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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 $48.9 Million, or $1.43 Per Diluted Share, for Second Quarter 2026;

Declares Quarterly Cash Dividend of $0.52 Per Share

Walla Walla, WA - July 22, 2026 - Banner Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $48.9 million, or $1.43 per diluted share, for the second quarter of 2026, compared to $54.7 million, or $1.60 per diluted share, for the preceding quarter, and $45.5 million, or $1.31 per diluted share, for the second quarter of 2025. Net interest income was $153.7 million for the second quarter of 2026, compared to $150.2 million in the preceding quarter and $144.4 million for the second quarter a year ago. The increase in net interest income compared to the prior quarter primarily reflects one additional calendar day in the current quarter, net interest margin expansion and growth in average interest-earning assets, partially offset by higher interest expense associated with increased FHLB borrowings. The increase in net interest income compared to the second quarter a year ago primarily reflects lower funding costs and an increase in the average balance of interest-earning assets. Second quarter 2026 results included a $3.8 million provision for credit losses, compared to a $796,000 recapture of provision for credit losses in the preceding quarter and a $4.8 million provision for credit losses in the second quarter of 2025.

Net income was $103.6 million, or $3.03 per diluted share, for the six months ended June 30, 2026, compared to net income of $90.6 million, or $2.61 per diluted share, for the six months ended June 30, 2025. Results for the six months ended June 30, 2026 include a $3.0 million provision for credit losses, a $1.2 million net loss on the sale of securities and a $1.5 million net increase in the fair value adjustments on financial instruments carried at fair value, compared to a $7.9 million provision for credit losses, a $3,000 net loss on the sale of securities and an $403,000 net increase in the fair value adjustments on financial instruments carried at fair value during the same period in 2025.

Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.52 per share payable August 14, 2026, to common shareholders of record on August 4, 2026.

“Banner’s results for the second quarter reflect the continued strength of our super community bank model, which prioritizes deepening client relationships, maintaining a strong funding base, and delivering exceptional service while upholding a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the second quarter of 2026 benefited from robust loan growth. This benefit was offset by increased non-interest expense, which partially reflects investments in new software that we expect will enhance efficiency and support long-term growth. Banner continues to build on a foundation of solid credit quality, backed by a well-funded credit loss reserve and a robust capital position that offers both resilience and flexibility for future growth. At the same time, the strategic investments we have made across the organization are delivering tangible results, further positioning Banner for long-term success. We also continue to benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter-end. For more than 135 years, Banner has upheld 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.”

“In addition, we recently announced our agreement to acquire Pacific Financial Corporation, the holding company for Bank of the Pacific,” Grescovich continued. “Bank of the Pacific is a highly-respected, financially strong community bank with exceptional core deposits. This transaction expands our presence and density in attractive Western Washington and Western Oregon markets while offering Bank of the Pacific customers broader product offerings and technology tools, increased commercial lending limits and an expanded branch delivery system. We look forward to welcoming their employees, clients and shareholders to Banner.”

At June 30, 2026, Banner, on a consolidated basis, had $16.59 billion in assets, $11.83 billion in net loans and $13.79 billion in deposits. Banner operates 135 full-service branch offices, including branches located in eight of the top 20 largest western United States Metropolitan Statistical Areas by population.

BANR - Second Quarter 2026 Results

July 22, 2026

Page 2

Second Quarter 2026 Highlights

•Net interest margin, on a tax equivalent basis, was 4.13% for the current quarter, compared to 4.11% in the preceding quarter and 3.92% in the second quarter a year ago.

•Revenue was $172.0 million for the second quarter of 2026, compared to $169.3 million in the preceding quarter and increased 6% from $162.2 million in the second quarter a year ago.

•Net interest income was $153.7 million in the second quarter of 2026, compared to $150.2 million in the preceding quarter and $144.4 million in the second quarter a year ago.

•Mortgage banking operations revenue was $2.8 million for the second quarter of 2026, compared to $3.2 million in both the preceding quarter and the second quarter a year ago.

•Return on average assets was 1.20% for the second quarter of 2026, compared to 1.37% in the preceding quarter and 1.13% in the second quarter a year ago.

•Net loans receivable increased 2% to $11.83 billion at June 30, 2026, compared to $11.55 billion at March 31, 2026, and increased 3% from $11.53 billion at June 30, 2025.

•Loan originations were $1.26 billion for the second quarter of 2026, compared to $863.2 million in the preceding quarter and $966.6 million in the second quarter a year ago.

•Total deposits were $13.79 billion at June 30, 2026, compared to $13.84 billion at March 31, 2026 and $13.53 billion at June 30, 2025.

•Core deposits represented 89% of total deposits at June 30, 2026.

•Non-performing assets were $60.5 million, or 0.36% of total assets, at June 30, 2026, compared to $51.7 million, or 0.32% of total assets, at March 31, 2026, and $49.8 million, or 0.30% of total assets, at June 30, 2025.

•The allowance for credit losses - loans was $161.8 million, or 1.35% of total loans receivable, as of June 30, 2026, compared to $160.4 million, or 1.37% of total loans receivable, as of March 31, 2026, and $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025.

•Dividends paid to shareholders were $0.52 per share in the quarter ended June 30, 2026.

•Common shareholders’ equity per share increased 1% to $58.83 at June 30, 2026, compared to $58.06 at the preceding quarter end, and increased 9% from $53.95 at June 30, 2025.

•Tangible common shareholders’ equity per share* increased 2% to $47.82 at June 30, 2026, compared to $47.00 at March 31, 2026, and increased 11% from $43.09 at June 30, 2025.

*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.

Significant Recent Initiatives and Events

On April 30, 2026, Banner entered into a definitive merger agreement to acquire Pacific Financial Corporation (“Pacific Financial”), the holding company for Bank of the Pacific, in an all-stock transaction. Under the terms of the agreement, at the effective time of the merger, shareholders of Pacific Financial will receive 0.2633 shares of Banner common stock for each Pacific Financial common share they own. The transaction is expected to close in the third quarter of 2026 and is subject to closing conditions, including Pacific Financial shareholder and regulatory approvals.

Income Statement Review

Net interest income was $153.7 million in the second quarter of 2026, compared to $150.2 million in the preceding quarter and $144.4 million in the second quarter a year ago. Net interest margin, on a tax equivalent basis, increased two basis points to 4.13% for the second quarter of 2026, compared to 4.11% in the preceding quarter, and increased 21 basis points from 3.92% in the second quarter a year ago. The net interest margin for the current quarter benefited from a higher average yield on interest-earning assets and lower borrowing costs.

Interest income was $202.7 million in the second quarter of 2026, compared to $197.8 million in the preceding quarter and $200.3 million in the second quarter of 2025. Average yields on interest-earning assets increased by two basis points to 5.41% for the second quarter of 2026, compared to 5.39% for the preceding quarter, primarily reflecting loan growth and a slight increase in loan yields. Compared to the second quarter a year ago, average yields on interest-earning assets increased by one basis point from 5.40%. Average loan yields increased by two basis points to 6.09% in the second quarter of 2026, compared to 6.07% in the preceding quarter, and decreased from 6.12% in the second quarter a year ago.

