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

Banner Corporation Reports Net Income of $51.2 Million, or $1.49 Per Diluted Share, for Fourth Quarter 2025;
Earns $195.4 Million in Net Income, or $5.64 Per Diluted Share, for the Full Year of 2025;
Declares Quarterly Cash Dividend of $0.50 Per Share

Walla Walla, WA - January 21, 2026 - Banner Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $51.2 million, or $1.49 per diluted share, for the fourth quarter of 2025, compared to $53.5 million, or $1.54 per diluted share, for the preceding quarter and $46.4 million, or $1.34 per diluted share, for the fourth quarter of 2024. Net interest income was $152.4 million for the fourth quarter of 2025, compared to $150.0 million in the preceding quarter and $140.5 million for the fourth quarter a year ago. The increase in net interest income compared to both the preceding quarter and the prior year quarter primarily reflects a decrease in overall funding costs and an increase in the average balance of interest-earning assets. The increase compared to the prior year quarter also reflects an increase in the average yield of interest-earning assets. Fourth quarter 2025 results included a $2.4 million provision for credit losses, compared to $2.7 million in the preceding quarter and $3.0 million in the fourth quarter of 2024. Net income was $195.4 million, or $5.64 per diluted share, for the year ended December 31, 2025, compared to net income of $168.9 million, or $4.88 per diluted share, for the year ended December 31, 2024. Banner’s results for the year ended December 31, 2025 include a $13.0 million provision for credit losses, a $374,000 net gain on the sale of securities and a $1.4 million net decrease in the fair value adjustments on financial instruments carried at fair value, compared to a $7.6 million provision for credit losses, a $5.2 million net loss on the sale of securities and a $1.0 million net decrease in the fair value adjustments on financial instruments carried at fair value during the same period in 2024.
Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.50 per share payable February 13, 2026, to common shareholders of record on February 3, 2026.
“Banner’s fourth quarter performance reaffirms the value 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 fourth quarter of 2025 benefited from year over year loan growth as well as lower funding costs and an improved net interest margin. The strategic investments we have made across the organization are delivering tangible returns and are further strengthening Banner for long-term success. Additionally, Banner’s credit quality remains strong, 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 year-end. For 135 years, Banner has honored 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 earn trust, navigate change with confidence and continue building a strong foundation for the future.”
At December 31, 2025, Banner, on a consolidated basis, had $16.35 billion in assets, $11.56 billion in net loans and $13.74 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 - Fourth Quarter 2025 Results
January 21, 2026
Page 2
Fourth Quarter 2025 Highlights
•Net interest margin, on a tax equivalent basis, was 4.03% for the current quarter, compared to 3.98% in the preceding quarter and 3.82% in the fourth quarter a year ago.
•Revenue was $167.7 million for the fourth quarter of 2025, compared to $170.7 million in the preceding quarter and increased 4% from $160.6 million in the fourth 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 $169.9 million in the fourth quarter of 2025, compared to $168.7 million in the preceding quarter and $160.1 million in the fourth quarter a year ago.
•Net interest income was $152.4 million in the fourth quarter of 2025, compared to $150.0 million in the preceding quarter and increased 8% from $140.5 million in the fourth quarter a year ago.
•Mortgage banking operations revenue was $3.6 million for the fourth quarter of 2025, compared to $3.3 million in the preceding quarter and $3.7 million the fourth quarter a year ago.
•Return on average assets was 1.24% for the fourth quarter of 2025, compared to 1.30% in the preceding quarter and 1.15% in the fourth quarter a year ago.
•Net loans receivable were $11.56 billion at December 31, 2025, compared to $11.54 billion at September 30, 2025, and increased 3% compared to $11.20 billion at December 31, 2024.
•Total deposits were $13.74 billion at December 31, 2025, compared to $14.02 billion at September 30, 2025 and $13.51 billion at December 31, 2024.
•Core deposits represented 89% of total deposits at December 31, 2025.
•Non-performing assets were $51.2 million, or 0.31% of total assets, at December 31, 2025, compared to $45.3 million, or 0.27% of total assets, at September 30, 2025, and $39.6 million, or 0.24% of total assets, at December 31, 2024.
•The allowance for credit losses - loans was $160.3 million, or 1.37% of total loans receivable, as of December 31, 2025, compared to $159.7 million, or 1.36% of total loans receivable, as of September 30, 2025, and $155.5 million, or 1.37% of total loans receivable, as of December 31, 2024.
•Dividends paid to shareholders were $0.50 per share in the quarter ended December 31, 2025, up from $0.48 per share paid in the preceding quarter.
•Common shareholders’ equity per share increased 2% to $57.08 at December 31, 2025, compared to $55.71 at the preceding quarter end, and increased 11% from $51.49 at December 31, 2024.
•Tangible common shareholders’ equity per share* increased 3% to $46.09 at December 31, 2025, compared to $44.79 at September 30, 2025, and increased 14% from $40.57 at December 31, 2024.
•Repurchased 249,975 shares of Banner common stock during the fourth quarter of 2025 at an average price of $63.14 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 $152.4 million in the fourth quarter of 2025, compared to $150.0 million in the preceding quarter and $140.5 million in the fourth quarter a year ago. Net interest margin, on a tax equivalent basis, increased five basis points to 4.03% for the fourth quarter of 2025, compared to 3.98% in the preceding quarter, and increased 21 basis points from 3.82% in the fourth quarter a year ago. The net interest margin for the current quarter benefited from lower funding costs.
Interest income was $205.0 million in the fourth quarter of 2025, compared to $205.8 million in the preceding quarter and $196.4 million in the fourth quarter of 2024. Average yields on interest-earning assets decreased four basis points to 5.39% for the fourth quarter of 2025, compared to 5.43% for the preceding quarter, primarily reflecting lower average loan yields. Compared to the fourth quarter of 2024, average yields on interest-earning assets increased eight basis points from 5.31%, primarily due to increases in both the yield and average balance of loans. Average loan yields decreased seven basis points to 6.10% in the fourth quarter of 2025, compared to 6.17% in the preceding quarter, and increased eight basis points from 6.02% in the fourth quarter a year ago. The decrease in average loan yields during the current quarter was largely the result of three 25 basis point decreases by the Federal Reserve in the target Fed Funds Rate during the third and fourth quarters of 2025.
Interest expense was $52.5 million in the fourth quarter of 2025, compared to $55.9 million in both the preceding quarter and the fourth quarter a year ago. Total deposit costs decreased seven basis points to 1.43% in the fourth quarter of 2025, compared to 1.50% in the preceding quarter and decreased 10 basis points compared to 1.53% in the fourth quarter a year ago. The decrease in deposit costs in the current quarter compared to the same quarter a year ago was primarily due to the previously mentioned decrease in the target Fed Funds Rate. The average rate paid on borrowings decreased 25 basis points to 3.93% in the fourth quarter of 2025, compared to 4.18% in the preceding quarter, and decreased compared to 4.57% in the fourth 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 10 basis points to 1.47% in the fourth quarter of 2025, compared to 1.57% in the preceding quarter, and decreased 13 basis points from 1.60% in the fourth quarter a year ago, primarily due to deposit interest rate declines and decreases in both the average balance and cost of borrowings.
A $2.4 million provision for credit losses was recorded in the current quarter (comprised of a $1.5 million provision for credit losses - loans and a $945,000 provision for credit losses - unfunded loan commitments). This compares to a $2.7 million provision for credit losses in the prior quarter (comprised of a $1.4 million provision for credit losses - loans and a $1.3 million provision for credit losses - unfunded loan commitments) and a $3.0 million provision for credit losses in the fourth quarter a year ago (comprised of a $3.2 million provision for credit losses - loans and a $203,000 recapture of provision for credit losses - unfunded loan commitments).

