EX-99.1 2 banr-06302025xex991earning.htm EX-99.1
Exhibit 99.1

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

Banner Corporation Reports Net Income of $45.5 Million, or $1.31 Per Diluted Share, for Second Quarter 2025;
Declares Quarterly Cash Dividend of $0.48 Per Share
Walla Walla, WA - July 16, 2025 - Banner Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $45.5 million, or $1.31 per diluted share, for the second quarter of 2025, compared to $45.1 million, or $1.30 per diluted share, for the preceding quarter and $39.8 million, or $1.15 per diluted share, for the second quarter of 2024. Net interest income was $144.4 million for the second quarter of 2025, compared to $141.1 million in the preceding quarter and $132.5 million for the second quarter a year ago. The increase in net interest income compared to the preceding quarter reflects an increase in both the yield and average balance of interest-earning assets, partially offset by an increase in funding costs. The increase in net interest income compared to the prior year quarter also reflects an increase in both the yield and average balance of interest-earning assets as well as a decrease in overall funding costs. Second quarter 2025 results included a $4.8 million provision for credit losses, compared to $3.1 million in the preceding quarter and $2.4 million in the second quarter of 2024. Net income was $90.6 million, or $2.61 per diluted share, for the six months ended June 30, 2025, compared to net income of $77.4 million, or $2.24 per diluted share, for the six months ended June 30, 2024. Banner’s results for the six months ended June 30, 2025 include a $7.9 million provision for credit losses, a $3,000 net loss on the sale of securities and a $403,000 net increase in the fair value adjustments on financial instruments carried at fair value, compared to a $2.9 million provision for credit losses, a $5.5 million net loss on the sale of securities and a $1.2 million net decrease in the fair value adjustments on financial instruments carried at fair value during the same period in 2024.
Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share payable August 15, 2025, to common shareholders of record on August 5, 2025.
“Banner’s second quarter performance highlights the strength of our super community bank strategy, which focuses on building client relationships, preserving a strong funding base, and delivering exceptional service while sustaining a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the second quarter of 2025 benefited from solid year over year loan growth as well as higher yields on interest-earning assets. This benefit was partially offset by higher funding costs. The strategic investments we have made continue to enhance our operation and position Banner well for long-term success. Banner’s credit metrics continue to be strong, our reserve for loan losses remains solid, and our capital base continues to be robust. We also continue to benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter-end. For 134 years, Banner has upheld its core values and remained committed to doing the right thing for our clients, communities, colleagues, company and shareholders, while delivering strength and consistency through all economic cycles and change events.”
At June 30, 2025, Banner, on a consolidated basis, had $16.44 billion in assets, $11.53 billion in net loans and $13.53 billion in deposits. Banner operates 135 full-service branch offices, including branches located in eight of the top 20 largest western Metropolitan Statistical Areas by population.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 2
Second Quarter 2025 Highlights
•Net interest margin, on a tax equivalent basis, was 3.92% for both the current and preceding quarters, compared to 3.70% in the second quarter a year ago.
•Revenue was $162.2 million for the second quarter of 2025, compared to $160.2 million in the preceding quarter and increased 8% from $149.7 million in the second quarter a year ago.
•Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities, the net change in valuation of financial instruments, and losses incurred on building and lease exits) was $163.0 million in the second quarter of 2025, compared to $159.9 million in the preceding quarter and increased 8% from $150.5 million in the second quarter a year ago.
•Net interest income was $144.4 million in the second quarter of 2025, compared to $141.1 million in the preceding quarter and increased 9% from $132.5 million in the second quarter a year ago.
•Mortgage banking operations revenue was $3.2 million for the second quarter of 2025, compared to $3.1 million in the preceding quarter and $3.0 million in the second quarter a year ago.
•Return on average assets was 1.13%, compared to 1.15% in the preceding quarter and 1.02% in the second quarter a year ago.
•Net loans receivable increased 2% to $11.53 billion at June 30, 2025, compared to $11.28 billion at March 31, 2025, and increased 5% compared to $10.99 billion at June 30, 2024.
•Non-performing assets were $49.8 million, or 0.30% of total assets, at June 30, 2025, compared to $42.7 million, or 0.26% of total assets, at March 31, 2025 and $33.3 million, or 0.21% of total assets, at June 30, 2024.
•The allowance for credit losses - loans was $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025, compared to $157.3 million, or 1.38% of total loans receivable, as of March 31, 2025 and $152.8 million, or 1.37% of total loans receivable, as of June 30, 2024.
•Total deposits decreased to $13.53 billion at June 30, 2025, compared to $13.59 billion at March 31, 2025, and increased 3% compared to $13.08 billion at June 30, 2024.
