Banner Corporation Reports Net Income of $45.1 Million, or $1.30 Per Diluted Share, for First Quarter 2025; Declares Quarterly Cash Dividend of $0.48 Per Share

Rhea-AI Summary

Banner (NASDAQ: BANR) reported Q1 2025 net income of $45.1 million, or $1.30 per diluted share, compared to $46.4 million in the previous quarter and $37.6 million in Q1 2024. Net interest income increased to $141.1 million, up from $140.5 million in the preceding quarter and $133.0 million year-over-year.

Key highlights include:

• Net interest margin rose to 3.92% from 3.82% in the previous quarter
• Total assets reached $16.17 billion with $11.28 billion in net loans
• Total deposits increased to $13.59 billion, with core deposits representing 89%
• Quarterly cash dividend declared at $0.48 per share
• Non-performing assets were $42.7 million, or 0.26% of total assets

Positive

• Net income increased 20% year-over-year to $45.1 million
• Net interest margin expanded to 3.92%, up 18 basis points year-over-year
• Total deposits grew 3% year-over-year to $13.59 billion
• Net loans increased 5% year-over-year to $11.28 billion
• Deposit costs decreased 6 basis points to 1.47% quarter-over-quarter

Negative

• Net income decreased quarter-over-quarter from $46.4M to $45.1M
• Non-performing assets increased to 0.26% of total assets from 0.19% year-over-year
• Non-interest expense increased to $101.3M from $99.5M in previous quarter
• Efficiency ratio deteriorated to 63.21% from 61.95% in previous quarter

Insights

Banking Financial Analyst

Banner's Q1 shows strong year-over-year growth with solid NIM expansion and loan growth, despite slight sequential earnings decline.

Banner delivered $45.1 million in net income ($1.30 per share) for Q1 2025, showing impressive 19.9% year-over-year growth from the $37.6 million reported in Q1 2024, though slightly below the $46.4 million from Q4 2024. The bank's performance reflects successful execution of its "super community bank strategy" with particular strength in net interest margin.

The standout metric this quarter is Banner's net interest margin expansion to 3.92%, up 10 basis points sequentially and 18 basis points year-over-year. This margin improvement occurred while many regional banks struggle with compression, demonstrating exceptional balance sheet management. The bank effectively navigated the shifting rate environment by increasing asset yields while simultaneously reducing funding costs - a difficult balancing act few competitors have mastered.

Loan growth remains robust at 5% year-over-year, with the portfolio reaching $11.28 billion. Construction loans showed particular strength, increasing 10% quarter-over-quarter to $1.67 billion, with significant activity in multifamily and affordable housing projects. This growth engine appears sustainable given the housing demand fundamentals in Banner's western markets.

Asset quality metrics show minor deterioration but remain excellent overall. Non-performing assets increased slightly to 0.26% of total assets from 0.24% in the previous quarter. The $3.1 million provision for credit losses, while significantly higher than the $520,000 from a year ago, appears prudent given the loan growth and economic uncertainty.

The bank's funding profile remains exceptional with core deposits comprising 89% of total deposits - an enviable position providing both stability and cost advantages. Banner's efficiency ratio ticked up to 63.21% from 61.95% in the preceding quarter, driven primarily by higher medical premiums and payroll tax expenses rather than fundamental operational issues.

Capital levels continue strengthening with tangible common equity per share increasing 13% year-over-year to $42.27, providing ample capacity for continued growth and the $0.48 quarterly dividend.

WALLA WALLA, Wash.--(BUSINESS WIRE)-- Banner Corporation (NASDAQ: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $45.1 million, or $1.30 per diluted share, for the first quarter of 2025, compared to $46.4 million, or $1.34 per diluted share, for the preceding quarter and $37.6 million, or $1.09 per diluted share, for the first quarter of 2024. Net interest income was $141.1 million in the first quarter of 2025, compared to $140.5 million in the preceding quarter and $133.0 million in the first quarter a year ago. The increase in net interest income compared to the preceding quarter reflects an overall increase in the yield on interest-earning assets and a decrease in funding costs, partially offset by a decrease in the average balance of interest-earning assets. The increase in net interest income compared to the prior year quarter reflects an increase in both the yield and average balance of interest-earning assets, partially offset by an increase in funding costs. First quarter 2025 results included a $3.1 million provision for credit losses, compared to $3.0 million in the preceding quarter and $520,000 in the first quarter of 2024.

Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share payable May 9, 2025, to common shareholders of record on April 29, 2025.

“Banner’s first quarter operating results reflect the continued successful execution of our super community bank strategy, which emphasizes growing new client relationships, maintaining our core funding position, promoting client loyalty and advocacy through our responsive service model, and sustaining a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the first quarter of 2025 benefited from our solid year over year loan growth as well as net interest margin expansion during the first quarter as a result of higher yields on interest-earning assets and lower funding costs. This benefit was partially offset by lower non-interest income and increased non-interest expense. The investments we have made and continue to make to improve our operating performance have positioned Banner well for the future. Additionally, Banner’s credit metrics continue to be strong, our reserve for loan losses remained solid, and our capital base continues to be robust. We continue to benefit from a strong core deposit base that has been resilient in a highly competitive environment, with core deposits representing 89% of total deposits at quarter end. Banner has upheld its core values for the past 134 years, which are to do the right thing for our clients, communities, colleagues, company and shareholders; and to provide consistent and reliable strength through all economic cycles and change events.”

At March 31, 2025, Banner, on a consolidated basis, had $16.17 billion in assets, $11.28 billion in net loans and $13.59 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.