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 3
Total non-interest income was $15.2 million in the fourth quarter of 2025, compared to $20.7 million in the preceding quarter and $20.0 million in the fourth quarter a year ago. The decrease from the preceding quarter was primarily due to a $2.7 million decline in miscellaneous income, reflecting losses incurred on the disposition of assets during the current quarter, compared to gains recognized on asset sales in the prior quarter. In addition, fair value adjustments on financial instruments carried at fair value decreased by $2.2 million during the current quarter. Compared to the fourth quarter of 2024, the decrease in non-interest income was also primarily attributable to lower miscellaneous income, reflecting losses incurred on asset dispositions during the current quarter, compared to a gain recognized on the sale of a non-performing loan in the fourth quarter of 2024. Total non-interest income was $72.8 million for the year ended December 31, 2025, compared to $66.9 million for the same period a year earlier.
Mortgage banking operations revenue was $3.6 million in the fourth quarter of 2025, compared to $3.3 million in the preceding quarter and $3.7 million in the fourth quarter a year ago. The volume of one- to four-family loans sold during the fourth quarter of 2025 decreased compared to both the preceding quarter and the prior year quarter. The decrease compared to the preceding quarter was primarily due to seasonal trends and market conditions. The decrease from the same quarter in the prior year was mainly attributable to a pooled loan sale that occurred during the fourth quarter of 2024. Home purchase activity accounted for 81% of one- to four-family mortgage loan originations in the fourth quarter of 2025, compared to 88% in the preceding quarter and 79% in the fourth quarter of 2024.
Total non-interest expense was $104.1 million in the fourth quarter of 2025, compared to $102.0 million in the preceding quarter and $99.5 million in the fourth quarter of 2024. The increase from the previous quarter reflected a $493,000 increase in salary and employee benefits, resulting from increased medical claims expense, a $639,000 decrease in capitalized loan origination costs, primarily due to a reduction in the origination of construction, land and land development loans, as well as a reduction in the volume of one- to four-family loans sold, an $842,000 increase in information and computer data services expense, primarily due to increased software expense, and a $411,000 increase in professional and legal expenses, primarily due to a pending legal settlement. The increases were partially offset by a $666,000 decrease in occupancy and equipment costs, primarily due to lower rent expense. In addition, the current quarter included losses of $434,000 related to building and lease exit costs, compared to $1.0 million 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, payment and card processing services and miscellaneous expenses, partially offset by a decrease in professional and legal expenses. For the year ended December 31, 2025, total non-interest expense was $408.8 million, compared to $391.5 million for the year ended December 31, 2024.
Banner’s efficiency ratio was 62.11% for the fourth quarter of 2025, compared to 59.76% in the preceding quarter and 61.95% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 59.87% for the fourth quarter of 2025, compared to 58.54% in the preceding quarter and 60.74% in the year-ago quarter. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures.
Balance Sheet Review
Total assets were $16.35 billion at December 31, 2025, compared to $16.56 billion at September 30, 2025, and $16.20 billion at December 31, 2024. The decrease compared to the prior quarter was primarily due to a decrease in interest-bearing deposits held at other banks. Securities and interest-bearing deposits held at other banks totaled $3.22 billion at December 31, 2025, compared to $3.47 billion at September 30, 2025 and $3.40 billion at December 31, 2024. The average effective duration of the securities portfolio was approximately 6.2 years and 6.6 years at December 31, 2025 and December 31, 2024, respectively.
Total loans receivable were $11.72 billion at December 31, 2025, compared to $11.70 billion at September 30, 2025, and increased 3% from $11.35 billion at December 31, 2024. Commercial real estate loans totaled $4.05 billion at December 31, 2025, compared to $4.00 billion at September 30, 2025, and increased 5% from $3.86 billion at December 31, 2024. The increases from both periods reflected a combination of new loan production and the conversion of commercial construction loans to the commercial real estate portfolio upon completion of the construction phase. Multifamily real estate loans decreased to $850.8 million at December 31, 2025, compared to $860.7 million at September 30, 2025, and declined 5% from $894.4 million at December 31, 2024. The decreases from both periods were primarily due to payoffs and paydowns exceeding new production, partially offset by the conversion of multifamily construction loans to the multifamily real estate portfolio upon completion of the construction phase. Construction, land and land development loans totaled $1.71 billion at December 31, 2025, compared to $1.74 billion at September 30, 2025, and increased 13% from $1.52 billion at December 31, 2024. The increase was primarily attributable to new loan production and advances, partially offset by payoffs and transfers to permanent loan portfolios upon completion of the construction phase. Consumer loans increased 4% to $768.5 million at December 31, 2025, compared to $740.3 million at September 30, 2025, and increased 7% compared to $721.4 million at December 31, 2024. The increases from both periods reflected new loan production and advances, primarily related to home equity revolving lines of credit.
Loans held for sale were $42.9 million at December 31, 2025, compared to $20.3 million at September 30, 2025, and $32.0 million at December 31, 2024. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $104.2 million, compared to $136.9 million in the preceding quarter and $153.2 million in the fourth quarter a year ago. The increase in loans held for sale at December 31, 2025 compared to both the preceding quarter and the prior-year quarter was primarily attributable to lower sales volumes of one- to four-family residential mortgage loans held for sale during the current quarter.
Total deposits were $13.74 billion at December 31, 2025, compared to $14.02 billion at September 30, 2025, and $13.51 billion a year ago. Core deposits decreased 2% to $12.21 billion at December 31, 2025, compared to $12.48 billion at September 30, 2025, and increased 2% compared to $12.01 billion at December 31, 2024. The decrease compared to the preceding quarter primarily reflects decreases in non-interest-bearing deposits and interest-bearing transaction and savings accounts, as clients used excess liquidity to paydown operating lines of credit. The increase compared to the prior year quarter primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits remained stable at 89% of total deposits at December 31, 2025, September 30, 2025, and December 31, 2024. Certificates of deposit decreased to $1.53 billion at December 31, 2025, compared to $1.54 billion at September 30, 2025, and increased 2% from $1.50 billion a year earlier.

