	1.22		$	1.32		$	2.39		$	3.11
Return on average assets	1.02		%	0.97		%	1.02		%	1.00		%	1.23		%
Adjusted return on average assets (2)	1.04		%	1.08		%	1.18		%	1.06		%	1.39		%
Return on average equity	9.69		%	9.14		%	10.25		%	9.42		%	12.57		%
Adjusted return on average equity (3)	9.83		%	10.24		%	11.80		%	10.03		%	14.16		%

(1)Included in miscellaneous expenses in results of operations.

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

(3)Adjusted earnings (non-GAAP) divided by average equity.

BANR - Second Quarter 2024 Results

July 17, 2024

Page 17


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIO	Quarters Ended									Six Months Ended
	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023
Non-interest expense (GAAP)	$	98,128		$	97,641		$	95,405		$	195,769		$	190,026


Exclude: Banner Forward expenses (1)	—			—			(195)			—			(338)
CDI amortization	(724)			(723)			(991)			(1,447)			(2,041)
State/municipal tax expense	(1,394)			(1,304)			(1,229)			(2,698)			(2,529)
REO operations	(297)			220			(75)			(77)			202

Adjusted non-interest expense (non-GAAP)	$	95,713		$	95,834		$	92,915		$	191,547		$	185,320

Net interest income (GAAP)	$	132,546		$	132,959		$	142,518		$	265,505		$	295,830
Non-interest income (GAAP)	17,199			11,591			8,422			28,790			17,699
Total revenue (GAAP)	149,745			144,550			150,940			294,295			313,529
Exclude: Net loss on sale of securities	562			4,903			4,527			5,465			11,779
Net change in valuation of financial instruments carried at fair value	190			992			3,151			1,182			3,703

Adjusted revenue (non-GAAP)	$	150,497		$	150,445		$	158,618		$	300,942		$	329,011

Efficiency ratio (GAAP)	65.53		%	67.55		%	63.21		%	66.52		%	60.61		%
Adjusted efficiency ratio (non-GAAP) (2)	63.60		%	63.70		%	58.58		%	63.65		%	56.33		%

(1)Included in miscellaneous expenses in results of operations.

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


TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Jun 30, 2023
Shareholders’ equity (GAAP)	$	1,690,766		$	1,664,508		$	1,652,691		$	1,542,513
Exclude goodwill and other intangible assets, net	377,358			378,082			378,805			380,520
Tangible common shareholders’ equity (non-GAAP)	$	1,313,408		$	1,286,426		$	1,273,886		$	1,161,993

Total assets (GAAP)	$	15,816,194		$	15,518,279		$	15,670,391		$	15,584,736
Exclude goodwill and other intangible assets, net	377,358			378,082			378,805			380,520
Total tangible assets (non-GAAP)	$	15,438,836		$	15,140,197		$	15,291,586		$	15,204,216
Common shareholders’ equity to total assets (GAAP)	10.69		%	10.73		%	10.55		%	9.90		%
Tangible common shareholders’ equity to tangible assets (non-GAAP)	8.51		%	8.50		%	8.33		%	7.64		%

TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP)	$	1,690,766		$	1,664,508		$	1,652,691		$	1,542,513
Tangible common shareholders’ equity (non-GAAP)	$	1,313,408		$	1,286,426		$	1,273,886		$	1,161,993
Common shares outstanding at end of period	34,455,752			34,395,221			34,348,369			34,344,627
Common shareholders’ equity (book value) per share (GAAP)	$	49.07		$	48.39		$	48.12		$	44.91
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)	$	38.12		$	37.40		$	37.09		$	33.83

Photo by Salvador Saldana Photo by Yvonne McDonald Photo by Maria DeVecchio Photo by Siti Alimah Second Quarter 2024

Disclosure Statement 1 This presentation includes forward-looking statements. These statements include descriptions of management’s plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner’s general outlook for economic and other conditions. Additional forward-looking statements may be made in the question-and-answer period following the presentation. These forward- looking statements are subject to several risks and uncertainties and actual results may differ materially from those discussed today. Information on the risk factors that could cause actual results to differ are available from the earnings press release that was released July 17, 2024 as well as the Form 10-K for the year ended December 31, 2023 and Forms 10-Q filed quarterly thereafter. Forward-looking statements are effective only as of the date they are made, and Banner assumes no obligation to update information concerning its expectations.