First Quarter 2025 Highlights

• Net interest margin, on a tax equivalent basis, was 3.92%, compared to 3.82% in the preceding quarter and 3.74% in the first quarter a year ago.
• Revenue was $160.2 million for the first quarter of 2025, compared to $160.6 million in the preceding quarter and increased 11% from $144.6 million in the first quarter a year ago.
• Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities and the net change in valuation of financial instruments) was $159.9 million in the first quarter of 2025, compared to $160.1 million in the preceding quarter and increased 6% from $150.4 million in the first quarter a year ago.
• Net interest income was $141.1 million in the first quarter of 2025, compared to $140.5 million in the preceding quarter and increased 6% from $133.0 million in the first quarter a year ago.
• Mortgage banking operations revenue was $3.1 million for the first quarter of 2025, compared to $3.7 million in the preceding quarter and $2.3 million in the first quarter a year ago.
• Return on average assets was 1.15% for both the current and preceding quarter and 0.97% in the first quarter a year ago.
• Net loans receivable increased to $11.28 billion at March 31, 2025, compared to $11.20 billion at December 31, 2024, and increased 5% compared to $10.72 billion at March 31, 2024.
• Non-performing assets were $42.7 million, or 0.26% of total assets, at March 31, 2025, compared to $39.6 million, or 0.24% of total assets, at December 31, 2024 and $29.9 million, or 0.19% of total assets, at March 31, 2024.
• The allowance for credit losses - loans was $157.3 million, or 1.38% of total loans receivable, as of March 31, 2025, compared to $155.5 million, or 1.37% of total loans receivable, as of December 31, 2024 and $151.1 million, or 1.39% of total loans receivable, as of March 31, 2024.
• Total deposits increased to $13.59 billion at March 31, 2025, compared to $13.51 billion at December 31, 2024, and increased 3% compared to $13.16 billion at March 31, 2024.
• Core deposits represented 89% of total deposits at March 31, 2025.
• Dividends paid to shareholders were $0.48 per share in the quarter ended March 31, 2025.
• Common shareholders’ equity per share increased 3% to $53.16 at March 31, 2025, compared to $51.49 at the preceding quarter end, and increased 10% from $48.39 at March 31, 2024.
• Tangible common shareholders’ equity per share* increased 4% to $42.27 at March 31, 2025, compared to $40.57 at the preceding quarter end, and increased 13% from $37.40 at March 31, 2024.

*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 $141.1 million in the first quarter of 2025, compared to $140.5 million in the preceding quarter and $133.0 million in the first quarter a year ago. Net interest margin, on a tax equivalent basis, increased 10 basis points to 3.92% for the first quarter of 2025, compared to 3.82% in the preceding quarter, and increased 18 basis points compared to 3.74% in the first quarter a year ago. Net interest margin for the current quarter, compared to the preceding quarter, benefited from decreased funding costs and higher yields on interest earning assets.

Average yields on interest-earning assets increased four basis points to 5.35% for the first quarter of 2025, compared to 5.31% for the preceding quarter, and increased 19 basis points compared to 5.16% in the first quarter a year ago, primarily due to increases in average loan yields. Average loan yields increased five basis points to 6.07%, compared to 6.02% in the preceding quarter, and increased 20 basis points compared to 5.87% in the first quarter a year ago. The increase in average loan yields during the current quarter primarily reflects new loans being originated at higher interest rates and adjustable rate loans repricing higher.

Total deposit costs decreased six basis points to 1.47% in the first quarter of 2025, compared to 1.53% in the preceding quarter, and increased 10 basis points compared to 1.37% in the first quarter a year ago. The decrease in deposit costs in the current quarter compared to the prior quarter was primarily due to the lagging effect of interest rate declines in the prior quarter, partially offset by a decrease in the average balance of non-interest bearing deposits. In 2024, the Federal Open Market Committee (“FOMC”) of the Federal Reserve lowered the target range for the federal funds rate three times, resulting in a target range of 4.25% to 4.50% at March 31, 2025. The average rate paid on borrowings decreased 25 basis points to 4.32% in the first quarter of 2025, compared to 4.57% in the preceding quarter, and decreased compared to 4.98% in the first quarter a year ago, primarily due to the decreases in market interest rates. The total cost of funding liabilities decreased five basis points to 1.55% in the first quarter of 2025, compared to 1.60% in the preceding quarter, and increased slightly compared to 1.53% in the first quarter a year ago, due to fluctuations in the deposit costs and a continued decrease in the cost of other borrowings.

A $3.1 million provision for credit losses was recorded in the current quarter (comprised of a $4.5 million provision for credit losses - loans, a $1.4 million recapture of provision for credit losses - unfunded loan commitments and a $10,000 recapture of provision for credit losses - held-to-maturity debt securities). This compares to a $3.0 million provision for credit losses in the prior quarter (comprised of a $3.2 million provision for credit losses - loans, a $203,000 recapture of provision for credit losses - unfunded loan commitments and a $16,000 recapture of provision for credit losses - held-to-maturity debt securities) and a $520,000 provision for credit losses in the first quarter a year ago (comprised of a $1.4 million provision for credit losses - loans, an $887,000 recapture of provision for credit losses - unfunded loan commitments and a $17,000 recapture of provision for credit losses - held-to-maturity debt securities). The provision for credit losses for the current quarter primarily reflected loan growth in the construction portfolio and to a lesser extent risk rating migration and qualitative adjustments applied to address economic uncertainty.

Total non-interest income was $19.1 million in the first quarter of 2025, compared to $20.0 million in the preceding quarter and $11.6 million in the first quarter a year ago. The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to a $583,000 decrease in mortgage banking operations revenue and a $405,000 decrease in miscellaneous income, primarily due to a gain recognized on the sale of a non-performing loan during the fourth quarter of 2024, partially offset by a $431,000 increase in bank owned life insurance income due to the receipt of death benefit proceeds during the current quarter. The increase in non-interest income during the current quarter compared to the prior year quarter was primarily due to a $4.9 million decrease in the net loss recognized on the sale of securities and a $1.3 million increase in the fair value adjustments on financial instruments carried at fair value during the current quarter.