Interest expense was $48.9 million in the second quarter of 2026, compared to $47.6 million in the preceding quarter and $55.9 million in the second quarter a year ago. Total deposit costs decreased by two basis points to 1.33% in the second quarter of 2026, compared to 1.35% in the preceding quarter, and decreased by 14 basis points compared to 1.47% in the second quarter a year ago. The decrease in deposit costs in the current quarter compared to both the prior quarter and the same quarter a year ago was primarily due to lower pricing on certificates of deposit and money market accounts as well as an increase in the average balance of non-interest-bearing deposits. The decrease in deposit costs in the current quarter compared to the same quarter a year ago also reflected a decrease in the average rate paid on interest-bearing checking accounts and savings accounts. The average rate paid on borrowings decreased two basis points to 3.88% in the second quarter of 2026 from 3.90% in the preceding quarter and decreased by 59 basis points from 4.47% in the second quarter a year ago. The year-over-year decrease was primarily due to declines in both average interest rates paid and the average balance of higher-costing FHLB advances. The total cost of funding liabilities increased one basis point to 1.39% in the second quarter of 2026, compared to 1.38% in the preceding quarter, and decreased 21 basis points from 1.60% in the second quarter a year ago, primarily reflecting lower deposit and borrowing rates paid.

BANR - Second Quarter 2026 Results

July 22, 2026

Page 3

A $3.8 million provision for credit losses was recorded in the current quarter (comprised of a $1.6 million provision for credit losses - loans and a $2.2 million provision for credit losses - unfunded loan commitments). This compares to a $796,000 recapture of provision for credit losses in the prior quarter (comprised of a $1.3 million provision for credit losses - loans and a $2.1 million recapture of provision for credit losses - unfunded loan commitments) and a $4.8 million provision for credit losses in the second quarter a year ago (comprised of a $4.2 million provision for credit losses - loans and a $588,000 provision for credit losses - unfunded loan commitments). The provision for credit losses recorded in the second quarter of 2026 primarily reflected loan growth, partially offset by improvements in credit quality and changes in portfolio mix.

Total non-interest income was $18.2 million in the second quarter of 2026, compared to $19.2 million in the preceding quarter and $17.8 million in the second quarter a year ago. The decrease from the previous quarter was driven primarily by a $1.8 million unfavorable shift in fair value adjustments on financial instruments. In addition, the current quarter included a slight gain on the sale of securities, compared to net losses of $1.2 million in the preceding quarter, partially offsetting the decrease in non-interest income. Compared to the prior year quarter, the increase in non-interest income was primarily attributable to an increase in deposit fees and other service charges, partially offset by lower mortgage banking revenue. Total non-interest income was $37.4 million for the six months ended June 30, 2026, compared to $36.9 million for the same period a year earlier.

Total non-interest expense was $108.0 million in the second quarter of 2026, compared to $102.6 million in the preceding quarter and $101.3 million in the second quarter of 2025. The increase from the previous quarter reflected a $1.7 million increase in salary and employee benefits, primarily reflecting increased loan commissions and normal salary and wage increases, a $2.0 million increase in information and computer data services, primarily due to increased computer software expenses, including $924,000 of expense related to the write-off of our previous commercial loan origination software, a $1.1 million increase in professional and legal expenses, primarily reflecting increased legal fees, and a $1.3 million increase in advertising and marketing expense, primarily reflecting the timing of direct mail marketing, printed media, and radio and television expenses. In addition, the current quarter includes $238,000 of merger related expenses. These increases were partially offset by a $1.4 million increase in capitalized loan origination costs, reflecting increased loan origination activity, primarily in the construction and land and one- to four-family residential loan categories. The increase compared to the same quarter a year ago primarily reflects increases in salary and employee benefits, information and computer data services expenses, and advertising and marketing expenses, partially offset by a decrease in occupancy and equipment costs. For the six months ended June 30, 2026, total non-interest expense was $210.6 million, compared to $202.6 million for the six months ended June 30, 2025.

Banner’s efficiency ratio was 62.80% for the second quarter of 2026, compared to 60.60% in the preceding quarter and 62.50% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 61.30% for the second quarter of 2026, compared to 59.45% in the preceding quarter and 60.28% 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 $16.59 billion at June 30, 2026, compared to $16.34 billion at March 31, 2026, and $16.44 billion at June 30, 2025. The increase compared to the prior quarter was primarily due to loan growth, partially offset by a reduction in securities. Securities and interest-bearing deposits held at other banks totaled $3.17 billion at June 30, 2026, compared to $3.24 billion at March 31, 2026 and $3.29 billion at June 30, 2025. The average effective duration of the securities portfolio was approximately 6.1 years and 6.6 years at June 30, 2026 and June 30, 2025, respectively.

Total loans receivable increased 2% to $11.99 billion at June 30, 2026, compared to $11.71 billion at March 31, 2026, and increased 3% from $11.69 billion at June 30, 2025. Commercial real estate loans totaled $4.14 billion at June 30, 2026, an increase of 1% compared to $4.11 billion at March 31, 2026, and an increase of 4% from $3.97 billion at June 30, 2025. The increases from both periods reflected a combination of new loan production and the transfer of commercial construction loans to the commercial real estate portfolio upon completion of the construction phase. Commercial business loans totaled $2.58 billion at June 30, 2026, an increase of 6% compared to $2.43 billion at March 31, 2026, and an increase of 5% from $2.47 billion at June 30, 2025. The increases from both periods reflected new loan production. Multifamily real estate loans increased 7% to $855.9 million at June 30, 2026, compared to $798.2 million at March 31, 2026, and decreased 1% from $860.7 million at June 30, 2025. The increase from the prior quarter primarily reflected the transfer of multifamily construction loans to the multifamily real estate portfolio upon completion of the construction phase, while the decrease from the prior year reflected loan payoffs that exceeded transfers from the multifamily construction portfolio. Consumer loans increased 7% to $827.0 million at June 30, 2026, compared to $774.0 million at March 31, 2026, and increased 13% compared to $732.5 million at June 30, 2025. The increases from both periods primarily reflected new loan production and advances on home equity revolving lines of credit.

Loans held for sale were $27.2 million at June 30, 2026, compared to $33.8 million at March 31, 2026, and $37.7 million at June 30, 2025. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $134.6 million, compared to $132.6 million in the preceding quarter, and $104.6 million in the second quarter a year ago. The decrease in loans held for sale at June 30, 2026, compared to both the preceding and prior year quarters, was primarily attributable to higher sales volumes of one- to four-family residential mortgage loans held for sale during the current quarter.

Total deposits were $13.79 billion at June 30, 2026, compared to $13.84 billion at March 31, 2026, and $13.53 billion a year ago. Core deposits decreased to $12.32 billion at June 30, 2026, compared to $12.38 billion at March 31, 2026, and increased compared to $12.05 billion at June 30, 2025. The decrease compared to the preceding quarter primarily reflects a decrease in interest-bearing transaction and savings accounts, as well as money market accounts, due to normal seasonal activity as clients use deposit balances to pay taxes, partially offset by an increase in non-interest-bearing deposits. The increase compared to the prior year quarter reflects increases in interest-bearing transaction and savings accounts. Core deposits remained stable at 89% of total deposits at June 30, 2026, March 31, 2026 and June 30, 2025. Certificates of deposit increased 1% to $1.47 billion at June 30, 2026, compared to $1.46 billion at March 31, 2026, and were flat compared to $1.48 billion a year earlier.

