$BANR

BANNER CORP

CIK:0000946673|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
INTEREST INCOME:
Loans receivable	$ 178,389	$ 175,373	$ 352,092	$ 344,050
Mortgage-backed securities	14,053	15,416	28,369	31,160
Securities and cash equivalents	10,244	9,470	20,043	18,917
Interest and Dividend Income, Operating, Total	202,686	200,259	400,504	394,127
INTEREST EXPENSE:
Deposits	45,554	49,316	91,232	98,053
FHLB advances	1,426	3,370	1,466	4,230
Other borrowings	732	675	1,429	1,369
Subordinated debt	1,234	2,499	2,468	4,993
Interest Expense, Operating	(48,946)	(55,860)	(96,595)	(108,645)
Net interest income	153,740	144,399	303,909	285,482
PROVISION FOR CREDIT LOSSES	3,818	4,795	3,022	7,934
Net interest income after provision (recapture) for credit losses	149,922	139,604	300,887	277,548
NON-INTEREST INCOME:
Deposit fees and other service charges	11,728	10,835	23,119	21,604
Mortgage banking operations	2,792	3,226	6,004	6,329
BOLI	2,471	2,384	4,783	4,959
Miscellaneous	1,380	1,221	3,206	3,567
Other operating income	18,371	17,666	37,112	36,459
Net gain (loss) on sale of securities	8	(3)	(1,234)	(3)
Net change in valuation of financial instruments carried at fair value	(157)	88	1,505	403
Total non-interest income	18,222	17,751	37,383	36,859
NON-INTEREST EXPENSE:
Salary and employee benefits	69,388	65,486	137,120	130,343
Less capitalized loan origination costs	(5,283)	(4,924)	(9,169)	(8,254)
Occupancy and equipment	10,936	12,256	21,633	24,353
Information and computer data services	10,322	8,199	18,635	15,827
Payment and card processing services	6,218	5,899	12,259	11,649
Professional and legal expenses	2,719	2,271	4,332	4,701
Advertising and marketing	1,982	1,087	2,655	1,677
Deposit insurance	2,819	2,800	5,536	5,597
State and municipal business and use taxes	1,773	1,416	3,593	2,870
Real estate operations, net	165	392	274	331
Amortization of core deposit intangibles	256	455	512	911
Miscellaneous	6,695	6,011	13,218	12,602
Total non-interest expense	107,990	101,348	210,598	202,607
Income before provision for income taxes	60,154	56,007	127,672	111,800
PROVISION FOR INCOME TAXES	11,268	10,511	24,070	21,169
NET INCOME	$ 48,886	$ 45,496	$ 103,602	$ 90,631
Earnings per common share:
Basic	$ 1.44	$ 1.31	$ 3.04	$ 2.62
Diluted	1.43	1.31	3.03	2.61
Cumulative dividends declared per common share	$ 0.52	$ 0.48	$ 1.02	$ 0.96
Weighted average number of common shares outstanding, Basic	34,012,611	34,627,433	34,025,849	34,568,948
Weighted average number of common shares outstanding, Diluted	34,129,173	34,738,948	34,197,096	34,761,044