Mortgage banking operations revenue was $3.1 million in the first quarter of 2025, compared to $3.7 million in the preceding quarter and $2.3 million in the first quarter a year ago. The volume of one- to four-family loans sold during the current quarter decreased compared to the preceding quarter and increased compared to the prior year quarter. While the volume of one- to four-family loans sold increased compared to the prior year quarter, volumes remained low due to reduced refinancing and purchase activity in the current rate environment. The decrease in mortgage banking operations revenue from the preceding quarter reflects a $508,000 gain related to the pooled loan sale of $34.8 million of one- to four-family loans during the fourth quarter of 2024 and a decrease in the market value of our hedge, partially offset by an increase in the pricing of one- to four-family loans sold during the current quarter. Home purchase activity accounted for 84% of one- to four-family mortgage loan originations in the first quarter of 2025, 79% in the preceding quarter and 89% in the first quarter of 2024.

Total non-interest expense was $101.3 million in the first quarter of 2025, compared to $99.5 million in the preceding quarter and $97.6 million in the first quarter of 2024. The increase in non-interest expense for the current quarter compared to the prior quarter reflects a $2.3 million increase in salary and employee benefits, primarily resulting from increased medical premiums expense and payroll tax expense, and an $858,000 decrease in capitalized loan costs, partially offset by a $1.1 million decrease in advertising and marketing expenses, primarily due to decreases in printed media marketing and community development expenses. The increase in non-interest expense for the current quarter compared to the same quarter a year ago primarily reflects increases in salary and employee benefits and professional and legal expenses. Banner’s efficiency ratio was 63.21% for the first quarter of 2025, compared to 61.95% in the preceding quarter and 67.55% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 62.18% for the first quarter of 2025, compared to 60.74% in the preceding quarter and 63.70% 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 $16.17 billion at March 31, 2025, down from $16.20 billion at December 31, 2024 and up from $15.52 billion at March 31, 2024. The decrease compared to the prior quarter was primarily due to a decrease in securities and interest-bearing deposits. Securities and interest-bearing deposits held at other banks totaled $3.33 billion at March 31, 2025, compared to $3.40 billion at December 31, 2024 and $3.32 billion at March 31, 2024. The average effective duration of the securities portfolio was approximately 6.5 years at March 31, 2025, compared to 6.6 years at March 31, 2024.

Total loans receivable were $11.44 billion at March 31, 2025, up from $11.35 billion at December 31, 2024 and $10.87 billion at March 31, 2024. Construction, land and land development loans increased 10% to $1.67 billion at March 31, 2025, compared to $1.52 billion at December 31, 2024, and increased 6% compared to $1.57 billion at March 31, 2024. The increase was primarily the result of new loan production and advances, mostly related to multifamily construction projects, which included growth in affordable housing project loans, partially offset by payoffs and transfers to the portfolio upon completion of the construction phase. Commercial real estate loans decreased 1% to $3.84 billion at March 31, 2025, compared to $3.86 billion at December 31, 2024, and increased 6% compared to $3.61 billion at March 31, 2024. The increase from March 31, 2024 was primarily the result of new loan production and the conversion of commercial construction loans to the commercial real estate portfolio upon the completion of the construction phase. Multifamily real estate loans decreased 2% to $877.7 million at March 31, 2025, compared to $894.4 million at December 31, 2024, and increased 8% compared to $809.1 million at March 31, 2024. The increase from March 31, 2024 was primarily the result of the conversion of multifamily construction loans to the multifamily portfolio upon the completion of the construction phase. Commercial business loans decreased 1% to $2.41 billion at March 31, 2025, compared to $2.42 billion at December 31, 2024 and increased 5% compared to $2.29 billion at March 31, 2024, primarily due to new loan production.

Loans held for sale were $24.5 million at March 31, 2025, compared to $32.0 million at December 31, 2024 and $9.4 million at March 31, 2024. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $108.1 million, compared to $153.2 million in the preceding quarter and $65.9 million in the first quarter a year ago. The decrease in loans held for sale compared to the preceding quarter was primarily the result of loan sales exceeding new originations of one- to four- family residential mortgage held for sale loans during the quarter. The increase in loans held for sale compared to the prior year quarter was primarily the result of an increase in the origination of one- to four- family residential mortgage held for sale loans.

Total deposits were $13.59 billion at March 31, 2025, compared to $13.51 billion at December 31, 2024 and $13.16 billion a year ago. Core deposits increased 1% to $12.09 billion at March 31, 2025, compared to $12.01 billion at December 31, 2024, and increased 4% compared to $11.67 billion at March 31, 2024. The increase compared to the preceding and prior year quarters primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits were 89% of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024. Certificates of deposit were $1.50 billion at both March 31, 2025 and December 31, 2024, and increased 1% from $1.49 billion a year earlier. The increase during the current quarter compared to the first quarter a year ago was principally due to clients seeking higher yields moving funds from core deposit accounts to higher yielding certificates of deposit, partially offset by a $32.2 million decrease in brokered deposits.

FHLB advances were $168.0 million at March 31, 2025, compared to $290.0 million at December 31, 2024 and $52.0 million a year ago. At March 31, 2025, off-balance sheet liquidity included additional borrowing capacity of $3.14 billion at the FHLB and $1.65 billion at the Federal Reserve as well as federal funds line of credit agreements with other financial institutions of $125.0 million.

At March 31, 2025, total common shareholders’ equity was $1.83 billion or 11.34% of total assets, compared to $1.77 billion or 10.95% of total assets at December 31, 2024, and $1.66 billion or 10.73% of total assets at March 31, 2024. The increase at March 31, 2025 compared to December 31, 2024 was due to a decrease in accumulated other comprehensive loss of $29.3 million as the result of an increase in the fair value of the security portfolio and a $28.3 million increase in retained earnings as a result of $45.1 million in net income, partially offset by the accrual of $16.8 million of cash dividends during the first quarter of 2025. At March 31, 2025, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.46 billion, or 9.23% of tangible assets, compared to $1.40 billion, or 8.84% of tangible assets, at December 31, 2024, and $1.29 billion, or 8.50% 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 March 31, 2025, Banner’s estimated common equity Tier 1 capital ratio was 12.60%, its estimated Tier 1 leverage capital to average assets ratio was 11.22%, and its estimated total capital to risk-weighted assets ratio was 15.23%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