BANR - Second Quarter 2026 Results

July 22, 2026

Page 4

There were $320.0 million of outstanding FHLB advances at June 30, 2026, compared to no outstanding FHLB advances at March 31, 2026, and $565.0 million a year ago. The increase in FHLB advances during the current quarter is due to FHLB advances being temporarily used to fund the second quarter loan growth and seasonal deposit outflows. At June 30, 2026, off-balance sheet liquidity included additional borrowing capacity of $3.45 billion at the FHLB and $1.64 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, 2026, total common shareholders’ equity was $2.00 billion, or 12.05% of total assets, compared to $1.97 billion, or 12.03% of total assets at March 31, 2026, and $1.87 billion, or 11.35% of total assets at June 30, 2025. The increase in total common shareholders’ equity from March 31, 2026, was primarily attributable to a $31.0 million increase in retained earnings resulting from $48.9 million in net income, partially offset by the accrual of $17.9 million in cash dividends during the second quarter of 2026. At June 30, 2026, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.63 billion, or 10.02% of tangible assets, compared to $1.59 billion, or 9.97% of tangible assets, at March 31, 2026, and $1.49 billion, or 9.28% 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, 2026, Banner’s estimated common equity Tier 1 capital ratio was 12.82%, its estimated Tier 1 leverage capital to average assets ratio was 11.79%, and its estimated total capital to risk-weighted assets ratio was 14.67%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

Credit Quality

The allowance for credit losses - loans was $161.8 million, or 1.35% of total loans receivable and 295% of non-performing loans, at June 30, 2026, compared to $160.4 million, or 1.37% of total loans receivable and 353% of non-performing loans, at March 31, 2026, and $160.5 million, or 1.37% of total loans receivable and 373% of non-performing loans, at June 30, 2025. The allowance ratio remained stable compared to both prior periods, reflecting consistent portfolio composition and credit performance. Coverage of non-performing loans remained strong at 295% at June 30, 2026, compared to 353% at March 31, 2026. The year-over-year decline from 373% at June 30, 2025 reflects a moderate increase in non-performing loans over the past year, while the allowance level has remained stable and commensurate with the portfolio’s risk profile. In addition to the allowance for credit losses - loans, the allowance for credit losses - unfunded loan commitments was $15.1 million at June 30, 2026, compared to $12.9 million at March 31, 2026, and $12.8 million at June 30, 2025. Net loan charge-offs remained minimal at $101,000 in the second quarter of 2026, compared to net loan charge-offs of $1.2 million and $1.0 million in the preceding quarter and second quarter a year ago, respectively. Non-performing loans were $54.8 million at June 30, 2026, compared to $45.4 million at March 31, 2026, and $43.0 million at June 30, 2025. Despite the increase in non-performing loans, substandard loans declined to $218.4 million at June 30, 2026, from $235.0 million at March 31, 2026. Total non-performing assets were $60.5 million, or 0.36% of total assets, at June 30, 2026, compared to $51.7 million, or 0.32% of total assets, at March 31, 2026, and $49.8 million, or 0.30% of total assets, at June 30, 2025.

Conference Call

Banner will host a conference call on Thursday, July 23, 2026, 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 (800) 715-9871 to participate in the call. A replay of the call will be available at www.bannerbank.com.

About the Company

Banner Corporation is a $16.59 billion bank holding company operating a commercial bank primarily in Washington, Oregon, California and Idaho 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 2026 Results

July 22, 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 pending and 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.

Further, statements about the potential effects of Banner’s proposed merger with Pacific Financial on Banner’s business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond Banner’s control, including, but are not limited to the risk that: (1) the business of Pacific Financial may not be integrated with Banner’s business successfully or such integration may be more difficult, time-consuming or costly than expected; (2) any of the anticipated benefits of the merger may not be realized or may not be realized within the expected time period; (3) customer and employee relationships and business operations may be disrupted by the merger or the announcement of the merger, and the parties may be challenged in retaining key relationships both during the pendency of the merger and following the completion of the merger if that occurs; (4) the parties may not meet expectations regarding the timing of the merger; (5) required regulatory approvals or the approval of Pacific Financial shareholders may not be obtained or such approvals may be more difficult, time-consuming or costly than expected; (6) there may be challenges in satisfying the other conditions to completion of the merger or the merger may fail to close for any other reason; (7) management’s attention may be diverted from ongoing business operations and opportunities due to the merger; (8) there may be potential negative impacts caused by the dilution resulting from Banner’s issuance of shares of Banner Common Stock in connection with the merger; and (9) other factors detailed in Banner’s filings with the SEC.

BANR - Second Quarter 2026 Results

July 22, 2026

Page 6

Additional Information About the Pacific Financial Corporation Merger and Where to Find It

This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval with respect to the proposed transaction.

In connection with the proposed merger, a registration statement on Form S-4 was filed with the SEC and declared effective on June 16, 2026. The proxy statement of Pacific Financial and the prospectus of Banner included therein has been mailed to shareholders of Pacific Financial in connection with their votes on the merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS.

The proxy statement/prospectus and other documents relating to the merger filed by Banner can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge through Banner’s investor relations website at https://investor.bannerbank.com by clicking on “SEC Filings” under the “Financials” tab. Alternatively, these documents, when available, can be obtained free of charge from Banner upon written request to Banner Corporation, Attn: Investor Relations, 10 South First Avenue, Walla Walla, Washington 99362 or by calling (509) 527-3636. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the proxy statement/prospectus.

Participants in the Solicitation

Banner, Pacific Financial, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Pacific Financial in connection with the proposed Merger under SEC rules. Information about the directors and executive officers of Banner and Pacific Financial is included in the proxy statement/prospectus for the proposed transaction filed with the SEC. These documents may be obtained free of charge in the manner described above under “Additional Information About the Pacific Financial Corporation Merger and Where to Find It.”

Information about such directors and executive officers of Banner and their direct or indirect interests, by security holdings or otherwise, can be found in Banner’s proxy statement in connection with its 2026 annual meeting of shareholders, as filed with the SEC on April 6, 2026, and other documents subsequently filed by Banner with the SEC. To the extent holdings of common stock by its directors or executive officers have changed since the amounts set forth in Banner’s proxy statement for its 2026 annual meeting of shareholders, such changes have been or will be reflected in filings with the SEC on Forms 3, 4, and 5. These documents can be obtained free of charge in the manner described above under “Additional Information About the Pacific Financial Corporation Merger and Where to Find It.”