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 4
FHLB advances increased 50% to $150.0 million at December 31, 2025, compared to $100.0 million at September 30, 2025, and decreased 48% compared to $290.0 million a year ago, as deposits were used as the primary source of funds during the current quarter. At December 31, 2025, off-balance sheet liquidity included additional borrowing capacity of $3.65 billion at the FHLB and $1.55 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million.
At December 31, 2025, total common shareholders’ equity was $1.95 billion, or 11.90% of total assets, compared to $1.91 billion, or 11.55% of total assets at September 30, 2025, and $1.77 billion, or 10.95% of total assets at December 31, 2024. The increase in total common shareholders’ equity from September 30, 2025, was primarily attributable to a $34.0 million increase in retained earnings resulting from $51.2 million in net income, partially offset by the accrual of $17.3 million in cash dividends during the fourth quarter of 2025. In addition, Banner repurchased 249,975 shares of its common stock in the fourth quarter of 2025 at an average price of $63.14 per share. At December 31, 2025, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.57 billion, or 9.84% of tangible assets, compared to $1.54 billion, or 9.50% of tangible assets, at September 30, 2025, and $1.40 billion, or 8.84% 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 December 31, 2025, Banner’s estimated common equity Tier 1 capital ratio was 12.81%, its estimated Tier 1 leverage capital to average assets ratio was 11.41%, and its estimated total capital to risk-weighted assets ratio was 14.69%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.
Credit Quality
The allowance for credit losses - loans was $160.3 million, or 1.37% of total loans receivable and 351% of non-performing loans, at December 31, 2025, compared to $159.7 million, or 1.36% of total loans receivable and 399% of non-performing loans, at September 30, 2025, and $155.5 million, or 1.37% of total loans receivable and 421% of non-performing loans, at December 31, 2024. The allowance ratio remained stable compared to both prior periods, reflecting consistent portfolio composition and credit performance, while continuing to provide substantial coverage of non-performing loans. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $15.0 million at December 31, 2025, compared to $14.0 million at September 30, 2025, and $13.6 million at December 31, 2024. Net loan charge-offs totaled $934,000 in the fourth quarter of 2025, compared to net loan charge-offs of $2.2 million and $2.3 million in the preceding quarter and fourth quarter a year ago, respectively. The decline in net charge-offs during the current quarter reflects stable borrower repayment performance and the absence of any significant credit events. Non-performing loans were $45.6 million at December 31, 2025, compared to $40.0 million at September 30, 2025, and $37.0 million a year ago. Substandard loans were $193.1 million as of December 31, 2025, compared to $174.0 million as of September 30, 2025, and $192.5 million a year ago. Total non-performing assets were $51.2 million, or 0.31% of total assets, at December 31, 2025, compared to $45.3 million, or 0.27% of total assets, at September 30, 2025, and $39.6 million, or 0.24% of total assets, a year ago.