Credit Quality

The allowance for credit losses - loans was $157.3 million, or 1.38% of total loans receivable and 404% of non-performing loans, at March 31, 2025, compared to $155.5 million, or 1.37% of total loans receivable and 421% of non-performing loans, at December 31, 2024, and $151.1 million, or 1.39% of total loans receivable and 513% of non-performing loans, at March 31, 2024. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $12.2 million at March 31, 2025, compared to $13.6 million at December 31, 2024, and $13.6 million at March 31, 2024. Net loan charge-offs totaled $2.7 million in the first quarter of 2025, compared to net loan charge-offs of $2.3 million in the preceding quarter and net loan recoveries of $73,000 in the first quarter a year ago. Non-performing loans were $39.0 million at March 31, 2025, compared to $37.0 million at December 31, 2024, and $29.5 million a year ago. Substandard loans were $197.8 million as of March 31, 2025, compared to $192.5 million as of December 31, 2024 and $116.1 million a year ago. Total non-performing assets were $42.7 million, or 0.26% of total assets, at March 31, 2025, compared to $39.6 million, or 0.24% of total assets, at December 31, 2024, and $29.9 million, or 0.19% of total assets, a year ago.

Conference Call

Banner will host a conference call on Thursday April 17, 2025, at 8:00 a.m. PDT, to discuss its first 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 881889 to participate in the call. A replay of the call will be available at www.bannerbank.com.

About the Company

Banner Corporation is a $16.17 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

Forward-Looking Statements

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

Factors that could cause Banner’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: (1) adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a recession or slowed economic growth, or increased political instability; (2) changes in the interest rate environment, including increases or decreases in the Board of Governors of the Federal Reserve System (the “Federal Reserve”) benchmark rate and duration at which such interest rate levels are maintained, which could affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; (3) the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; (4) the effects of any federal government shutdown; (5) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (6) expectations regarding key growth initiatives and strategic priorities; (7) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses, which could necessitate additional provisions for credit losses, resulting both from loans originated and loans acquired from other financial institutions; (8) results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require increases in the allowance for credit losses or writing down of assets or impose restrictions or penalties with respect to Banner’s activities; (9) competitive pressures among depository institutions, including repricing and competitors’ pricing initiatives, and their impact on Banner’s market position, loan, and deposit products; (10) the effect of inflation on interest rate movements and their impact on client behavior and net interest margin; (11) fluctuations in real estate values; (12) the ability to adapt successfully to technological changes to meet clients’ needs and developments in the market place; (13) the ability to access cost-effective funding; (14) disruptions, security breaches or other adverse events, failures or interruptions in, or attacks on, information technology systems or on the third-party vendors who perform critical processing functions; (15) changes in financial markets; (16) the costs, effects and outcomes of litigation; (17) legislation or regulatory changes, including but not limited to changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws or interpretations thereof by taxing authorities; (18) the potential for new or increased tariffs, trade restrictions or geopolitical tensions that could affect economic activity or specific industry sectors including, but not limited to, our agriculture based lending; (19) changes in accounting principles, policies or guidelines; (20) future acquisitions by Banner of other depository institutions or lines of business, and associated risks of goodwill impairment due to changes in Banner’s business or market conditions; (21) 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; (22) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (23) other risks detailed from time to time in Banner’s other reports filed with and furnished to the Securities and Exchange Commission including Banner’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

RESULTS OF OPERATIONS		Quarters Ended
(in thousands except shares and per share data)		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
INTEREST INCOME:
Loans receivable		$	168,677			$	169,586			$	156,475
Mortgage-backed securities			15,744				16,086				16,934
Securities and cash equivalents			9,447				10,764				11,279
Total interest income			193,868				196,436				184,688
INTEREST EXPENSE:
Deposits			48,737				52,217				44,613
Federal Home Loan Bank (FHLB) advances			860				85				2,972
Other borrowings			694				817				1,175
Subordinated debt			2,494				2,781				2,969
Total interest expense			52,785				55,900				51,729
Net interest income			141,083				140,536				132,959
PROVISION FOR CREDIT LOSSES			3,139				3,000				520
Net interest income after provision for credit losses			137,944				137,536				132,439
NON-INTEREST INCOME:
Deposit fees and other service charges			10,769				11,018				11,022
Mortgage banking operations			3,103				3,686				2,335
Bank-owned life insurance			2,575				2,144				2,237
Miscellaneous			2,346				2,751				1,892
			18,793				19,599				17,486
Net gain (loss) on sale of securities			—				275				(4,903	)
Net change in valuation of financial instruments carried at fair value			315				161				(992	)
Total non-interest income			19,108				20,035				11,591
NON-INTEREST EXPENSE:
Salary and employee benefits			64,857				62,523				62,369
Less capitalized loan origination costs			(3,330	)			(4,188	)			(3,676	)
Occupancy and equipment			12,097				12,141				12,462
Information and computer data services			7,628				7,471				7,320
Payment and card processing services			5,750				5,771				5,710
Professional and legal expenses			2,430				3,025				1,530
Advertising and marketing			590				1,711				1,079
Deposit insurance			2,797				2,857				2,809
State and municipal business and use taxes			1,454				1,518				1,304
Real estate operations, net			(61	)			113				(220	)
Amortization of core deposit intangibles			456				589				723
Miscellaneous			6,591				5,947				6,231
Total non-interest expense			101,259				99,478				97,641
Income before provision for income taxes			55,793				58,093				46,389
PROVISION FOR INCOME TAXES			10,658				11,702				8,830
NET INCOME		$	45,135			$	46,391			$	37,559
Earnings per common share:
Basic		$	1.31			$	1.34			$	1.09
Diluted		$	1.30			$	1.34			$	1.09
Cumulative dividends declared per common share		$	0.48			$	0.48			$	0.48
Weighted average number of common shares outstanding:
Basic			34,509,815				34,501,016				34,391,564
Diluted			34,778,687				34,743,024				34,521,105
Increase in common shares outstanding			30,140				3,144				46,852