BANR - Second Quarter 2026 Results

July 22, 2026

Page 7


RESULTS OF OPERATIONS	Quarters Ended						Six Months Ended
(in thousands except shares and per share data)	Jun 30, 2026		Mar 31, 2026		Jun 30, 2025		Jun 30, 2026		Jun 30, 2025
INTEREST INCOME:
Loans receivable	$	178,389	$	173,703	$	175,373	$	352,092	$	344,050
Mortgage-backed securities	14,053		14,316		15,416		28,369		31,160
Securities and cash equivalents	10,244		9,799		9,470		20,043		18,917
Total interest income	202,686		197,818		200,259		400,504		394,127
INTEREST EXPENSE:
Deposits	45,554		45,678		49,316		91,232		98,053
Federal Home Loan Bank (FHLB) advances	1,426		40		3,370		1,466		4,230
Other borrowings	732		697		675		1,429		1,369
Subordinated debt	1,234		1,234		2,499		2,468		4,993
Total interest expense	48,946		47,649		55,860		96,595		108,645
Net interest income	153,740		150,169		144,399		303,909		285,482
PROVISION (RECAPTURE) FOR CREDIT LOSSES	3,818		(796)		4,795		3,022		7,934
Net interest income after provision (recapture) for credit losses	149,922		150,965		139,604		300,887		277,548
NON-INTEREST INCOME:
Deposit fees and other service charges	11,728		11,391		10,835		23,119		21,604
Mortgage banking operations	2,792		3,212		3,226		6,004		6,329
Bank-owned life insurance	2,471		2,312		2,384		4,783		4,959
Miscellaneous	1,380		1,826		1,221		3,206		3,567
	18,371		18,741		17,666		37,112		36,459
Net gain (loss) on sale of securities	8		(1,242)		(3)		(1,234)		(3)

Net change in valuation of financial instruments carried at fair value	(157)		1,662		88		1,505		403


Total non-interest income	18,222		19,161		17,751		37,383		36,859
NON-INTEREST EXPENSE:
Salary and employee benefits	69,388		67,732		65,486		137,120		130,343
Less capitalized loan origination costs	(5,283)		(3,886)		(4,924)		(9,169)		(8,254)
Occupancy and equipment	10,936		10,697		12,256		21,633		24,353
Information and computer data services	10,322		8,313		8,199		18,635		15,827
Payment and card processing services	6,218		6,041		5,899		12,259		11,649
Professional and legal expenses	2,719		1,613		2,271		4,332		4,701
Advertising and marketing	1,982		673		1,087		2,655		1,677
Deposit insurance	2,819		2,717		2,800		5,536		5,597
State and municipal business and use taxes	1,773		1,820		1,416		3,593		2,870
Real estate operations, net	165		109		392		274		331
Amortization of core deposit intangibles	256		256		455		512		911

Miscellaneous	6,695		6,523		6,011		13,218		12,602



Total non-interest expense	107,990		102,608		101,348		210,598		202,607
Income before provision for income taxes	60,154		67,518		56,007		127,672		111,800
PROVISION FOR INCOME TAXES	11,268		12,802		10,511		24,070		21,169
NET INCOME	$	48,886	$	54,716	$	45,496	$	103,602	$	90,631





Earnings per common share:
Basic	$	1.44	$	1.61	$	1.31	$	3.04	$	2.62
Diluted	$	1.43	$	1.60	$	1.31	$	3.03	$	2.61
Cumulative dividends declared per common share	$	0.52	$	0.50	$	0.48	$	1.02	$	0.96
Weighted average number of common shares outstanding:
Basic	34,012,611		34,039,234		34,627,433		34,025,849		34,568,948
Diluted	34,129,173		34,254,587		34,738,948		34,197,096		34,761,044

BANR - Second Quarter 2026 Results

July 22, 2026

Page 8


FINANCIAL CONDITION													Percentage Change
(in thousands except shares and per share data)	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Jun 30, 2025			Prior Qtr		Prior Yr Qtr

ASSETS
Cash and due from banks	$	215,508		$	180,158		$	182,772		$	239,339		20	%	(10)	%
Interest-bearing deposits	219,944			259,081			239,868			244,009			(15)	%	(10)	%
Total cash and cash equivalents	435,452			439,239			422,640			483,348			(1)	%	(10)	%

Securities - available for sale, amortized cost $2,273,608, $2,294,225, $2,271,471 and $2,372,331, respectively	2,015,891			2,035,021			2,016,261			2,064,581			(1)	%	(2)	%
Securities - held to maturity, fair value $787,987, $791,763, $814,668 and $801,838, respectively	929,309			943,688			961,196			981,312			(2)	%	(5)	%
Total securities	2,945,200			2,978,709			2,977,457			3,045,893			(1)	%	(3)	%

FHLB stock	24,209			9,809			16,476			35,151			147	%	(31)	%

Loans held for sale	27,160			33,778			42,902			37,651			(20)	%	(28)	%
Loans receivable	11,994,410			11,707,626			11,721,687			11,690,373			2	%	3	%
Allowance for credit losses – loans	(161,849)			(160,352)			(160,276)			(160,501)			1	%	1	%
Net loans receivable	11,832,561			11,547,274			11,561,411			11,529,872			2	%	3	%
Accrued interest receivable	65,016			63,736			60,525			64,729			2	%	—	%
Property and equipment, net	108,247			108,303			111,522			117,175			—	%	(8)	%
Goodwill	373,121			373,121			373,121			373,121			—	%	—	%
Other intangibles, net	979			1,235			1,491			2,147			(21)	%	(54)	%
Bank-owned life insurance	324,164			321,660			319,347			316,365			1	%	2	%
Operating lease right-of-use assets	29,534			31,056			32,736			38,754			(5)	%	(24)	%
Other assets	427,904			436,352			434,860			392,963			(2)	%	9	%
Total assets	$	16,593,547		$	16,344,272		$	16,354,488		$	16,437,169		2	%	1	%
LIABILITIES
Deposits:
Non-interest-bearing	$	4,542,942		$	4,532,639		$	4,489,839		$	4,504,491		—	%	1	%
Interest-bearing transaction and savings accounts	7,773,630			7,842,911			7,721,003			7,545,028			(1)	%	3	%
Interest-bearing certificates	1,473,021			1,464,814			1,532,304			1,477,772			1	%	—	%
Total deposits	13,789,593			13,840,364			13,743,146			13,527,291			—	%	2	%
Advances from FHLB	320,000			—			150,000			565,000			—	%	(43)	%
Other borrowings	114,497			115,723			107,715			117,112			(1)	%	(2)	%

Junior subordinated debentures at fair value	79,652			79,472			79,151			73,366			—	%	9	%
Operating lease liabilities	32,108			33,794			35,755			41,696			(5)	%	(23)	%
Accrued expenses and other liabilities	210,134			261,295			245,266			200,194			(20)	%	5	%
Deferred compensation	48,300			46,990			47,158			46,846			3	%	3	%
Total liabilities	14,594,284			14,377,638			14,408,191			14,571,505			2	%	—	%
SHAREHOLDERS’ EQUITY
Common stock	1,268,527			1,268,298			1,282,505			1,309,004			—	%	(3)	%
Retained earnings	940,210			909,222			871,803			801,082			3	%	17	%
Accumulated other comprehensive loss	(209,474)			(210,886)			(208,011)			(244,422)			(1)	%	(14)	%
Total shareholders’ equity	1,999,263			1,966,634			1,946,297			1,865,664			2	%	7	%
Total liabilities and shareholders’ equity	$	16,593,547		$	16,344,272		$	16,354,488		$	16,437,169		2	%	1	%
Common Shares Issued:


Shares outstanding at end of period	33,984,909			33,875,098			34,097,856			34,583,994
Common shareholders’ equity per share (1)	$	58.83		$	58.06		$	57.08		$	53.95
Common shareholders’ tangible equity per share (1) (2)	$	47.82		$	47.00		$	46.09		$	43.09
Common shareholders’ equity to total assets	12.05		%	12.03		%	11.90		%	11.35		%
Common shareholders’ tangible equity to tangible assets (2)	10.02		%	9.97		%	9.84		%	9.28		%
Consolidated Tier 1 leverage capital ratio	11.79		%	11.68		%	11.41		%	11.29		%



(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 2026 Results

July 22, 2026

Page 9


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

LOANS													Percentage Change
	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Jun 30, 2025			Prior Qtr		Prior Yr Qtr
Commercial real estate (CRE):
Owner-occupied	$	1,229,993		$	1,176,035		$	1,138,298		$	1,125,249		5	%	9	%
Investment properties	1,744,127			1,719,220			1,701,413			1,625,001			1	%	7	%
Small balance CRE	1,166,516			1,218,388			1,212,357			1,223,477			(4)	%	(5)	%
Multifamily real estate	855,862			798,230			850,789			860,700			7	%	(1)	%
Construction, land and land development:
Commercial construction	181,843			174,761			156,021			159,222			4	%	14	%
Multifamily construction	503,058			502,166			514,330			568,058			—	%	(11)	%
One- to four-family construction	631,183			617,233			607,447			551,806			2	%	14	%
Land and land development	378,172			400,959			433,678			417,474			(6)	%	(9)	%
Commercial business:
Commercial business	1,286,818			1,231,154			1,225,108			1,318,483			5	%	(2)	%
Small business scored	1,295,861			1,199,913			1,187,360			1,152,531			8	%	12	%
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland	337,487			332,440			353,152			345,742			2	%	(2)	%
One- to four-family residential	1,556,493			1,563,088			1,573,191			1,610,133			—	%	(3)	%
Consumer:
Consumer—home equity revolving lines of credit	744,546			682,692			679,489			639,757			9	%	16	%
Consumer—other	82,451			91,347			89,054			92,740			(10)	%	(11)	%
Total loans receivable	$	11,994,410		$	11,707,626		$	11,721,687		$	11,690,373		2	%	3	%

Loans 30 - 89 days past due and on accrual	$	17,686		$	30,177		$	26,767		$	10,786
Total delinquent loans (including loans on non-accrual), net	$	61,333		$	65,632		$	63,093		$	47,764
Total delinquent loans / Total loans receivable	0.51		%	0.56		%	0.54		%	0.41		%


LOANS BY GEOGRAPHIC LOCATION											Percentage Change
	Jun 30, 2026				Mar 31, 2026		Dec 31, 2025		Jun 30, 2025		Prior Qtr		Prior Yr Qtr
	Amount		Percentage		Amount		Amount		Amount
Washington	$	5,359,130	45	%	$	5,313,022	$	5,371,200	$	5,438,285	1	%	(1)	%
California	3,275,124		27	%	3,159,842		3,105,405		3,010,678		4	%	9	%
Oregon	2,210,617		18	%	2,166,750		2,159,404		2,141,185		2	%	3	%
Idaho	732,830		6	%	690,608		667,343		671,217		6	%	9	%
Utah	78,216		1	%	77,046		82,594		70,474		2	%	11	%
Other	338,493		3	%	300,358		335,741		358,534		13	%	(6)	%
Total loans receivable	$	11,994,410	100	%	$	11,707,626	$	11,721,687	$	11,690,373	2	%	3	%

BANR - Second Quarter 2026 Results

July 22, 2026

Page 10

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)


LOAN ORIGINATIONS	Quarters Ended
	Jun 30, 2026		Mar 31, 2026		Jun 30, 2025
Commercial real estate	$	163,031	$	220,193	$	216,189
Multifamily real estate	215		3,869		13,065
Construction and land	561,290		323,941		411,210

Commercial business	312,028		168,324		203,656
Agricultural business	9,032		22,562		14,414
One-to four-family residential	37,998		13,416		5,491
Consumer	172,152		110,913		102,600
Total loan originations (excluding loans held for sale)	$	1,255,746	$	863,218	$	966,625

BANR - Second Quarter 2026 Results

July 22, 2026

Page 11


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS	Quarters Ended
	Jun 30, 2026			Mar 31, 2026			Jun 30, 2025
Balance, beginning of period	$	160,352		$	160,276		$	157,323
Provision for credit losses – loans	1,598			1,292			4,201
Recoveries of loans previously charged off:
Commercial real estate	12			11			53

Construction and land	5			4			—
One- to four-family real estate	12			13			58
Commercial business	171			81			361
Agricultural business, including secured by farmland	213			4			1
Consumer	63			140			168
	476			253			641
Loans charged off:




Commercial business	(293)			(863)			(892)
Agricultural business, including secured by farmland	(4)			—			(362)
Consumer	(280)			(606)			(410)
	(577)			(1,469)			(1,664)
Net charge-offs	(101)			(1,216)			(1,023)
Balance, end of period	$	161,849		$	160,352		$	160,501
Net charge-offs / average loans receivable	(0.001)		%	(0.010)		%	(0.009)		%


ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Jun 30, 2025

Commercial real estate	$	42,167		$	41,788		$	41,599		$	41,036
Multifamily real estate	9,859			9,201			9,805			9,918
Construction and land	32,124			34,589			35,508			34,124
One- to four-family real estate	19,478			19,640			19,552			20,917
Commercial business	41,114			39,452			37,785			38,591
Agricultural business, including secured by farmland	5,859			4,930			5,567			6,216
Consumer	11,248			10,752			10,460			9,699
Total allowance for credit losses – loans	$	161,849		$	160,352		$	160,276		$	160,501
Allowance for credit losses - loans / Total loans receivable	1.35		%	1.37		%	1.37		%	1.37		%
Allowance for credit losses - loans / Non-performing loans	295		%	353		%	351		%	373		%


CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS	Quarters Ended
	Jun 30, 2026		Mar 31, 2026		Jun 30, 2025
Balance, beginning of period	$	12,903	$	14,985	$	12,162

Provision (recapture) for credit losses - unfunded loan commitments	2,222		(2,082)		588

Balance, end of period	$	15,125	$	12,903	$	12,750

BANR - Second Quarter 2026 Results

July 22, 2026

Page 12


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

NON-PERFORMING ASSETS	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Jun 30, 2025
Loans on non-accrual status:
Secured by real estate:
Commercial	$	2,132		$	2,027		$	525		$	10