Conference Call
Banner will host a conference call on Thursday, January 22, 2026, at 8:00 a.m. PST, to discuss its fourth 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 013437 to participate in the call. A replay of the call will be available at www.bannerbank.com.
About the Company
Banner Corporation is a $16.35 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 - Fourth Quarter 2025 Results
January 21, 2026
Page 5
Forward-Looking Statements
When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “potential,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made and based only on information then actually known to Banner. Banner does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Forward-looking statements may relate to, among other things, future financial performance, strategic plans or objectives, revenues or earnings projections, and other financial or operational information. These statements are inherently subject to numerous risks and uncertainties, including ongoing market volatility and evolving global conditions, which may cause actual results to differ materially from those expressed or implied. These factors include, but are not limited to: (1) adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of labor shortages, elevated inflation, recessionary pressures, or slowing economic growth; (2) changes in interest rate levels, volatility, and the timing and pace 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, South America, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors, including, but not limited to, agriculture-based lending; (5) the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; (6) the impact of bank failures or adverse developments at other banks and related negative publicity 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 that adversely affect pricing, market share, deposit flows 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 platforms, and cybersecurity; (13) vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; (14) market volatility or deterioration in capital markets affecting liquidity, valuations, or investor confidence; (15) the costs, effects and outcomes of litigation or other legal proceedings involving the Company; (16) legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; (17) climate-related risks and natural disasters, which may affect loan collateral, operations, or compliance obligations; (18) changes in accounting principles, policies or guidelines; (19) the impact of future acquisitions or business combinations, including related goodwill impairment risks and integration challenges; (20) effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; (21) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (22) other risks detailed from time to time in Banner’s other reports filed with and furnished to the Securities and Exchange Commission including Banner’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 6
RESULTS OF OPERATIONSQuarters EndedYear Ended
(in thousands except shares and per share data)Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
INTEREST INCOME:    
Loans receivable$178,908 $179,065 $169,586 $702,023 $655,590 
Mortgage-backed securities14,750 15,090 16,086 61,000 66,085 
Securities and cash equivalents11,322 11,693 10,764 41,932 44,428 
Total interest income204,980 205,848 196,436 804,955 766,103 
INTEREST EXPENSE:    
Deposits50,494 52,251 52,217 200,798 199,465 
Federal Home Loan Bank (FHLB) advances17 1,527 85 5,774 8,941 
Other borrowings693 694 817 2,756 4,299 
Subordinated debt
1,328 1,387 2,781 7,708 11,682 
Total interest expense52,532 55,859 55,900 217,036 224,387 
Net interest income152,448 149,989 140,536 587,919 541,716 
PROVISION FOR CREDIT LOSSES2,441 2,670 3,000 13,045 7,581 
Net interest income after provision for credit losses150,007 147,319 137,536 574,874 534,135 
NON-INTEREST INCOME:    
Deposit fees and other service charges10,681 10,955 11,018 43,240 43,371 
Mortgage banking operations3,617 3,298 3,686 13,244 12,207 
Bank-owned life insurance2,491 2,702 2,144 10,152 9,193 
Miscellaneous446 3,175 2,751 7,188 8,289 
 17,235 20,130 19,599 73,824 73,060 
Net gain (loss) on sale of securities— 377 275 374 (5,190)
Net change in valuation of financial instruments carried at fair value(2,010)223 161 (1,384)(982)
Total non-interest income15,225 20,730 20,035 72,814 66,888 
NON-INTEREST EXPENSE:    
Salary and employee benefits65,428 64,935 62,523 260,706 250,555 
Less capitalized loan origination costs(4,163)(4,802)(4,188)(17,219)(16,857)
Occupancy and equipment11,852 12,518 12,141 48,723 48,771 
Information and computer data services9,041 8,199 7,471 33,067 29,165 
Payment and card processing services6,239 6,060 5,771 23,948 22,518 
Professional and legal expenses2,601 2,190 3,025 9,492 7,858 
Advertising and marketing1,676 1,395 1,711 4,748 5,149 
Deposit insurance2,850 2,867 2,857 11,314 11,398 
State and municipal business and use taxes1,751 1,655 1,518 6,276 5,648 
Real estate operations, net(43)203 113 491 293 
Amortization of core deposit intangibles315 341 589 1,567 2,626 
Miscellaneous6,598 6,461 5,947 25,661 24,414 
Total non-interest expense104,145 102,022 99,478 408,774 391,538 
Income before provision for income taxes61,087 66,027 58,093 238,914 209,485 
PROVISION FOR INCOME TAXES9,838 12,525 11,702 43,532 40,587 
NET INCOME$51,249 $53,502 $46,391 $195,382 $168,898 
Earnings per common share:    
Basic$1.50 $1.55 $1.34 $5.67 $4.90 
Diluted$1.49 $1.54 $1.34 $5.64 $4.88 
Cumulative dividends declared per common share$0.50 $0.48 $0.48 $1.94 $1.92 
Weighted average number of common shares outstanding:    
Basic34,214,220 34,494,824 34,501,016 34,460,854 34,470,057 
Diluted34,408,587 34,659,346 34,743,024 34,656,802 34,628,710 

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 7
FINANCIAL CONDITION  Percentage Change
(in thousands except shares and per share data)Dec 31, 2025Sep 30, 2025Dec 31, 2024Prior QtrPrior Yr Qtr
ASSETS  
Cash and due from banks$182,772 $193,453 $203,402 (6)%(10)%
Interest-bearing deposits239,868 479,410 298,456 (50)%(20)%
Total cash and cash equivalents
422,640 672,863 501,858 (37)%(16)%
Securities - available for sale, amortized cost $2,271,471, $2,292,835 and $2,460,262, respectively
2,016,261 2,018,525 2,104,511 — %(4)%
Securities - held to maturity, fair value $814,668, $815,434 and $825,528, respectively
961,196 971,603 1,001,564 (1)%(4)%
Total securities
2,977,457 2,990,128 3,106,075 — %(4)%
FHLB stock16,476 14,226 22,451 16 %(27)%
Loans held for sale42,902 20,334 32,021 111 %34 %
Loans receivable11,721,687 11,702,538 11,354,656 — %3 %
Allowance for credit losses – loans(160,276)(159,707)(155,521)— %3 %
Net loans receivable
11,561,411 11,542,831 11,199,135 — %3 %
Accrued interest receivable60,525 64,914 60,885 (7)%(1)%
Property and equipment, net111,522 113,848 124,589 (2)%(10)%
Goodwill373,121 373,121 373,121 — %— %
Other intangibles, net1,491 1,806 3,058 (17)%(51)%
Bank-owned life insurance319,347 317,469 312,549 1 %2 %
Operating lease right-of-use assets32,736 35,494 39,998 (8)%(18)%
Other assets434,860 416,047 424,297 5 %2 %
Total assets
$16,354,488 $16,563,081 $16,200,037 (1)%1 %
LIABILITIES  
Deposits:  
Non-interest-bearing$4,489,839 $4,572,338 $4,591,543 (2)%(2)%
Interest-bearing transaction and savings accounts7,721,003 7,903,215 7,423,183 (2)%4 %
Interest-bearing certificates1,532,304 1,540,382 1,499,672 (1)%2 %
Total deposits13,743,146 14,015,935 13,514,398 (2)%2 %
Advances from FHLB150,000 100,000 290,000 50 %(48)%
Other borrowings107,715 120,536 125,257 (11)%(14)%
Subordinated notes, net— — 80,278 — %(100)%
Junior subordinated debentures at fair value79,151 76,251 67,477 4 %17 %
Operating lease liabilities35,755 38,826 43,472 (8)%(18)%
Accrued expenses and other liabilities245,266 251,464 258,070 (2)%(5)%
Deferred compensation47,158 47,177 46,759 — %1 %
Total liabilities14,408,191 14,650,189 14,425,711 (2)%— %
SHAREHOLDERS’ EQUITY  
Common stock1,282,505 1,295,821 1,307,509 (1)%(2)%
Retained earnings871,803 837,826 744,091 4 %17 %
Accumulated other comprehensive loss(208,011)(220,755)(277,274)(6)%(25)%
Total shareholders’ equity1,946,297 1,912,892 1,774,326 2 %10 %
Total liabilities and shareholders’ equity$16,354,488 $16,563,081 $16,200,037 (1)%1 %
Common Shares Issued:  
Shares outstanding at end of period34,097,856 34,335,297 34,459,832 
Common shareholders’ equity per share (1)
$57.08 $55.71 $51.49 
Common shareholders’ tangible equity per share (1) (2)
$46.09 $44.79 $40.57 
Common shareholders’ equity to total assets11.90 %11.55 %10.95 %
Common shareholders’ tangible equity to tangible assets (2)
9.84 %9.50 %8.84 %
Consolidated Tier 1 leverage capital ratio11.41 %11.33 %11.05 %
(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 - Fourth Quarter 2025 Results
January 21, 2026
Page 8
ADDITIONAL FINANCIAL INFORMATION  
(dollars in thousands)  
LOANSPercentage Change
Dec 31, 2025Sep 30, 2025Dec 31, 2024Prior QtrPrior Yr Qtr
Commercial real estate (CRE):  
Owner-occupied$1,138,298 $1,134,559 $1,027,426 — %11 %
Investment properties1,701,413 1,652,141 1,623,672 3 %5 %
Small balance CRE1,212,357 1,210,357 1,213,792 — %— %
Multifamily real estate850,789 860,650 894,425 (1)%(5)%
Construction, land and land development:
Commercial construction156,021 144,125 122,362 8 %28 %
Multifamily construction514,330 586,104 513,706 (12)%— %
One- to four-family construction607,447 578,128 514,220 5 %18 %
Land and land development433,678 427,348 369,663 1 %17 %
Commercial business:
Commercial business1,225,108 1,254,460 1,318,333 (2)%(7)%
Small business scored1,187,360 1,176,889 1,104,117 1 %8 %
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland353,152 354,884 340,280 — %4 %
One- to four-family residential1,573,191 1,582,605 1,591,260 (1)%(1)%
Consumer:
Consumer—home equity revolving lines of credit679,489 649,188 625,680 5 %9 %
Consumer—other89,054 91,100 95,720 (2)%(7)%
Total loans receivable$11,721,687 $11,702,538 $11,354,656 — %3 %
Loans 30 - 89 days past due and on accrual$26,767 $14,674 $26,824 
Total delinquent loans (including loans on non-accrual), net$63,093 $45,529 $55,432 
Total delinquent loans / Total loans receivable0.54 %0.39 %0.49 %