FINANCIAL CONDITION														Percentage Change
(in thousands except shares and per share data)		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024				Prior Qtr			Prior Yr Qtr
ASSETS
Cash and due from banks		$	213,574			$	203,402			$	168,427			5	%		27	%
Interest-bearing deposits			228,371				298,456				40,849			(23	)%		459	%
Total cash and cash equivalents			441,945				501,858				209,276			(12	)%		111	%
Securities - available for sale, amortized cost $2,426,395, $2,460,262, and $2,617,986, respectively			2,108,945				2,104,511				2,244,939			—	%		(6	)%
Securities - held to maturity, fair value $819,261, $825,528, and $869,097, respectively			991,796				1,001,564				1,038,312			(1	)%		(4	)%
Total securities			3,100,741				3,106,075				3,283,251			—	%		(6	)%
FHLB stock			17,286				22,451				11,741			(23	)%		47	%
Loans held for sale			24,536				32,021				9,357			(23	)%		162	%
Loans receivable			11,438,796				11,354,656				10,869,096			1	%		5	%
Allowance for credit losses – loans			(157,323	)			(155,521	)			(151,140	)		1	%		4	%
Net loans receivable			11,281,473				11,199,135				10,717,956			1	%		5	%
Accrued interest receivable			63,987				60,885				66,124			5	%		(3	)%
Property and equipment, net			119,649				124,589				129,889			(4	)%		(8	)%
Goodwill			373,121				373,121				373,121			—	%		—	%
Other intangibles, net			2,602				3,058				4,961			(15	)%		(48	)%
Bank-owned life insurance			313,942				312,549				306,600			—	%		2	%
Operating lease right-of-use assets			37,134				39,998				40,834			(7	)%		(9	)%
Other assets			394,396				424,297				365,169			(7	)%		8	%
Total assets		$	16,170,812			$	16,200,037			$	15,518,279			—	%		4	%
LIABILITIES
Deposits:
Non-interest-bearing		$	4,571,598			$	4,591,543			$	4,699,553			—	%		(3	)%
Interest-bearing transaction and savings accounts			7,517,617				7,423,183				6,973,338			1	%		8	%
Interest-bearing certificates			1,504,050				1,499,672				1,485,880			—	%		1	%
Total deposits			13,593,265				13,514,398				13,158,771			1	%		3	%
Advances from FHLB			168,000				290,000				52,000			(42	)%		223	%
Other borrowings			130,588				125,257				183,341			4	%		(29	)%
Subordinated notes, net			80,389				80,278				89,456			—	%		(10	)%
Junior subordinated debentures at fair value			67,711				67,477				66,586			—	%		2	%
Operating lease liabilities			40,466				43,472				45,524			(7	)%		(11	)%
Accrued expenses and other liabilities			210,771				258,070				211,578			(18	)%		—	%
Deferred compensation			46,169				46,759				46,515			(1	)%		(1	)%
Total liabilities			14,337,359				14,425,711				13,853,771			(1	)%		3	%
SHAREHOLDERS’ EQUITY
Common stock			1,308,967				1,307,509				1,300,969			—	%		1	%
Retained earnings			772,412				744,091				663,021			4	%		16	%
Accumulated other comprehensive loss			(247,926	)			(277,274	)			(299,482	)		(11	)%		(17	)%
Total shareholders’ equity			1,833,453				1,774,326				1,664,508			3	%		10	%
Total liabilities and shareholders’ equity		$	16,170,812			$	16,200,037			$	15,518,279			—	%		4	%
Common Shares Issued:
Shares outstanding at end of period			34,489,972				34,459,832				34,395,221
Common shareholders’ equity per share (1)		$	53.16			$	51.49			$	48.39
Common shareholders’ tangible equity per share (1) (2)		$	42.27			$	40.57			$	37.40
Common shareholders’ equity to total assets			11.34	%			10.95	%			10.73	%
Common shareholders’ tangible equity to tangible assets (2)			9.23	%			8.84	%			8.50	%
Consolidated Tier 1 leverage capital ratio			11.22	%			11.05	%			10.71	%

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

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
LOANS														Percentage Change
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024				Prior Qtr			Prior Yr Qtr
Commercial real estate (CRE):
Owner-occupied		$	1,020,829			$	1,027,426			$	905,063			(1	)%		13	%
Investment properties			1,598,387				1,623,672				1,544,885			(2	)%		3	%
Small balance CRE			1,217,458				1,213,792				1,159,355			—	%		5	%
Multifamily real estate			877,716				894,425				809,101			(2	)%		8	%
Construction, land and land development:
Commercial construction			146,467				122,362				158,011			20	%		(7	)%
Multifamily construction			618,942				513,706				573,014			20	%		8	%
One- to four-family construction			504,265				514,220				495,931			(2	)%		2	%
Land and land development			396,009				369,663				344,563			7	%		15	%
Commercial business:
Commercial business			1,283,754				1,318,333				1,262,716			(3	)%		2	%
Small business scored			1,122,550				1,104,117				1,028,067			2	%		9	%
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland			334,899				340,280				317,958			(2	)%		5	%
One- to four-family residential			1,600,283				1,591,260				1,566,834			1	%		2	%
Consumer:
Consumer—home equity revolving lines of credit			620,483				625,680				597,060			(1	)%		4	%
Consumer—other			96,754				95,720				106,538			1	%		(9	)%
Total loans receivable		$	11,438,796			$	11,354,656			$	10,869,096			1	%		5	%
Loans 30 - 89 days past due and on accrual		$	37,339			$	26,824			$	19,649
Total delinquent loans (including loans on non-accrual), net		$	71,927			$	55,432			$	39,429
Total delinquent loans / Total loans receivable			0.63	%			0.49	%			0.36	%