•Core deposits represented 89% of total deposits at June 30, 2025.
•Dividends paid to shareholders were $0.48 per share in the quarter ended June 30, 2025.
•Common shareholders’ equity per share increased 1% to $53.95 at June 30, 2025, compared to $53.16 at the preceding quarter end, and increased 10% from $49.07 at June 30, 2024.
•Tangible common shareholders’ equity per share* increased 2% to $43.09 at June 30, 2025, compared to $42.27 at the preceding quarter end, and increased 13% from $38.12 at June 30, 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 $144.4 million in the second quarter of 2025, compared to $141.1 million in the preceding quarter and $132.5 million in the second quarter a year ago. Net interest margin, on a tax equivalent basis, was 3.92% for both the second quarter of 2025 and the preceding quarter, and increased 22 basis points compared to 3.70% in the second quarter a year ago. Net interest margin for the current quarter benefited from higher yields on interest earning assets.
Interest income was $200.3 million in the second quarter of 2025, compared to $193.9 million in the preceding quarter and $189.1 million in the second quarter a year ago. Average yields on interest-earning assets increased five basis points to 5.40% for the second quarter of 2025, compared to 5.35% for the preceding quarter, and increased 15 basis points compared to 5.25% in the second quarter a year ago, primarily due to increases in average loan yields. Average loan yields increased five basis points to 6.12%, compared to 6.07% in the preceding quarter, and increased 16 basis points compared to 5.96% in the second 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.
Interest expense was $55.9 million in the second quarter of 2025, compared to $52.8 million in the preceding quarter and $56.6 million in the second quarter a year ago. Total deposit costs were 1.47% in both the second quarter of 2025 and the preceding quarter and decreased three basis points compared to 1.50% in the second quarter a year ago. The decrease in deposit costs in the current quarter compared to the same quarter a year ago was primarily due to the interest rate declines in the second half of 2024. The average rate paid on borrowings increased 15 basis points to 4.47% in the second quarter of 2025, compared to 4.32% in the preceding quarter, and decreased compared to 5.07% in the second quarter a year ago, primarily due to the decreases in market interest rates. The total cost of funding liabilities increased five basis points to 1.60% in the second quarter of 2025, compared to 1.55% in the preceding quarter, primarily due to an increase in the average balance of FHLB advances to temporarily fund loan growth, and decreased compared to 1.66% in the second quarter a year ago, primarily due to deposit interest rate declines.
A $4.8 million provision for credit losses was recorded in the current quarter (comprised of a $4.2 million provision for credit losses - loans, a $588,000 provision for credit losses - unfunded loan commitments and a $6,000 provision for credit losses - held-to-maturity debt securities). This compares to a $3.1 million provision for credit losses in the prior 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) and a $2.4 million provision for credit losses in the second quarter a year ago (comprised of a $2.0 million provision for credit losses - loans, a $430,000 provision for credit losses - unfunded loan commitments and a $14,000 recapture of provision for credit losses - held-to-maturity debt securities). The provision for credit losses recorded in the current quarter primarily reflected loan growth, as well as risk rating migration which impacted the overall estimated reserve requirements.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 3
Total non-interest income was $17.8 million in the second quarter of 2025, compared to $19.1 million in the preceding quarter and $17.2 million in the second quarter a year ago. The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to a $1.1 million decrease in miscellaneous income, primarily due to losses incurred on building and lease exits 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 $559,000 decrease in the net loss recognized on the sale of securities and a $278,000 increase in the fair value adjustments on financial instruments carried at fair value during the current quarter, partially offset by the decrease in miscellaneous income. Total non-interest income was $36.9 million for the six months ended June 30, 2025, compared to $28.8 million for the same period a year earlier.
Mortgage banking operations revenue was $3.2 million in the second quarter of 2025, compared to $3.1 million in the preceding quarter and $3.0 million in the second 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. Home purchase activity accounted for 85% of one- to four-family mortgage loan originations in the second quarter of 2025, 84% in the preceding quarter and 89% in the second quarter of 2024.