Second quarter 2024 highlights 2 • Net income of $39.8 million, compared to $37.6 million for the prior quarter • Loan growth of $275 million (10% annualized) • Total loan originations (excluding HFS) were $996 million • Total deposits decreased by $80 million (2% annualized); loan-to-deposit ratio increased from 83% last quarter to 85% • Net interest margin (tax equivalent) decreased 4 basis points to 3.70% • Efficiency ratio (adjusted, non-GAAP) decreased 10 basis points to 63.60% • $2.4 million provision for credit losses driven by loan growth; Allowance for credit losses – loans was 1.37% of total loans • Non-performing assets remained low at 0.21% of total assets, up 2 basis points from last quarter • Kroll Bond Rating Agency, LLC affirmed the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Banner Corporation, and affirmed the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for Banner Bank • Announced dividend of $0.48 per share to be paid in August 2024

Building value at Banner Building value for stakeholders … by focusing on core banking competency … that is sustainable through change events … and scalable with acquisition growth Banner Corporation Assets $15.8B Deposits $13.1B Loans $11.2B Offices 135 Employees 1,949 3 Acquisition History 2019 Q4 2018 Q4 2015 Q4 2015 Q1 2014 Q2 AltaPacific Bank Skagit Bank AmericanWest Bank Siuslaw Bank SW Oregon Branches Assets $0.4B $0.9B $4.5B $0.4B $0.2B Deposits $0.3B $0.8B $3.6B $0.3B $0.2B Loans $0.3B $0.6B $3.0B $0.2B $0.1B Offices 6 11 98 10 6

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

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

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

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

Growing revenue Guard and improve reputation Outstanding CRA Rating FDIC 2021, most recent 3-year examination cycle Most Trustworthy Companies in America Newsweek 2023 and 2024 World’s Most Trustworthy Companies Newsweek 2023 America’s Best Regional Banks Newsweek 2024 Excellence Award for Bank of the Year Q2 Holdings 2023 5-Star rating™ (highest category) BauerFinancial; 10+ years America’s 100 Best Banks Forbes, 8 consecutive years (2017-2024) World’s Best Banks Forbes (2020-2023) Top 50 U.S. Public Banks (assets of $10B+) S&P Global Market Intelligence 2021, 2022 & 2023 8

Growing revenue Deposit Fees as % of Core Revenue 1 Other Fees Mortgage Banking Deposit Fees 9 1. Excludes net gain/loss on sale of securities and change in valuation of financial instruments carried at fair value. Core revenue1 Quarter Ending Quarter Last 12 Months Amount Amount 06/30/24 $150M $616M 12/31/09 $45M $177M Noninterest income1 Quarter Ending Quarter Last 12 Months Amount Amount 06/30/24 $18.0M $70.1M 12/31/09 $6.6M $31.1M Other Income Net Interest Income

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

Protecting net interest margin $ Millions Avg Bal Cost (in bps) Non-Interest 4,635 0 Interest Bearing 6,962 196 CDs 1,504 399 Subtotal Deposits 13,101 150 FHLB & Other 615 507 Total 13,716 166 11 Non-Interest Bearing Certificates of Deposit Interest Bearing and Savings Securities & Int-bearing Deposits Loans Fixed: 4.62% Yield Floating: 8.60% Yield Low Cost Funding Mix 6/30/2024 Adjustable: 5.08% Yield Earning Asset Mix 6/30/2024 Loan Repricing Structure 6/30/2024 $ Millions Avg Bal Yield (in bps) Loans 11,025 596 Securities & Int- bearing Deposits 3,710 314 Total 14,735 525 65% of the loan portfolio is floating/adjustable 71% of the floating/adjustable loans have floors 26% of the loans that have floors are at the floor 15% of the loans that have floors are within 100 basis points of the floor FHLB, Sub Debt & Other