Construction and land	12,648			4,321			5,175			4,369
One- to four-family	23,398			20,945			19,855			15,480
Commercial business	6,968			6,988			6,751			6,647
Agricultural business, including secured by farmland	2,967			5,511			4,609			8,690
Consumer	4,784			4,214			4,610			4,802
	52,897			44,006			41,525			39,998
Loans more than 90 days delinquent, still on accrual:
Secured by real estate:
Commercial	234			—			—			—

Construction and land	—			—			1,268			—
One- to four-family	1,427			636			2,698			2,896


Consumer	265			795			148			80
	1,926			1,431			4,114			2,976
Total non-performing loans	54,823			45,437			45,639			42,974

REO	5,720			6,248			5,578			6,801
Other repossessed assets	—			—			18			—
Total non-performing assets	$	60,543		$	51,685		$	51,235		$	49,775
Total non-performing assets to total assets	0.36		%	0.32		%	0.31		%	0.30		%


LOANS BY CREDIT RISK RATING	Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Jun 30, 2025
Pass	$	11,754,475	$	11,416,687	$	11,446,550	$	11,432,456
Special Mention	21,509		55,981		82,060		68,372
Substandard	218,426		234,958		193,077		189,545

Total	$	11,994,410	$	11,707,626	$	11,721,687	$	11,690,373

BANR - Second Quarter 2026 Results

July 22, 2026

Page 13


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

DEPOSIT COMPOSITION									Percentage Change
	Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Jun 30, 2025		Prior Qtr		Prior Yr Qtr
Non-interest-bearing	$	4,542,942	$	4,532,639	$	4,489,839	$	4,504,491	—	%	1	%
Interest-bearing checking	2,623,149		2,628,731		2,609,080		2,534,900		—	%	3	%
Regular savings accounts	3,853,612		3,859,530		3,723,922		3,538,372		—	%	9	%
Money market accounts	1,296,869		1,354,650		1,388,001		1,471,756		(4)	%	(12)	%
Total interest-bearing transaction and savings accounts	7,773,630		7,842,911		7,721,003		7,545,028		(1)	%	3	%
Total core deposits	12,316,572		12,375,550		12,210,842		12,049,519		—	%	2	%
Interest-bearing certificates	1,473,021		1,464,814		1,532,304		1,477,772		1	%	—	%
Total deposits	$	13,789,593	$	13,840,364	$	13,743,146	$	13,527,291	—	%	2	%


GEOGRAPHIC CONCENTRATION OF DEPOSITS	Jun 30, 2026				Mar 31, 2026		Dec 31, 2025		Jun 30, 2025		Percentage Change
	Amount		Percentage		Amount		Amount		Amount		Prior Qtr		Prior Yr Qtr
Washington	$	7,268,041	53	%	$	7,429,406	$	7,500,215	$	7,334,391	(2)	%	(1)	%
Oregon	3,142,625		23	%	3,125,040		3,035,104		3,029,712		1	%	4	%
California	2,631,688		19	%	2,558,466		2,483,948		2,486,514		3	%	6	%
Idaho	747,239		5	%	727,452		723,879		676,674		3	%	10	%

Total deposits	$	13,789,593	100	%	$	13,840,364	$	13,743,146	$	13,527,291	—	%	2	%


INCLUDED IN TOTAL DEPOSITS	Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Jun 30, 2025
Public non-interest-bearing accounts	$	171,112	$	146,846	$	138,860	$	151,484
Public interest-bearing transaction & savings accounts	242,061		237,776		234,669		250,350
Public interest-bearing certificates	34,794		36,125		34,431		21,272
Total public deposits	$	447,967	$	420,747	$	407,960	$	423,106
Collateralized public deposits	$	348,318	$	325,675	$	312,310	$	329,416
Total brokered deposits	$	—	$	—	$	50,002	$	49,977

AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT	Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Jun 30, 2025
Number of deposit accounts	441,808		444,250		445,989		451,185
Average account balance per account	$	32	$	32	$	31	$	30

BANR - Second Quarter 2026 Results

July 22, 2026

Page 14


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF JUNE 30, 2026	Actual				Minimum to be categorized as "Adequately Capitalized"				Minimum to be categorized as "Well Capitalized"
	Amount		Ratio		Amount		Ratio		Amount		Ratio

Banner Corporation-consolidated:
Total capital to risk-weighted assets	$	2,092,299	14.67	%	$	1,140,941	8.00	%	$	1,426,177	10.00	%
Tier 1 capital to risk-weighted assets	1,915,042		13.43	%	855,706		6.00	%	855,706		6.00	%
Tier 1 leverage capital to average assets	1,915,042		11.79	%	649,595		4.00	%	n/a		n/a
Common equity tier 1 capital to risk-weighted assets	1,828,542		12.82	%	641,780		4.50	%	n/a		n/a
Banner Bank:
Total capital to risk-weighted assets	1,987,693		13.94	%	1,140,409		8.00	%	1,425,511		10.00	%
Tier 1 capital to risk-weighted assets	1,810,436		12.70	%	855,307		6.00	%	1,140,409		8.00	%
Tier 1 leverage capital to average assets	1,810,436		11.15	%	649,364		4.00	%	811,705		5.00	%
Common equity tier 1 capital to risk-weighted assets	1,810,436		12.70	%	641,480		4.50	%	926,582		6.50	%

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

BANR - Second Quarter 2026 Results

July 22, 2026

Page 15


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Quarters Ended
	Jun 30, 2026						Mar 31, 2026						Jun 30, 2025
	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	$	33,242	$	509	6.14	%	$	26,051	$	381	5.93	%	$	29,936	$	503	6.74	%
Real estate secured loans	9,875,493		148,303		6.02	%	9,754,431		144,369		6.00	%	9,565,357		143,909		6.03	%
Commercial/agricultural loans	1,881,938		29,866		6.37	%	1,853,248		29,153		6.38	%	1,924,092		31,196		6.50	%
Consumer and other loans	117,727		2,015		6.87	%	116,147		2,040		7.12	%	121,142		2,087		6.91	%
Total loans (1)	11,908,400		180,693		6.09	%	11,749,877		175,943		6.07	%	11,640,527		177,695		6.12	%
Mortgage-backed securities	2,275,561		14,269		2.52	%	2,326,123		14,509		2.53	%	2,496,972		15,576		2.50	%
Other securities	938,205		9,915		4.24	%	878,650		9,040		4.17	%	893,062		9,561		4.29	%