LOANS BY GEOGRAPHIC LOCATIONPercentage Change
Dec 31, 2025Sep 30, 2025Dec 31, 2024Prior QtrPrior Yr Qtr
AmountPercentageAmountAmount
Washington$5,371,200 46 %$5,407,327 $5,245,886 (1)%2 %
California3,105,405 26 %3,064,993 2,861,435 1 %9 %
Oregon2,159,404 18 %2,137,422 2,113,229 1 %2 %
Idaho667,343 6 %668,949 665,158 — %— %
Utah82,594 1 %79,697 82,459 4 %— %
Other335,741 3 %344,150 386,489 (2)%(13)%
Total loans receivable$11,721,687 100 %$11,702,538 $11,354,656 — %3 %

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 9
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

LOAN ORIGINATIONSQuarters EndedYear Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Commercial real estate$136,604 $118,354 $124,554 $508,188 $408,546 
Multifamily real estate4,300 2,500 3,120 29,420 6,593 
Construction and land362,199 369,363 303,345 1,430,337 1,759,799 
Commercial business219,592 167,627 250,515 694,614 752,269 
Agricultural business28,815 7,681 17,177 63,675 79,715 
One-to four-family residential 7,219 6,817 29,531 24,666 106,085 
Consumer108,578 122,193 73,791 413,401 356,543 
Total loan originations (excluding loans held for sale)$867,307 $794,535 $802,033 $3,164,301 $3,469,550 



BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 10
ADDITIONAL FINANCIAL INFORMATION     
(dollars in thousands)     
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS
  Quarters Ended
Year Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Balance, beginning of period$159,707 $160,501 $154,585 $155,521 $149,643 
Provision for credit losses – loans1,503 1,384 3,219 11,637 8,563 
Recoveries of loans previously charged off:
Commercial real estate48 36 1,215 194 2,767 
Construction and land4 725 — 729 — 
One- to four-family real estate14 13 124 273 171 
Commercial business93 99 245 1,110 1,963 
Agricultural business, including secured by farmland68 99 2 178 304 
Consumer83 78 164 448 476 
 310 1,050 1,750 2,932 5,681 
Loans charged off:
Commercial real estate— — (4)— (351)
Construction and land— (218)(5)(218)(150)
One- to four-family real estate— — — (13)— 
Commercial business(837)(518)(3,595)(5,548)(5,955)
Agricultural business, including secured by farmland— (2,054)— (2,416)— 
Consumer(407)(438)(429)(1,619)(1,910)
 (1,244)(3,228)(4,033)(9,814)(8,366)
Net charge-offs(934)(2,178)(2,283)(6,882)(2,685)
Balance, end of period$160,276 $159,707 $155,521 $160,276 $155,521 
Net charge-offs / average loans receivable(0.008)%(0.019)%(0.020)%(0.059)%(0.024)%

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANSDec 31, 2025Sep 30, 2025Dec 31, 2024
Commercial real estate$41,599 $41,191 $40,830 
Multifamily real estate9,805 9,901 10,308 
Construction and land35,508 35,144 29,038 
One- to four-family real estate19,552 20,485 20,807 
Commercial business37,785 37,646 38,611 
Agricultural business, including secured by farmland5,567 5,268 5,727 
Consumer10,460 10,072 10,200 
Total allowance for credit losses – loans$160,276 $159,707 $155,521 
Allowance for credit losses - loans / Total loans receivable1.37 %1.36 %1.37 %
Allowance for credit losses - loans / Non-performing loans351 %399 %421 %

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS
  Quarters Ended
Year Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Balance, beginning of period$14,040 $12,750 $13,765 $13,562 $14,484 
Provision (recapture) for credit losses - unfunded loan commitments945 1,290 (203)1,423 (922)
Balance, end of period$14,985 $14,040 $13,562 $14,985 $13,562 


BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 11
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
NON-PERFORMING ASSETSDec 31, 2025Sep 30, 2025Dec 31, 2024
Loans on non-accrual status:  
Secured by real estate:  
Commercial$525 $460 $2,186 
Construction and land5,175 4,240 3,963 
One- to four-family19,855 16,576 10,016 
Commercial business6,751 6,824 7,067 
Agricultural business, including secured by farmland4,609 5,765 8,485 
Consumer4,610 4,877 4,835 
 41,525 38,742 36,552 
Loans more than 90 days delinquent, still on accrual:  
Secured by real estate:  
Commercial— 274 — 
Construction and land1,268 — — 
One- to four-family2,698 834 369 
Commercial business— 166 — 
Consumer148 — 35 
 4,114 1,274 404 
Total non-performing loans45,639 40,016 36,956 
REO5,578 5,272 2,367 
Other repossessed assets18 — 300 
Total non-performing assets$51,235 $45,288 $39,623 
Total non-performing assets to total assets0.31 %0.27 %0.24 %

LOANS BY CREDIT RISK RATINGDec 31, 2025Sep 30, 2025Dec 31, 2024
Pass$11,446,550 $11,491,485 $11,118,744 
Special Mention82,060 37,013 43,451 
Substandard193,077 174,040 192,461 
Total$11,721,687 $11,702,538 $11,354,656 


BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 12

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands) 
DEPOSIT COMPOSITIONPercentage Change
Dec 31, 2025Sep 30, 2025Dec 31, 2024Prior QtrPrior Yr Qtr
Non-interest-bearing$4,489,839 $4,572,338 $4,591,543 (2)%(2)%
Interest-bearing checking2,609,080 2,734,822 2,393,864 (5)%9 %
Regular savings accounts3,723,922 3,705,823 3,478,423 — %7 %
Money market accounts1,388,001 1,462,570 1,550,896 (5)%(11)%
Total interest-bearing transaction and savings accounts7,721,003 7,903,215 7,423,183 (2)%4 %
Total core deposits12,210,842 12,475,553 12,014,726 (2)%2 %
Interest-bearing certificates1,532,304 1,540,382 1,499,672 (1)%2 %
Total deposits$13,743,146 $14,015,935 $13,514,398 (2)%2 %

GEOGRAPHIC CONCENTRATION OF DEPOSITSDec 31, 2025Sep 30, 2025Dec 31, 2024Percentage Change
AmountPercentageAmountAmountPrior QtrPrior Yr Qtr
Washington$7,500,215 55 %$7,648,527 $7,441,413 (2)%1 %
Oregon3,035,104 22 %3,081,329 2,981,327 (2)%2 %
California2,483,948 18 %2,542,903 2,392,573 (2)%4 %
Idaho723,879 5 %743,176 699,085 (3)%4 %
Total deposits$13,743,146 100 %$14,015,935 $13,514,398 (2)%2 %

INCLUDED IN TOTAL DEPOSITSDec 31, 2025Sep 30, 2025Dec 31, 2024
Public non-interest-bearing accounts$138,860 $139,999 $165,667 
Public interest-bearing transaction & savings accounts234,669 230,192 248,746 
Public interest-bearing certificates34,431 35,660 25,423 
Total public deposits$407,960 $405,851 $439,836 
Collateralized public deposits$312,310 $312,142 $336,376 
Total brokered deposits$50,002 $49,989 $50,346 
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNTDec 31, 2025Sep 30, 2025Dec 31, 2024
Number of deposit accounts445,989 449,087 460,004 
Average account balance per account$31 $31 $30 




BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 13
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF DECEMBER 31, 2025ActualMinimum to be categorized as "Adequately Capitalized"Minimum to be
categorized as
"Well Capitalized"
AmountRatioAmountRatioAmountRatio
Banner Corporation-consolidated:    
      Total capital to risk-weighted assets$2,033,807 14.69 %$1,107,905 8.00 %$1,384,881 10.00 %
      Tier 1 capital to risk-weighted assets1,860,667 13.44 %830,929 6.00 %830,929 6.00 %
      Tier 1 leverage capital to average assets1,860,667 11.41 %652,140 4.00 % n/a  n/a
      Common equity tier 1 capital to risk-weighted assets1,774,167 12.81 %623,197 4.50 % n/a  n/a
Banner Bank:    
      Total capital to risk-weighted assets1,957,619 14.14 %1,107,308 8.00 %1,384,135 10.00 %
      Tier 1 capital to risk-weighted assets1,784,571 12.89 %830,481 6.00 %1,107,308 8.00 %
      Tier 1 leverage capital to average assets1,784,571 10.95 %651,888 4.00 %814,860 5.00 %
      Common equity tier 1 capital to risk-weighted assets1,784,571 12.89 %622,861 4.50 %899,687 6.50 %