LOANS BY GEOGRAPHIC LOCATION														Percentage Change
		Mar 31, 2025						Dec 31, 2024			Mar 31, 2024			Prior Qtr			Prior Yr Qtr
		Amount			Percentage			Amount			Amount
Washington		$	5,260,906		46	%		$	5,245,886		$	5,091,912		—	%		3	%
California			2,927,835		26	%			2,861,435			2,687,114		2	%		9	%
Oregon			2,122,953		18	%			2,113,229			2,013,453		—	%		5	%
Idaho			665,625		6	%			665,158			613,155		—	%		9	%
Utah			88,858		1	%			82,459			72,652		8	%		22	%
Other			372,619		3	%			386,489			390,810		(4	)%		(5	)%
Total loans receivable		$	11,438,796		100	%		$	11,354,656		$	10,869,096		1	%		5	%

ADDITIONAL FINANCIAL INFORMATION (dollars in thousands)
LOAN ORIGINATIONS		Quarters Ended
		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024
Commercial real estate		$	37,041		$	124,554		$	67,362
Multifamily real estate			9,555			3,120			385
Construction and land			287,565			303,345			437,273
Commercial business			103,739			250,515			154,715
Agricultural business			12,765			17,177			34,406
One-to four-family residential			5,139			29,531			17,568
Consumer			80,030			73,791			66,145
Total loan originations (excluding loans held for sale)		$	535,834		$	802,033		$	777,854

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS		Quarters Ended
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Balance, beginning of period		$	155,521			$	154,585			$	149,643
Provision for credit losses – loans			4,549				3,219				1,424
Recoveries of loans previously charged off:
Commercial real estate			57				1,215				1,389
One- to four-family real estate			188				124				16
Commercial business			557				245				781
Agricultural business, including secured by farmland			10				2				106
Consumer			119				164				159
			931				1,750				2,451
Loans charged off:
Commercial real estate			—				(4	)			—
Construction and land			—				(5	)			—
One- to four-family real estate			(13	)			—				—
Commercial business			(3,301	)			(3,595	)			(1,809	)
Consumer			(364	)			(429	)			(569	)
			(3,678	)			(4,033	)			(2,378	)
Net charge-offs			(2,747	)			(2,283	)			73
Balance, end of period		$	157,323			$	155,521			$	151,140
Net (charge-offs) recoveries / Average loans receivable			(0.024	)%			(0.020	)%			0.001	%

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Commercial real estate		$	40,076			$	40,830			$	43,555
Multifamily real estate			10,109				10,308				9,293
Construction and land			32,042				29,038				28,908
One- to four-family real estate			20,752				20,807				20,432
Commercial business			38,665				38,611				35,544
Agricultural business, including secured by farmland			5,641				5,727				3,890
Consumer			10,038				10,200				9,518
Total allowance for credit losses – loans		$	157,323			$	155,521			$	151,140
Allowance for credit losses - loans / Total loans receivable			1.38	%			1.37	%			1.39	%
Allowance for credit losses - loans / Non-performing loans			404	%			421	%			513	%

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS		Quarters Ended
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Balance, beginning of period		$	13,562			$	13,765			$	14,484
Recapture of provision for credit losses - unfunded loan commitments			(1,400	)			(203	)			(887	)
Balance, end of period		$	12,162			$	13,562			$	13,597

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
NON-PERFORMING ASSETS		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Loans on non-accrual status:
Secured by real estate:
Commercial		$	2,182			$	2,186			$	2,753
Construction and land			4,359				3,963				5,029
One- to four-family			10,448				10,016				7,750
Commercial business			6,425				7,067				7,355
Agricultural business, including secured by farmland			10,301				8,485				2,496
Consumer			4,874				4,835				3,411
			38,589				36,552				28,794
Loans more than 90 days delinquent, still on accrual:
Secured by real estate:
Construction and land			—				—				286
One- to four-family			9				369				409
Commercial business			206				—				—
Consumer			155				35				—
			370				404				695
Total non-performing loans			38,959				36,956				29,489
REO			3,468				2,367				448
Other repossessed assets			300				300				—
Total non-performing assets		$	42,727			$	39,623			$	29,937
Total non-performing assets to total assets			0.26	%			0.24	%			0.19	%

LOANS BY CREDIT RISK RATING		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024
Pass		$	11,207,852		$	11,118,744		$	10,731,015
Special Mention			33,133			43,451			22,029
Substandard			197,811			192,461			116,052
Total		$	11,438,796		$	11,354,656		$	10,869,096

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
DEPOSIT COMPOSITION											Percentage Change
		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Prior Qtr			Prior Yr Qtr
Non-interest-bearing		$	4,571,598		$	4,591,543		$	4,699,553		—	%		(3	)%
Interest-bearing checking			2,431,279			2,393,864			2,112,799		2	%		15	%
Regular savings accounts			3,542,005			3,478,423			3,171,933		2	%		12	%
Money market accounts			1,544,333			1,550,896			1,688,606		—	%		(9	)%
Total interest-bearing transaction and savings accounts			7,517,617			7,423,183			6,973,338		1	%		8	%
Total core deposits			12,089,215			12,014,726			11,672,891		1	%		4	%
Interest-bearing certificates			1,504,050			1,499,672			1,485,880		—	%		1	%
Total deposits		$	13,593,265		$	13,514,398		$	13,158,771		1	%		3	%

GEOGRAPHIC CONCENTRATION OF DEPOSITS		Mar 31, 2025						Dec 31, 2024			Mar 31, 2024			Percentage Change
		Amount			Percentage			Amount			Amount			Prior Qtr			Prior Yr Qtr
Washington		$	7,394,201		54	%		$	7,441,413		$	7,258,785		(1	)%		2	%
Oregon			3,045,078		22	%			2,981,327			2,914,605		2	%		4	%
California			2,463,012		18	%			2,392,573			2,316,515		3	%		6	%
Idaho			690,974		5	%			699,085			668,866		(1	)%		3	%
Total deposits		$	13,593,265		100	%		$	13,514,398		$	13,158,771		1	%		3	%

INCLUDED IN TOTAL DEPOSITS		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024
Public non-interest-bearing accounts		$	146,390		$	165,667		$	140,477
Public interest-bearing transaction & savings accounts			239,707			248,746			251,161
Public interest-bearing certificates			24,226			25,423			28,821
Total public deposits		$	410,323		$	439,836		$	420,459
Collateralized public deposits		$	313,445		$	336,376		$	316,554
Total brokered deposits		$	75,321		$	50,346		$	107,527
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024
Number of deposit accounts			453,808			460,004			461,399
Average account balance per account		$	30		$	30		$	29