Interest-bearing deposits with banks	139,672		1,102		3.16	%	184,204		1,518		3.34	%	75,539		577		3.06	%
FHLB stock	16,342		150		3.68	%	9,912		148		6.06	%	23,077		222		3.86	%
Total investment securities	3,369,780		25,436		3.03	%	3,398,889		25,215		3.01	%	3,488,650		25,936		2.98	%
Total interest-earning assets	15,278,180		206,129		5.41	%	15,148,766		201,158		5.39	%	15,129,177		203,631		5.40	%
Non-interest-earning assets	1,082,054						1,106,533						994,003
Total assets	$	16,360,234					$	16,255,299					$	16,123,180
Deposits:
Interest-bearing checking accounts	$	2,606,252	9,433		1.45	%	$	2,631,917	9,273		1.43	%	$	2,465,015	9,462		1.54	%
Savings accounts	3,830,346		19,009		1.99	%	3,792,427		18,388		1.97	%	3,493,965		18,837		2.16	%
Money market accounts	1,314,496		5,790		1.77	%	1,387,870		6,151		1.80	%	1,492,229		7,729		2.08	%
Certificates of deposit	1,465,885		11,322		3.10	%	1,481,349		11,866		3.25	%	1,489,611		13,288		3.58	%
Total interest-bearing deposits	9,216,979		45,554		1.98	%	9,293,563		45,678		1.99	%	8,940,820		49,316		2.21	%
Non-interest-bearing deposits	4,523,594		—		—	%	4,470,629		—		—	%	4,480,579		—		—	%
Total deposits	13,740,573		45,554		1.33	%	13,764,192		45,678		1.35	%	13,421,399		49,316		1.47	%
Other interest-bearing liabilities:
FHLB advances	145,176		1,426		3.94	%	4,089		40		3.97	%	296,671		3,370		4.56	%
Other borrowings	116,146		732		2.53	%	111,569		697		2.53	%	122,227		675		2.22	%
Junior subordinated debentures and subordinated notes	89,178		1,234		5.55	%	89,178		1,234		5.61	%	168,793		2,499		5.94	%
Total borrowings	350,500		3,392		3.88	%	204,836		1,971		3.90	%	587,691		6,544		4.47	%
Total funding liabilities	14,091,073		48,946		1.39	%	13,969,028		47,649		1.38	%	14,009,090		55,860		1.60	%
Other non-interest-bearing liabilities (2)	290,601						320,808						274,407
Total liabilities	14,381,674						14,289,836						14,283,497
Shareholders’ equity	1,978,560						1,965,463						1,839,683
Total liabilities and shareholders’ equity	$	16,360,234					$	16,255,299					$	16,123,180
Net interest income/rate spread (tax equivalent)			157,183		4.02	%			153,509		4.01	%			147,771		3.80	%
Net interest margin (tax equivalent)					4.13	%					4.11	%					3.92	%
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis			(3,443)						(3,340)						(3,372)
Net interest income and margin, as reported			$	153,740	4.04	%			$	150,169	4.02	%			$	144,399	3.83	%
Additional Key Financial Ratios:
Return on average assets					1.20	%					1.37	%					1.13	%
Adjusted return on average assets (4)					1.21	%					1.36	%					1.16	%
Return on average equity					9.91	%					11.29	%					9.92	%
Adjusted return on average equity (4)					9.98	%					11.23	%					10.20	%
Return on average tangible common equity (4)					12.27	%					14.00	%					12.56	%
Average equity/average assets					12.09	%					12.09	%					11.41	%
Average interest-earning assets/average interest-bearing liabilities					159.69	%					159.49	%					158.78	%
Average interest-earning assets/average funding liabilities					108.42	%					108.45	%					108.00	%
Non-interest income/average assets					0.45	%					0.48	%					0.44	%
Non-interest expense/average assets					2.65	%					2.56	%					2.52	%
Efficiency ratio					62.80	%					60.60	%					62.50	%
Adjusted efficiency ratio (4)					61.30	%					59.45	%					60.28	%

(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, which Banner believes provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice. The tax equivalent yield adjustment to interest earned on loans was $2.3 million, $2.2 million and $2.3 million for the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025.

(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 2026 Results

July 22, 2026

Page 16


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Six Months Ended
	Jun 30, 2026						Jun 30, 2025
	Average Balance		Interest and Dividends		Yield/Cost (3)		Average Balance		Interest and Dividends		Yield/Cost (3)
Interest-earning assets:
Held for sale loans	$	29,666	$	890	6.05	%	$	26,217	$	860	6.61	%
Real estate secured loans	9,815,296		292,672		6.01	%	9,466,335		281,633		6.00	%
Commercial/agricultural loans	1,867,672		59,019		6.37	%	1,915,699		61,948		6.52	%
Consumer and other loans	116,942		4,055		6.99	%	121,316		4,179		6.95	%
Total loans (1)	11,829,576		356,636		6.08	%	11,529,567		348,620		6.10	%
Mortgage-backed securities	2,300,703		28,778		2.52	%	2,519,851		31,471		2.52	%
Other securities	908,592		18,955		4.21	%	897,870		19,248		4.32	%

Interest-bearing deposits with banks	161,815		2,620		3.27	%	70,675		1,061		3.03	%
FHLB stock	13,145		298		4.57	%	17,969		371		4.16	%
Total investment securities	3,384,255		50,651		3.02	%	3,506,365		52,151		3.00	%
Total interest-earning assets	15,213,831		407,287		5.40	%	15,035,932		400,771		5.38	%
Non-interest-earning assets	1,094,225						1,000,216
Total assets	$	16,308,056					$	16,036,148
Deposits:
Interest-bearing checking accounts	$	2,619,014	18,706		1.44	%	$	2,423,292	17,999		1.50	%
Savings accounts	3,811,491		37,397		1.98	%	3,472,556		36,940		2.15	%
Money market accounts	1,350,980		11,941		1.78	%	1,523,571		15,589		2.06	%
Certificates of deposit	1,473,574		23,188		3.17	%	1,510,404		27,525		3.67	%
Total interest-bearing deposits	9,255,059		91,232		1.99	%	8,929,823		98,053		2.21	%
Non-interest-bearing deposits	4,497,258		—		—	%	4,503,461		—		—	%
Total deposits	13,752,317		91,232		1.34	%	13,433,284		98,053		1.47	%
Other interest-bearing liabilities:
FHLB advances	75,022		1,466		3.94	%	186,597		4,230		4.57	%
Other borrowings	113,870		1,429		2.53	%	128,459		1,369		2.15	%
Junior subordinated debentures and subordinated notes	89,178		2,468		5.58	%	169,233		4,993		5.95	%
Total borrowings	278,070		5,363		3.89	%	484,289		10,592		4.41	%
Total funding liabilities	14,030,387		96,595		1.39	%	13,917,573		108,645		1.57	%
Other non-interest-bearing liabilities (2)	305,621						299,082
Total liabilities	14,336,008						14,216,655
Shareholders’ equity	1,972,048						1,819,493
Total liabilities and shareholders’ equity	$	16,308,056					$	16,036,148
Net interest income/rate spread (tax equivalent)			310,692		4.01	%			292,126		3.81	%
Net interest margin (tax equivalent)					4.12	%					3.92	%
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis			(6,783)						(6,644)
Net interest income and margin, as reported			$	303,909	4.03	%			$	285,482	3.83	%
Additional Key Financial Ratios:
Return on average assets					1.28	%					1.14	%
Adjusted return on average assets (4)					1.28	%					1.15	%
Return on average equity					10.59	%					10.04	%
Adjusted return on average equity (4)					10.60	%					10.16	%
Return on average tangible common equity (4)					13.13	%					12.76	%
Average equity/average assets					12.09	%					11.35	%
Average interest-earning assets/average interest-bearing liabilities					159.59	%					159.72	%
Average interest-earning assets/average funding liabilities					108.43	%					108.04	%
Non-interest income/average assets					0.46	%					0.46	%
Non-interest expense/average assets					2.60	%					2.55	%
Efficiency ratio					61.71	%					62.85	%
Adjusted efficiency ratio (4)					60.38	%					61.22	%

(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 $4.5 million and $4.6 million for the six months ended June 30, 2026 and 2025, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.2 million and $2.1 million for the six months ended June 30, 2026 and 2025, respectively.