Total non-interest expense was $101.3 million in both the second quarter of 2025 and the preceding quarter and was $98.1 million in the second quarter of 2024. Non-interest expense for the current quarter compared to the previous quarter reflects a $629,000 increase in salary and employee benefits, primarily resulting from increased loan commissions and normal salary and wage increases, a $571,000 increase in information and computer data services, primarily due to increases in computer software expenses, and a $497,000 increase in advertising and marketing expenses, primarily due to increases in printed media marketing and community development expenses, offset by a $1.6 million increase in capitalized loan origination costs. In addition, the current quarter included $834,000 of building and lease exit costs. 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, information and computer data services and professional and legal expenses. For the six months ended June 30, 2025, total non-interest expense was $202.6 million, compared to $195.8 million for the six months ended June 30, 2024. Banner’s efficiency ratio was 62.50% for the second quarter of 2025, compared to 63.21% in the preceding quarter and 65.53% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 60.28% for the second quarter of 2025, compared to 62.18% in the preceding quarter and 63.60% 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 $16.44 billion at June 30, 2025, up from $16.17 billion at March 31, 2025 and $15.82 billion at June 30, 2024. The increase compared to the prior quarter was primarily due to increases in total loans receivable, partially offset by decreases in securities. Securities and interest-bearing deposits held at other banks totaled $3.29 billion at June 30, 2025, compared to $3.33 billion at March 31, 2025 and $3.27 billion at June 30, 2024. The average effective duration of the securities portfolio was approximately 6.6 years at June 30, 2025, compared to 6.5 years at June 30, 2024.
Total loans receivable were $11.69 billion at June 30, 2025, up from $11.44 billion at March 31, 2025 and $11.14 billion at June 30, 2024. Commercial real estate loans increased 4% to $3.97 billion at June 30, 2025, compared to $3.84 billion at March 31, 2025, and increased 7% compared to $3.72 billion at June 30, 2024. The increase in commercial real estate loans from March 31, 2025 was primarily the result of new loan production and the year over year increase was a combination of both 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 $860.7 million at June 30, 2025, compared to $877.7 million at March 31, 2025, and increased 20% compared to $717.1 million at June 30, 2024. The increase from June 30, 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 increased 3% to $2.47 billion at June 30, 2025, compared to $2.41 billion at March 31, 2025 and increased 4% compared to $2.37 billion at June 30, 2024, primarily due to new loan production.
Loans held for sale were $37.7 million at June 30, 2025, compared to $24.5 million at March 31, 2025 and $13.4 million at June 30, 2024. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $104.6 million, compared to $108.1 million in the preceding quarter and $94.9 million in the second quarter a year ago. The increase in loans held for sale compared to the preceding and prior year quarters was primarily the result of increased originations of one- to four- family residential mortgage loans held for sale, with originations outpacing loan sales during the quarter.
Total deposits were $13.53 billion at June 30, 2025, compared to $13.59 billion at March 31, 2025 and $13.08 billion a year ago. Core deposits decreased to $12.05 billion at June 30, 2025, compared to $12.09 billion at March 31, 2025, and increased 4% compared to $11.55 billion at June 30, 2024. The increase compared to the prior year quarter primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits were 89% of total deposits at both June 30, 2025 and March 31, 2025, compared to 88% at June 30, 2024. Certificates of deposit decreased to $1.48 billion at June 30, 2025, compared to $1.50 billion at March 31, 2025, and decreased 3% from $1.53 billion a year earlier. The decreases were principally due to decreases in brokered deposits.
FHLB advances were $565.0 million at June 30, 2025, compared to $168.0 million at March 31, 2025 and $398.0 million a year ago. The increase in FHLB advances were primarily used to fund loan growth. At June 30, 2025, off-balance sheet liquidity included additional borrowing capacity of $2.74 billion at the FHLB and $1.62 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million.
The balance of our outstanding subordinated debt was paid off during the second quarter of 2025. Subordinated notes, net of issuance costs, were $80.4 million at March 31, 2025, and $89.6 million at June 30, 2024.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 4
At June 30, 2025, total common shareholders’ equity was $1.87 billion or 11.35% of total assets, compared to $1.83 billion or 11.34% of total assets at March 31, 2025, and $1.69 billion or 10.69% of total assets at June 30, 2024. The increase at June 30, 2025 compared to March 31, 2025 was due to a $28.7 million increase in retained earnings resulting from $45.5 million in net income, partially offset by the accrual of $16.8 million of cash dividends during the second quarter of 2025. At June 30, 2025, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.49 billion, or 9.28% of tangible assets, compared to $1.46 billion, or 9.23% of tangible assets, at March 31, 2025, and $1.31 billion, or 8.51% 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, 2025, Banner’s estimated common equity Tier 1 capital ratio was 12.63%, its estimated Tier 1 leverage capital to average assets ratio was 11.29%, and its estimated total capital to risk-weighted assets ratio was 14.51%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.