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES:
Net Income (Loss) Attributable to Parent	$ 103,602	$ 90,631
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation	7,080	8,474
Deferred income and expense, net of amortization	(5,458)	(4,817)
Capitalized loan servicing rights, net of amortization	207	225
Amortization of core deposit intangibles	512	911
Loss on sale of securities, net	1,234	3
Net change in valuation of financial instruments carried at fair value	(1,505)	(403)
Decrease in deferred taxes	(2,774)	(1,941)
Increase in current taxes payable/receivable, net	(4,823)	(4,348)
Stock-based compensation	5,657	4,913
Net change in cash surrender value of BOLI	(4,783)	(4,652)
Gain on sale of loans, excluding capitalized servicing rights	(2,626)	(3,051)
Loss on disposal of real estate held for sale and property and equipment, net	188	948
PROVISION FOR CREDIT LOSSES	3,022	7,934
Origination of loans held for sale	(198,383)	(171,026)
Proceeds from sales of loans held for sale	270,343	215,707
Net change in:
Other assets	11,853	16,642
Other liabilities	(40,024)	(47,943)
Net cash provided from operating activities	148,870	112,089
INVESTING ACTIVITIES:
Purchases of securities—available-for-sale	164,586	18,896
Principal repayments and maturities of securities—available-for-sale	145,188	105,638
Proceeds from sales of securities—available-for-sale	14,727	0
Principal repayments and maturities of securities—held-to-maturity	32,079	20,326
Loan originations, net of repayments	(330,845)	(394,673)
Purchases of loans and participating interest in loans	0	(10,780)
Proceeds from sales of other loans	7,170	20,189
Purchases of property and equipment	(3,960)	(4,398)
Proceeds from sale of real estate held for sale and sale of other property	2,453	1,875
Proceeds from FHLB stock repurchase program	50,985	112,775
Purchase of FHLB stock	(58,717)	(125,475)
Other	1,442	873
Net cash used by investing activities	(304,098)	(292,585)
FINANCING ACTIVITIES:
Increase in deposits, net	46,448	12,893
Advances of overnight and short term FHLB borrowings, net	170,000	275,000
Decrease in other borrowings, net	6,783	(8,146)
Repayment of junior subordinated debentures	0	(80,500)
Payments of Ordinary Dividends, Common Stock	35,557	33,843
Payments for Repurchase of Common Stock	(16,148)	0
Taxes paid related to net share settlement of equity awards	(3,486)	(3,418)
Net Cash Provided by (Used in) Financing Activities, Total	168,040	161,986
NET CHANGE IN CASH AND CASH EQUIVALENTS	12,812	(18,510)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	422,640	501,858
CASH AND CASH EQUIVALENTS, END OF PERIOD	435,452	483,348
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid in cash	100,855	111,040
Tax paid	17,720	16,592
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Transfer of loans to real estate owned and other repossessed assets	2,609	4,671
Loan and Lease, Transfer from Held-in-Portfolio to Held-for-Sale	53,592	47,260
Investment in BOLI	$ (34)	$ (39)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 215,508	$ 182,772
Interest-bearing deposits	219,944	239,868
Total cash and cash equivalents	435,452	422,640
Debt Securities, Available-for-Sale	2,015,891	2,016,261
Securities—held-to-maturity, net of allowance for credit losses of $283 and $291, respectively	929,309	961,196
Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss, Total	2,945,200	2,977,457
Federal Home Loan Bank (FHLB) stock	24,209	16,476
Loans held for sale (includes $17,139 and $34,586, at fair value, respectively)	27,160	42,902
Financing Receivable, before Allowance for Credit Loss	11,994,410	11,721,687
Financing Receivable, Allowance for Credit Loss	161,849	160,276
Net loans receivable	11,832,561	11,561,411
Accrued interest receivable	65,016	60,525
Property and equipment, net	108,247	111,522
Goodwill	373,121	373,121
Other intangibles, net	979	1,491
Bank-owned life insurance (BOLI)	324,164	319,347
Deferred tax assets, net	125,275	127,587
Operating lease right-of-use assets	29,534	32,736
Other assets	302,629	307,273
Total assets	16,593,547	16,354,488
Deposits:
Non-interest-bearing accounts	4,542,942	4,489,839
Regular savings accounts	7,773,630	7,721,003
Interest-bearing certificates	1,473,021	1,532,304
Total deposits	13,789,593	13,743,146
Advances from FHLB	320,000	150,000
Other borrowings	114,497	107,715
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities)	79,652	79,151
Operating lease liabilities	32,108	35,755
Accrued expenses and other liabilities	210,134	245,266
Deferred compensation	48,300	47,158
Total liabilities	14,594,284	14,408,191
COMMITMENTS AND CONTINGENCIES (Note 11)
SHAREHOLDERS’ EQUITY
Preferred stock - $0.01 par value per share, 500,000 shares authorized; no shares outstanding at June 30, 2026 and December 31, 2025	0	0
Retained earnings	940,210	871,803
Carrying value of shares held in trust for stock-based compensation plans	(5,682)	(5,813)
Liability for common stock issued to stock related compensation plans	5,682	5,813
Accumulated other comprehensive loss	(209,474)	(208,011)
Total shareholders’ equity	1,999,263	1,946,297
Total liabilities and shareholders’ equity	16,593,547	16,354,488
Voting Common Stock [Member]
SHAREHOLDERS’ EQUITY
Common stock and paid in capital	1,268,527	1,282,505
Nonvoting Common Stock [Member]
SHAREHOLDERS’ EQUITY
Common stock and paid in capital	$ 0	$ 0