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

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 14
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREADQuarters Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024
Average BalanceInterest and Dividends
Yield / Cost (3)
Average BalanceInterest and Dividends
Yield / Cost (3)
Average BalanceInterest and Dividends
Yield / Cost (3)
Interest-earning assets:
Held for sale loans
$31,892 $487 6.06 %$32,109 $531 6.56 %$61,585 $1,049 6.78 %
Real estate secured loans9,759,170 148,310 6.03 %9,651,895 147,682 6.07 %9,267,076 136,831 5.87 %
Commercial/agricultural loans
1,877,966 30,430 6.43 %1,869,782 31,124 6.60 %1,900,337 31,873 6.67 %
Consumer and other loans
119,212 2,076 6.91 %119,593 2,114 7.01 %124,726 2,078 6.63 %
Total loans (1)
11,788,240 181,303 6.10 %11,673,379 181,451 6.17 %11,353,724 171,831 6.02 %
Mortgage-backed securities
2,379,784 14,943 2.49 %2,445,497 15,269 2.48 %2,576,908 16,228 2.51 %
Other securities
869,066 9,141 4.17 %854,725 9,065 4.21 %919,742 10,281 4.45 %
Interest-bearing deposits with banks
293,188 2,786 3.77 %291,147 3,053 4.16 %107,404 1,043 3.86 %
FHLB stock
9,849 300 12.08 %15,729 463 11.68 %9,887 316 12.71 %
Total investment securities3,551,887 27,170 3.03 %3,607,098 27,850 3.06 %3,613,941 27,868 3.07 %
Total interest-earning assets
15,340,127 208,473 5.39 %15,280,477 209,301 5.43 %14,967,665 199,699 5.31 %
Non-interest-earning assets1,081,392   1,022,905 1,016,366   
Total assets
$16,421,519   $16,303,382 $15,984,031   
Deposits:      
Interest-bearing checking accounts
$2,671,378 10,550 1.57 %$2,618,924 10,834 1.64 %$2,377,179 9,279 1.55 %
Savings accounts
3,739,496 19,623 2.08 %3,616,728 20,170 2.21 %3,441,196 19,447 2.25 %
Money market accounts
1,430,674 6,926 1.92 %1,471,938 7,799 2.10 %1,584,092 8,510 2.14 %
Certificates of deposit
1,539,845 13,395 3.45 %1,510,966 13,448 3.53 %1,513,966 14,981 3.94 %
Total interest-bearing deposits
9,381,393 50,494 2.14 %9,218,556 52,251 2.25 %8,916,433 52,217 2.33 %
Non-interest-bearing deposits
4,584,612 — — %4,573,009 — — %4,640,557 — — %
Total deposits
13,966,005 50,494 1.43 %13,791,565 52,251 1.50 %13,556,990 52,217 1.53 %
Other interest-bearing liabilities:       
FHLB advances
1,630 17 4.14 %133,380 1,527 4.54 %7,522 85 4.50 %
Other borrowings
114,685 693 2.40 %119,727 694 2.30 %143,097 817 2.27 %
Junior subordinated debentures and subordinated notes
89,178 1,328 5.91 %89,178 1,387 6.17 %169,678 2,781 6.52 %
Total borrowings
205,493 2,038 3.93 %342,285 3,608 4.18 %320,297 3,683 4.57 %
Total funding liabilities
14,171,498 52,532 1.47 %14,133,850 55,859 1.57 %13,877,287 55,900 1.60 %
Other non-interest-bearing liabilities (2)
324,492   296,036 324,447   
Total liabilities
14,495,990   14,429,886 14,201,734   
Shareholders’ equity1,925,529   1,873,496 1,782,297   
Total liabilities and shareholders’ equity$16,421,519   $16,303,382 $15,984,031   
Net interest income/rate spread (tax equivalent)155,941 3.92 %153,442 3.86 %143,799 3.71 %
Net interest margin (tax equivalent)4.03 %3.98 %3.82 %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis(3,493)(3,453)(3,263)
Net interest income and margin, as reported$152,448 3.94 %$149,989 3.89 %$140,536 3.74 %
Additional Key Financial Ratios:
Return on average assets1.24 %1.30 %1.15 %
Adjusted return on average assets (4)
1.29 %1.28 %1.15 %
Return on average equity10.56 %11.33 %10.35 %
Adjusted return on average equity (4)
10.97 %11.18 %10.28 %
Return on average tangible common equity (4)
13.11 %14.17 %13.13 %
Average equity/average assets11.73 %11.49 %11.15 %
Average interest-earning assets/average interest-bearing liabilities160.01 %159.82 %162.05 %
Average interest-earning assets/average funding liabilities108.25 %108.11 %107.86 %
Non-interest income/average assets0.37 %0.50 %0.50 %
Non-interest expense/average assets2.52 %2.48 %2.48 %
Efficiency ratio62.11 %59.76 %61.95 %
Adjusted efficiency ratio (4)
59.87 %58.54 %60.74 %
(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 both the quarters ended December 31, 2025 and September 30, 2025, and $2.2 million for the quarter ended December 31, 2024. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for both the quarters ended December 31, 2025 and September 30, 2025, and $1.0 million for the quarter ended December 31, 2024.
(4)Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 15
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREADYear Ended
Dec 31, 2025Dec 31, 2024
Average BalanceInterest and Dividends
Yield/Cost (3)
Average BalanceInterest and Dividends
Yield/Cost (3)
Interest-earning assets:
Held for sale loans
$29,133 $1,878 6.45 %$27,627 $1,875 6.79 %
Real estate secured loans9,586,917 577,625 6.03 %9,094,276 526,842 5.79 %
Commercial/agricultural loans
1,894,615 123,502 6.52 %1,871,024 127,028 6.79 %
Consumer and other loans
120,351 8,369 6.95 %129,929 8,584 6.61 %
Total loans (1)
11,631,016 711,374 6.12 %11,122,856 664,329 5.97 %
Mortgage-backed securities
2,465,805 61,683 2.50 %2,650,010 66,652 2.52 %
Other securities
879,735 37,454 4.26 %951,515 44,083 4.63 %
Interest-bearing deposits with banks
182,332 6,900 3.78 %65,650 2,573 3.92 %
FHLB stock
15,357 1,134 7.38 %16,658 1,302 7.82 %
Total investment securities3,543,229 107,171 3.02 %3,683,833 114,610 3.11 %
Total interest-earning assets
15,174,245 818,545 5.39 %14,806,689 778,939 5.26 %
Non-interest-earning assets1,026,395  967,122 
Total assets
$16,200,640  $15,773,811 
Deposits:  
Interest-bearing checking accounts
$2,535,133 39,383 1.55 %$2,233,902 33,113 1.48 %
Savings accounts
3,576,179 76,733 2.15 %3,231,631 71,225 2.20 %
Money market accounts
1,487,141 30,314 2.04 %1,632,092 35,206 2.16 %
Certificates of deposit
1,517,967 54,368 3.58 %1,514,726 59,921 3.96 %
Total interest-bearing deposits
9,116,420 200,798 2.20 %8,612,351 199,465 2.32 %
Non-interest-bearing deposits
4,541,445 — — %4,647,100 — — %
Total deposits
13,657,865 200,798 1.47 %13,259,451 199,465 1.50 %
Other interest-bearing liabilities:      
FHLB advances
126,562 5,774 4.56 %159,954 8,941 5.59 %
Other borrowings
122,787 2,756 2.24 %164,613 4,299 2.61 %
Junior subordinated debentures and subordinated notes
128,877 7,708 5.98 %177,361 11,682 6.59 %
Total borrowings
378,226 16,238 4.29 %501,928 24,922 4.97 %
Total funding liabilities
14,036,091 217,036 1.55 %13,761,379 224,387 1.63 %
Other non-interest-bearing liabilities (2)
304,718  308,667 
Total liabilities
14,340,809  14,070,046 
Shareholders’ equity1,859,831  1,703,765 
Total liabilities and shareholders’ equity$16,200,640  $15,773,811 
Net interest income/rate spread (tax equivalent)601,509 3.84 %554,552 3.63 %
Net interest margin (tax equivalent)3.96 %3.75 %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis(13,590)(12,836)
Net interest income and margin, as reported$587,919 3.87 %$541,716 3.66 %
Additional Key Financial Ratios:
Return on average assets1.21 %1.07 %
Adjusted return on average assets (4)
1.22 %1.10 %
Return on average equity10.51 %9.91 %
Adjusted return on average equity (4)
10.63 %10.19 %
Return on average tangible common equity (4)
13.16 %12.73 %
Average equity/average assets11.48 %10.80 %
Average interest-earning assets/average interest-bearing liabilities159.82 %162.46 %
Average interest-earning assets/average funding liabilities108.11 %107.60 %
Non-interest income/average assets0.45 %0.42 %
Non-interest expense/average assets2.52 %2.48 %
Efficiency ratio61.87 %64.33 %
Adjusted efficiency ratio (4)
60.19 %62.29 %
(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 $9.4 million and $8.7 million for the years ended December 31, 2025 and 2024, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $4.2 million and $4.1 million for the years ended December 31, 2025 and 2024, respectively.
(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 - Fourth Quarter 2025 Results
January 21, 2026
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 REVENUEQuarters EndedYear Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Net interest income (GAAP)$152,448 $149,989 $140,536 $587,919 $541,716 
Non-interest income (GAAP)15,225 20,730 20,035 72,814 66,888 
Total revenue (GAAP)167,673 170,719 160,571 660,733 608,604 
Exclude: Net (gain) loss on sale of securities— (377)(275)(374)5,190 
Net change in valuation of financial instruments carried at fair value2,010 (223)(161)1,384 982 
Losses (gains) incurred on building and lease exits169 (1,373)— (285)— 
Adjusted revenue (non-GAAP)$169,852 $168,746 $160,135 $661,458 $614,776 