Protecting net interest margin Noncore Deposits Core Deposits Manage deposit costs Quarter Ending Quarter Last 12 Months Amount Rate Amount Rate 06/30/24 $48.9M 1.50% $163.8M 1.25% 12/31/09 $17.7M 1.83% $83.2M 2.21% 12 Focus on core deposits Quarter Ending Balance % of Total Deposits 06/30/24 $11,554M 88% 12/31/09 $1,924M 50% Loan Yield Deposit Cost Core Deposits % Loan–Deposit Spread

Protecting net interest margin Peer Median Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation Net Noncore Funding Dependence Peer Top Quartile 13 Banner Loan-to-Deposit Ratio Deposits Loans

Protecting net interest margin Maintain top quartile net interest margin Quarter Ending Quarter Last 12 Months Amount Rate Amount Rate 06/30/24 $133M 3.62% $546M 3.72% 12/31/09 $39M 3.53% $146M 3.36% Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation 14 Peer Top Quartile Peer Median Net Interest Margin Banner Net Interest Margin Earning Asset Yield Funding Cost

Conservative investment portfolio 15 Assumes flat forward balance sheet, parallel and sustained shift in market rates ratably over a 12-month period (ramp) or immediate (shock); Base as of 6/30/24 12 Month Net Interest Income Sensitivity ($MM), % Change Quarterly New Purchases: Average Duration Investment Portfolio Composition ($3.22 billion) 78% of investments are Agency MBS/CMO or AAA rated 7.3% non-rated investments, principally CRA investments Portfolio is a diversified mix of asset types and blend of fixed and floating rate instruments. It remains moderately asset sensitive. Quarterly New Purchases: Average Yield $ Millions Ramp $MM Ramp % Change Shock $MM Shock % Change Up 200 576,603 0.1% 574,304 (0.3)% Up 100 577,886 0.3% 580,156 0.7% Base 575,960 0.0% 575,960 0.0% Down 100 569,733 (1.1)% 558,863 (3.0)% Down 200 563,957 (2.1)% 541,207 (6.0)%

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

Spending carefully Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation 17 Control core operating expense Quarter Ending Quarter Last 12 Months Amount Amount 06/30/24 $96M $379M 12/31/09 $31M $132M Peer Top Quartile Peer Median Banner Efficiency Ratio Occupancy Compensation Information Services Other Efficiency Ratio

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

Diversified loan portfolio 19 Loan Composition 6/30/2024 CRE Breakout $MM % OO CRE 951 9 % Investment Properties 1,536 14 % Small Balance CRE 1,234 11 % Total Comm CRE 3,721 33 % Construction Breakout $MM % Commercial 173 2 % Multifamily 664 6 % 1-4 Family 490 4 % Land 352 3 % Total Construction 1,680 15 % Loan Originations (commitments, $MM)

20 Characteristics of highlighted loan segments Office 1 Balances ($MM) $630.4 Percent of Total Loans 5.7% Total Investor Office $289.7 Total Owner Occupied $340.6 Average Loan Size $0.8 Largest Loan Size $19.0 30 + days Past Due $0.8 Adversely Classified $6.7 Retail 2 Balances ($MM) $1,310.7 Percent of Total Loans 11.8% Balance of Retail Loans Secured by CRE * $1,187.7 Average Loan Size $0.6 Average CRE Secured Loan Size $0.7 Largest Loan Size $23.3 30 + days Past Due $1.8 Adversely Classified $6.8 * No mall exposure Healthcare 3 Balances ($MM) $402.9 Percent of Total Loans 3.6% Balance Secured by Medical Office * $175.5 Medical Office as a % of Total Loans 1.6% Average Loan Size $0.5 Average Medical Office Size $0.7 Largest Loan Size $16.4 30 + days Past Due $0.3 Adversely Classified $0.4 * No hospital exposure 1 By collateral code 2 Retail business loans, both commercial and commercial real estate secured loans 3 All healthcare and social services, including both commercial and commercial real estate secured loans Multifamily Balances ($MM) $717.1 Percent of Total Loans 6.4% Total Affordable Housing $349.2 Total Market Rent/Middle Income $367.9 Average Loan Size $1.5 Largest Loan Size $18.9 30 + days Past Due $0.0 Adversely Classified $2.2