BANR - Second Quarter 2026 Results

July 22, 2026

Page 17


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, the ratio of tangible common equity to tangible assets and the return on average tangible common equity, 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, 2026		Mar 31, 2026		Jun 30, 2025		Jun 30, 2026		Jun 30, 2025
Net interest income (GAAP)	$	153,740	$	150,169	$	144,399	$	303,909	$	285,482
Non-interest income (GAAP)	18,222		19,161		17,751		37,383		36,859
Total revenue (GAAP)	171,962		169,330		162,150		341,292		322,341
Exclude: Net (gain) loss on sale of securities	(8)		1,242		3		1,234		3
Net change in valuation of financial instruments carried at fair value	157		(1,662)		(88)		(1,505)		(403)


Losses incurred on building and lease exits	—		—		919		—		919
Adjusted revenue (non-GAAP)	$	172,111	$	168,910	$	162,984	$	341,021	$	322,860


ADJUSTED EARNINGS	Quarters Ended									Six Months Ended
	Jun 30, 2026			Mar 31, 2026			Jun 30, 2025			Jun 30, 2026			Jun 30, 2025
Net income (GAAP)	$	48,886		$	54,716		$	45,496		$	103,602		$	90,631
Exclude: Net (gain) loss on sale of securities	(8)			1,242			3			1,234			3
Net change in valuation of financial instruments carried at fair value	157			(1,662)			(88)			(1,505)			(403)
Merger and acquisition-related expenses	238			—			—			238			—

Building and lease exit costs	47			9			1,753			56			1,753
Related net tax (benefit) expense	(104)			99			(401)			(5)			(325)
Total adjusted earnings (non-GAAP)	$	49,216		$	54,404		$	46,763		$	103,620		$	91,659

Diluted earnings per share (GAAP)	$	1.43		$	1.60		$	1.31		$	3.03		$	2.61
Diluted adjusted earnings per share (non-GAAP)	$	1.44		$	1.59		$	1.35		$	3.03		$	2.64
Return on average assets	1.20		%	1.37		%	1.13		%	1.28		%	1.14		%
Adjusted return on average assets (1)	1.21		%	1.36		%	1.16		%	1.28		%	1.15		%
Return on average equity	9.91		%	11.29		%	9.92		%	10.59		%	10.04		%
Adjusted return on average equity (2)	9.98		%	11.23		%	10.20		%	10.60		%	10.16		%

AVERAGE TANGIBLE COMMON EQUITY	Quarters Ended									Six Months Ended
	Jun 30, 2026			Mar 31, 2026			Jun 30, 2025			Jun 30, 2026			Jun 30, 2025
Net Income (GAAP)	$	48,886		$	54,716		$	45,496		$	103,602		$	90,631
Exclude: Amortization of intangibles, net of tax	$	202		$	202		$	360		$	404		$	720
Tangible net income available to common shareholders (non-GAAP)	$	49,088		$	54,918		$	45,856		$	104,006		$	91,351

Average common shareholder’s equity	$	1,978,560		$	1,965,463		$	1,839,683		$	1,972,048		$	1,819,493
Exclude: Average goodwill and other intangible assets, net	374,225			374,477			375,486			374,350			375,713
Average tangible common equity	$	1,604,335		$	1,590,986		$	1,464,197		$	1,597,698		$	1,443,780

Return on average tangible common equity (3)	12.27		%	14.00		%	12.56		%	13.13		%	12.76		%

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

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

(3)Tangible net income (non-GAAP) divided by average tangible common equity (non-GAAP).

BANR - Second Quarter 2026 Results

July 22, 2026

Page 18


ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIO	Quarters Ended									Six Months Ended
	Jun 30, 2026			Mar 31, 2026			Jun 30, 2025			Jun 30, 2026			Jun 30, 2025
Non-interest expense (GAAP)	$	107,990		$	102,608		$	101,348		$	210,598		$	202,607

Exclude: CDI amortization	(256)			(256)			(455)			(512)			(911)
State/municipal tax expense	(1,773)			(1,820)			(1,416)			(3,593)			(2,870)
REO operations	(165)			(109)			(392)			(274)			(331)
Merger and acquisition-related expenses	(238)			—			—			(238)			—
Building and lease exit costs	(47)			(9)			(834)			(56)			(834)
Adjusted non-interest expense (non-GAAP)	$	105,511		$	100,414		$	98,251		$	205,925		$	197,661

Net interest income (GAAP)	$	153,740		$	150,169		$	144,399		$	303,909		$	285,482
Non-interest income (GAAP)	18,222			19,161			17,751			37,383			36,859
Total revenue (GAAP)	171,962			169,330			162,150			341,292			322,341
Exclude: Net (gain) loss on sale of securities	(8)			1,242			3			1,234			3
Net change in valuation of financial instruments carried at fair value	157			(1,662)			(88)			(1,505)			(403)

Losses incurred on building and lease exits	—			—			919			—			919
Adjusted revenue (non-GAAP)	$	172,111		$	168,910		$	162,984		$	341,021		$	322,860

Efficiency ratio (GAAP)	62.80		%	60.60		%	62.50		%	61.71		%	62.85		%
Adjusted efficiency ratio (non-GAAP) (1)	61.30		%	59.45		%	60.28		%	60.38		%	61.22		%

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


TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Jun 30, 2025
Shareholders’ equity (GAAP)	$	1,999,263		$	1,966,634		$	1,946,297		$	1,865,664
Exclude goodwill and other intangible assets, net	374,100			374,356			374,612			375,268
Tangible common shareholders’ equity (non-GAAP)	$	1,625,163		$	1,592,278		$	1,571,685		$	1,490,396

Total assets (GAAP)	$	16,593,547		$	16,344,272		$	16,354,488		$	16,437,169
Exclude goodwill and other intangible assets, net	374,100			374,356			374,612			375,268
Total tangible assets (non-GAAP)	$	16,219,447		$	15,969,916		$	15,979,876		$	16,061,901
Common shareholders’ equity to total assets (GAAP)	12.05		%	12.03		%	11.90		%	11.35		%
Tangible common shareholders’ equity to tangible assets (non-GAAP)	10.02		%	9.97		%	9.84		%	9.28		%

TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP)	$	1,999,263		$	1,966,634		$	1,946,297		$	1,865,664
Tangible common shareholders’ equity (non-GAAP)	$	1,625,163		$	1,592,278		$	1,571,685		$	1,490,396
Common shares outstanding at end of period	33,984,909			33,875,098			34,097,856			34,583,994
Common shareholders’ equity (book value) per share (GAAP)	$	58.83		$	58.06		$	57.08		$	53.95
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)	$	47.82		$	47.00		$	46.09		$	43.09