ADJUSTED EARNINGSQuarters EndedYear Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Net income (GAAP)$51,249 $53,502 $46,391 $195,382 $168,898 
Exclude: Net (gain) loss on sale of securities— (377)(275)(374)5,190 
Net change in valuation of financial instruments carried at fair value2,010 (223)(161)1,384 982 
Building and lease exit costs603 (331)— 2,025 — 
Related net tax (benefit) expense(627)224 105 (728)(1,481)
Total adjusted earnings (non-GAAP)$53,235 $52,795 $46,060 $197,689 $173,589 
Diluted earnings per share (GAAP)$1.49 $1.54 $1.34 $5.64 $4.88 
Diluted adjusted earnings per share (non-GAAP)$1.55 $1.52 $1.33 $5.70 $5.01 
Return on average assets1.24 %1.30 %1.15 %1.21 %1.07 %
Adjusted return on average assets (1)
1.29 %1.28 %1.15 %1.22 %1.10 %
Return on average equity10.56 %11.33 %10.35 %10.51 %9.91 %
Adjusted return on average equity (2)
10.97 %11.18 %10.28 %10.63 %10.19 %
AVERAGE TANGIBLE COMMON EQUITYQuarters EndedYear Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Average common shareholder’s equity$1,925,529 $1,873,496 $1,782,297 $1,859,831 $1,703,765 
Exclude: Average goodwill and other intangible assets, net374,764 375,093 376,461 375,318 377,408 
Average tangible common equity$1,550,765 $1,498,403 $1,405,836 $1,484,513 $1,326,357 
Return on average common equity (3)
13.11 %14.17 %13.13 %13.16 %12.73 %

(1)Adjusted earnings (non-GAAP) divided by average assets.
(2)Adjusted earnings (non-GAAP) divided by average equity.
(3)Net Income (GAAP) divided by average tangible common equity.


BANR - Fourth Quarter 2025 Results
January 21, 2026
Page 17
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIOQuarters EndedYear Ended
Dec 31, 2025Sep 30, 2025Dec 31, 2024Dec 31, 2025Dec 31, 2024
Non-interest expense (GAAP)$104,145 $102,022 $99,478 $408,774 $391,538 
Exclude: CDI amortization(315)(341)(589)(1,567)(2,626)
State/municipal tax expense(1,751)(1,655)(1,518)(6,276)(5,648)
REO operations43 (203)(113)(491)(293)
Building and lease exit costs(434)(1,042)— (2,310)— 
Adjusted non-interest expense (non-GAAP)$101,688 $98,781 $97,258 $398,130 $382,971 
Net interest income (GAAP)$152,448 $149,989 $140,536 $587,919 $541,716 
Non-interest income (GAAP)15,225 20,730 20,035 72,814 66,888 
Total revenue (GAAP)167,673 170,719 160,571 660,733 608,604 
Exclude: Net (gain) loss on sale of securities— (377)(275)(374)5,190 
Net change in valuation of financial instruments carried at fair value2,010 (223)(161)1,384 982 
Losses (gains) incurred on building and lease exits169 (1,373)— (285)— 
Adjusted revenue (non-GAAP)$169,852 $168,746 $160,135 $661,458 $614,776 
Efficiency ratio (GAAP)62.11 %59.76 %61.95 %61.87 %64.33 %
Adjusted efficiency ratio (non-GAAP) (1)
59.87 %58.54 %60.74 %60.19 %62.29 %

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

TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
Dec 31, 2025Sep 30, 2025Dec 31, 2024
Shareholders’ equity (GAAP)$1,946,297 $1,912,892 $1,774,326 
Exclude goodwill and other intangible assets, net374,612 374,927 376,179 
Tangible common shareholders’ equity (non-GAAP)$1,571,685 $1,537,965 $1,398,147 
Total assets (GAAP)$16,354,488 $16,563,081 $16,200,037 
Exclude goodwill and other intangible assets, net374,612 374,927 376,179 
Total tangible assets (non-GAAP)$15,979,876 $16,188,154 $15,823,858 
Common shareholders’ equity to total assets (GAAP)11.90 %11.55 %10.95 %
Tangible common shareholders’ equity to tangible assets (non-GAAP)9.84 %9.50 %8.84 %
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP)$1,946,297 $1,912,892 $1,774,326 
Tangible common shareholders’ equity (non-GAAP)$1,571,685 $1,537,965 $1,398,147 
Common shares outstanding at end of period34,097,856 34,335,297 34,459,832 
Common shareholders’ equity (book value) per share (GAAP)$57.08 $55.71 $51.49 
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)$46.09 $44.79 $40.57