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ESTIMATED REGULATORY CAPITAL RATIOS AS OF MARCH 31, 2025		Actual						Minimum to be categorized as "Adequately Capitalized"						Minimum to be categorized as "Well Capitalized"
		Amount			Ratio			Amount			Ratio			Amount			Ratio
Banner Corporation-consolidated:
Total capital to risk-weighted assets		$	2,052,497		15.23	%		$	1,078,147		8.00	%		$	1,347,684		10.00	%
Tier 1 capital to risk-weighted assets			1,784,020		13.24	%			808,610		6.00	%			808,610		6.00	%
Tier 1 leverage capital to average assets			1,784,020		11.22	%			636,113		4.00	%			n/a		n/a
Common equity tier 1 capital to risk-weighted assets			1,697,520		12.60	%			606,458		4.50	%			n/a		n/a
Banner Bank:
Total capital to risk-weighted assets			1,911,810		14.16	%			1,079,945		8.00	%			1,349,932		10.00	%
Tier 1 capital to risk-weighted assets			1,743,056		12.91	%			809,959		6.00	%			1,079,945		8.00	%
Tier 1 leverage capital to average assets			1,743,056		10.95	%			636,570		4.00	%			795,713		5.00	%
Common equity tier 1 capital to risk-weighted assets			1,743,056		12.91	%			607,469		4.50	%			877,456		6.50	%

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

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREAD	Quarters Ended
	Mar 31, 2025										Dec 31, 2024										Mar 31, 2024
	Average Balance			Interest and Dividends				Yield / Cost (3)			Average Balance			Interest and Dividends				Yield / Cost (3)			Average Balance			Interest and Dividends				Yield / Cost (3)
Interest-earning assets:
Held for sale loans	$	22,457		$	357			6.45	%		$	61,585		$	1,049			6.78	%		$	9,939		$	167			6.76	%
Mortgage loans		9,366,213			137,724			5.96	%			9,267,076			136,831			5.87	%			8,892,561			125,284			5.67	%
Commercial/agricultural loans		1,907,212			30,752			6.54	%			1,900,337			31,873			6.67	%			1,830,095			30,847			6.78	%
Consumer and other loans		121,492			2,092			6.98	%			124,726			2,078			6.63	%			133,854			2,196			6.60	%
Total loans (1)		11,417,374			170,925			6.07	%			11,353,724			171,831			6.02	%			10,866,449			158,494			5.87	%
Mortgage-backed securities		2,542,983			15,895			2.53	%			2,576,908			16,228			2.51	%			2,728,640			17,076			2.52	%
Other securities		902,732			9,687			4.35	%			919,742			10,281			4.45	%			984,639			11,501			4.70	%
Interest-bearing deposits with banks		65,758			484			2.99	%			107,404			1,043			3.86	%			45,264			459			4.08	%
FHLB stock		12,804			149			4.72	%			9,887			316			12.71	%			19,073			209			4.41	%
Total investment securities		3,524,277			26,215			3.02	%			3,613,941			27,868			3.07	%			3,777,616			29,245			3.11	%
Total interest-earning assets		14,941,651			197,140			5.35	%			14,967,665			199,699			5.31	%			14,644,065			187,739			5.16	%
Non-interest-earning assets		1,006,497										1,016,366										943,725
Total assets	$	15,948,148									$	15,984,031									$	15,587,790
Deposits:
Interest-bearing checking accounts	$	2,381,106			8,537			1.45	%		$	2,377,179			9,279			1.55	%		$	2,104,242			6,716			1.28	%
Savings accounts		3,450,908			18,103			2.13	%			3,441,196			19,447			2.25	%			3,066,448			15,279			2.00	%
Money market accounts		1,555,262			7,860			2.05	%			1,584,092			8,510			2.14	%			1,674,159			8,388			2.02	%
Certificates of deposit		1,531,428			14,237			3.77	%			1,513,966			14,981			3.94	%			1,500,429			14,230			3.81	%
Total interest-bearing deposits		8,918,704			48,737			2.22	%			8,916,433			52,217			2.33	%			8,345,278			44,613			2.15	%
Non-interest-bearing deposits		4,526,596			—			—	%			4,640,557			—			—	%			4,711,922			—			—	%
Total deposits		13,445,300			48,737			1.47	%			13,556,990			52,217			1.53	%			13,057,200			44,613			1.37	%
Other interest-bearing liabilities:
FHLB advances		75,300			860			4.63	%			7,522			85			4.50	%			212,989			2,972			5.61	%
Other borrowings		134,761			694			2.09	%			143,097			817			2.27	%			180,692			1,175			2.62	%
Junior subordinated debentures and subordinated notes		169,678			2,494			5.96	%			169,678			2,781			6.52	%			181,579			2,969			6.58	%
Total borrowings		379,739			4,048			4.32	%			320,297			3,683			4.57	%			575,260			7,116			4.98	%
Total funding liabilities		13,825,039			52,785			1.55	%			13,877,287			55,900			1.60	%			13,632,460			51,729			1.53	%
Other non-interest-bearing liabilities (2)		324,031										324,447										303,412
Total liabilities		14,149,070										14,201,734										13,935,872
Shareholders’ equity		1,799,078										1,782,297										1,651,918
Total liabilities and shareholders’ equity	$	15,948,148									$	15,984,031									$	15,587,790
Net interest income/rate spread (tax equivalent)				$	144,355			3.80	%					$	143,799			3.71	%					$	136,010			3.63	%
Net interest margin (tax equivalent)								3.92	%									3.82	%									3.74	%
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis					(3,272	)									(3,263	)									(3,051	)
Net interest income and margin, as reported				$	141,083			3.83	%					$	140,536			3.74	%					$	132,959			3.65	%
Additional Key Financial Ratios:
Return on average assets								1.15	%									1.15	%									0.97	%
Adjusted return on average assets (4)								1.14	%									1.15	%									1.08	%
Return on average equity								10.17	%									10.35	%									9.14	%
Adjusted return on average equity (4)								10.12	%									10.28	%									10.24	%
Average equity/average assets								11.28	%									11.15	%									10.60	%
Average interest-earning assets/average interest-bearing liabilities								160.69	%									162.05	%									164.16	%
Average interest-earning assets/average funding liabilities								108.08	%									107.86	%									107.42	%
Non-interest income/average assets								0.49	%									0.50	%									0.30	%
Non-interest expense/average assets								2.57	%									2.48	%									2.52	%
Efficiency ratio								63.21	%									61.95	%									67.55	%
Adjusted efficiency ratio (4)								62.18	%									60.74	%									63.70	%