21 Origination Year Portfolio Segment Balance % Owner Occupied 2024 2023 2022 2021 and earlier Office $630.4 54% $13.8 $41.2 $79.1 $496.4 Retail (CRE Secured) $1,187.7 51% $76.6 $130.9 $185.6 $794.5 Medical Office $175.5 46% $6.7 $9.1 $25.5 $134.2 Multifamily $717.1 0% $4.0 $63.4 $114.0 $535.8 Scheduled Maturity or Next Reprice Date (excludes variable rate loans) Portfolio Segment Balance < 12 months 1 - 2 years 2 - 3 years 3 - 5 years > 5 years Office $630.4 $38.0 $81.3 $123.8 $165.0 $161.7 Retail (CRE Secured) $1,187.7 $116.9 $126.8 $192.8 $321.7 $228.2 Medical Office $175.5 $5.6 $23.9 $21.3 $39.4 $43.0 Multifamily $717.1 $11.1 $67.3 $144.7 $98.3 $342.3 Characteristics of highlighted loan segments

Allowance for credit losses 22 Net charge-offs Portfolio Economic factors Provision Change assessment: Changes to allowance: $ Millions ACL - Loans 151.1 3.8 (2.1) (0.2) 2.0 152.8 ACL - Unfunded Commitments 13.6 (0.2) 0.6 — 0.4 14.0 ACL - HTM Securities 0.3 — — — — 0.3 Total ACL 165.1 3.6 (1.5) (0.2) 2.4 167.2 Allocation of Allowance for Credit Losses-Loans Allowance ($000) % coverage Non Performing % Coverage NPLs Commercial RE 39,064 1.05% 2,326 1,679% Multifamily 8,253 1.15% — —% Construction 31,597 1.88% 3,999 790% 1-4 Family 20,906 1.30% 10,045 208% Commercial 38,835 1.64% 8,694 447% Agricultural 4,045 1.21% 1,586 255% Consumer 10,148 1.42% 4,072 249% Total 152,848 1.37% 30,722 498%

Minimize nonperforming assets Quarter Ending NPAs REO Amount % of TA Amount % of TA 06/30/24 $33M 0.21% $3M 0.02% 12/31/09 $292M 6.11% $78M 2.01% Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Supervision and Regulation Maintaining a moderate risk profile ACLL Real Estate Owned Nonperforming Loans Peer Top Quartile Peer Median Banner ACLL to Total Loans 23

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

Reconciliation of non-GAAP measures 25 $ Thousands Quarters Ended PRE-TAX PRE-PROVISION EARNINGS Jun 30, 2024 Mar 31, 2024 Jun 30, 2023 Income before provision for income taxes (GAAP) $ 49,248 $ 46,389 $ 48,771 Provision for credit losses 2,369 520 6,764 Pretax pre provision earnings (non-GAAP) 51,617 46,909 55,535 Exclude net loss/(gain) on sale of securities 562 4,903 4,527 Exclude net change in valuation of financial instruments carried at fair value 190 992 3,151 Exclude Banner Forward expenses — — 195 Adjusted pretax pre provision earnings (non-GAAP) $ 52,369 $ 52,804 $ 63,408

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

Cover	Jul. 17, 2024
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 17, 2024
Entity Registrant Name	Banner Corporation
Entity Incorporation, State or Country Code	WA
Entity File Number	000-26584
Entity Tax Identification Number	91-1691604
Entity Address, Address Line One	10 S. First Avenue,
Entity Address, City or Town	Walla Walla
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	99362
City Area Code	509
Local Phone Number	527-3636
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	BANR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000946673
Amendment Flag	false

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BANR Banner Corporation