(1)		Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans.
(2)		Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.
(3)		Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $2.2 million for both the quarters ended March 31, 2025 and December 31, 2024, and $2.0 million for the quarter ended March 31, 2024. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.0 million for each of the quarters ended March 31, 2025, December 31, 2024 and March 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.

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
* Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this earnings release contains certain non-GAAP financial measures. Tangible common shareholders’ equity per share and the ratio of tangible common equity to tangible assets, and references to adjusted revenue, adjusted earnings, the adjusted return on average assets, the adjusted return on average equity and the adjusted efficiency ratio represent non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:
ADJUSTED REVENUE		Quarters Ended
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Net interest income (GAAP)		$	141,083			$	140,536			$	132,959
Non-interest income (GAAP)			19,108				20,035				11,591
Total revenue (GAAP)			160,191				160,571				144,550
Exclude: Net (gain) loss on sale of securities			—				(275	)			4,903
Net change in valuation of financial instruments carried at fair value			(315	)			(161	)			992
Adjusted revenue (non-GAAP)		$	159,876			$	160,135			$	150,445

ADJUSTED EARNINGS		Quarters Ended
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Net income (GAAP)		$	45,135			$	46,391			$	37,559
Exclude: Net (gain) loss on sale of securities			—				(275	)			4,903
Net change in valuation of financial instruments carried at fair value			(315	)			(161	)			992
Related net tax expense (benefit)			76				105				(1,415	)
Total adjusted earnings (non-GAAP)		$	44,896			$	46,060			$	42,039
Diluted earnings per share (GAAP)		$	1.30			$	1.34			$	1.09
Diluted adjusted earnings per share (non-GAAP)		$	1.29			$	1.33			$	1.22
Return on average assets			1.15	%			1.15	%			0.97	%
Adjusted return on average assets (1)			1.14	%			1.15	%			1.08	%
Return on average equity			10.17	%			10.35	%			9.14	%
Adjusted return on average equity (2)			10.12	%			10.28	%			10.24	%

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

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIO		Quarters Ended
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Non-interest expense (GAAP)		$	101,259			$	99,478			$	97,641
Exclude: CDI amortization			(456	)			(589	)			(723	)
State/municipal tax expense			(1,454	)			(1,518	)			(1,304	)
REO operations			61				(113	)			220
Adjusted non-interest expense (non-GAAP)		$	99,410			$	97,258			$	95,834
Net interest income (GAAP)		$	141,083			$	140,536			$	132,959
Non-interest income (GAAP)			19,108				20,035				11,591
Total revenue (GAAP)			160,191				160,571				144,550
Exclude: Net (gain) loss on sale of securities			—				(275	)			4,903
Net change in valuation of financial instruments carried at fair value			(315	)			(161	)			992
Adjusted revenue (non-GAAP)		$	159,876			$	160,135			$	150,445
Efficiency ratio (GAAP)			63.21	%			61.95	%			67.55	%
Adjusted efficiency ratio (non-GAAP) (1)			62.18	%			60.74	%			63.70	%

(1)

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

TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
		Mar 31, 2025				Dec 31, 2024				Mar 31, 2024
Shareholders’ equity (GAAP)		$	1,833,453			$	1,774,326			$	1,664,508
Exclude goodwill and other intangible assets, net			375,723				376,179				378,082
Tangible common shareholders’ equity (non-GAAP)		$	1,457,730			$	1,398,147			$	1,286,426
Total assets (GAAP)		$	16,170,812			$	16,200,037			$	15,518,279
Exclude goodwill and other intangible assets, net			375,723				376,179				378,082
Total tangible assets (non-GAAP)		$	15,795,089			$	15,823,858			$	15,140,197
Common shareholders’ equity to total assets (GAAP)			11.34	%			10.95	%			10.73	%
Tangible common shareholders’ equity to tangible assets (non-GAAP)			9.23	%			8.84	%			8.50	%
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP)		$	1,833,453			$	1,774,326			$	1,664,508
Tangible common shareholders’ equity (non-GAAP)		$	1,457,730			$	1,398,147			$	1,286,426
Common shares outstanding at end of period			34,489,972				34,459,832				34,395,221
Common shareholders’ equity (book value) per share (GAAP)		$	53.16			$	51.49			$	48.39
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)		$	42.27			$	40.57			$	37.40

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250416009714/en/

MARK J. GRESCOVICH,

PRESIDENT & CEO

ROBERT G. BUTTERFIELD, CFO

(509) 527-3636

Source: Banner Corporation

FAQ

What was Banner 's (BANR) earnings per share in Q1 2025?

Banner reported earnings of $1.30 per diluted share in Q1 2025.

How much did Banner 's (BANR) net interest income grow year-over-year in Q1 2025?

Net interest income grew 6% year-over-year to $141.1 million in Q1 2025, up from $133.0 million in Q1 2024.

What is Banner 's (BANR) dividend payment for Q1 2025?

Banner declared a quarterly cash dividend of $0.48 per share, payable May 9, 2025, to shareholders of record on April 29, 2025.

What was Banner 's (BANR) net interest margin in Q1 2025?

Banner's net interest margin was 3.92% in Q1 2025, up from 3.82% in the previous quarter and 3.74% year-over-year.