Credit Quality
The allowance for credit losses - loans was $160.5 million, or 1.37% of total loans receivable and 373% of non-performing loans, at June 30, 2025, compared to $157.3 million, or 1.38% of total loans receivable and 404% of non-performing loans, at March 31, 2025, and $152.8 million, or 1.37% of total loans receivable and 498% of non-performing loans, at June 30, 2024. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $12.8 million at June 30, 2025, compared to $12.2 million at March 31, 2025, and $14.0 million at June 30, 2024. Net loan charge-offs totaled $1.0 million in the second quarter of 2025, compared to net loan charge-offs of $2.7 million and $245,000 in the in the preceding quarter and second quarter a year ago, respectively. Non-performing loans were $43.0 million at June 30, 2025, compared to $39.0 million at March 31, 2025, and $30.7 million a year ago. Substandard loans were $189.5 million as of June 30, 2025, compared to $197.8 million as of March 31, 2025 and $122.0 million a year ago. Total non-performing assets were $49.8 million, or 0.30% of total assets, at June 30, 2025, compared to $42.7 million, or 0.26% of total assets, at March 31, 2025, and $33.3 million, or 0.21% of total assets, a year ago.
Conference Call
Banner will host a conference call on Thursday, July 17, 2025, at 8:00 a.m. PDT, to discuss its second quarter results. Interested investors may listen to the call live at www.bannerbank.com. Investment professionals are invited to dial (833) 470-1428 using access code 859937 to participate in the call. A replay of the call will be available at www.bannerbank.com.
About the Company
Banner Corporation is a $16.44 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

BANR - Second Quarter 2025 Results
July 16, 2025
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 and the duration 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, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy 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 press 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 affecting pricing, market share 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, and cybersecurity; (13) vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; (14) market volatility or deterioration in capital markets affecting liquidity, valuations, or investor confidence; (15) the costs, effects and outcomes of litigation or other legal proceedings involving the Company; (16) legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; (17) climate-related risks and natural disasters, which may affect loan collateral, operations, or compliance obligations; (18) changes in accounting principles, policies or guidelines; (19) the impact of future acquisitions or business combinations, including related goodwill impairment risks and integration challenges; (20) effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; (21) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (22) other risks detailed from time to time in Banner’s other reports filed with and furnished to the Securities and Exchange Commission including Banner’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 6

RESULTS OF OPERATIONS |  | Quarters Ended |  | Six Months Ended
(in thousands except shares and per share data) |  | Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  | Jun 30, 2025 |  | Jun 30, 2024
INTEREST INCOME: |  |  |  |  |  |  |  |  |  |
Loans receivable |  | $ | 175,373 |  |  | $ | 168,677 |  |  | $ | 161,191 |  |  | $ | 344,050 |  |  | $ | 317,666 |
Mortgage-backed securities |  | 15,416 |  |  | 15,744 |  |  | 16,708 |  |  | 31,160 |  |  | 33,642 |
Securities and cash equivalents |  | 9,470 |  |  | 9,447 |  |  | 11,239 |  |  | 18,917 |  |  | 22,518 |
Total interest income |  | 200,259 |  |  | 193,868 |  |  | 189,138 |  |  | 394,127 |  |  | 373,826 |
INTEREST EXPENSE: |  |  |  |  |  |  |  |  |  |
Deposits |  | 49,316 |  |  | 48,737 |  |  | 48,850 |  |  | 98,053 |  |  | 93,463 |
Federal Home Loan Bank (FHLB) advances |  | 3,370 |  |  | 860 |  |  | 3,621 |  |  | 4,230 |  |  | 6,593 |
Other borrowings |  | 675 |  |  | 694 |  |  | 1,160 |  |  | 1,369 |  |  | 2,335 |
Subordinated debt |  | 2,499 |  |  | 2,494 |  |  | 2,961 |  |  | 4,993 |  |  | 5,930 |
Total interest expense |  | 55,860 |  |  | 52,785 |  |  | 56,592 |  |  | 108,645 |  |  | 108,321 |
Net interest income |  | 144,399 |  |  | 141,083 |  |  | 132,546 |  |  | 285,482 |  |  | 265,505 |
PROVISION FOR CREDIT LOSSES |  | 4,795 |  |  | 3,139 |  |  | 2,369 |  |  | 7,934 |  |  | 2,889 |
Net interest income after provision for credit losses |  | 139,604 |  |  | 137,944 |  |  | 130,177 |  |  | 277,548 |  |  | 262,616 |
NON-INTEREST INCOME: |  |  |  |  |  |  |  |  |  |
Deposit fees and other service charges |  | 10,835 |  |  | 10,769 |  |  | 10,590 |  |  | 21,604 |  |  | 21,612 |
Mortgage banking operations |  | 3,226 |  |  | 3,103 |  |  | 3,006 |  |  | 6,329 |  |  | 5,341 |
Bank-owned life insurance |  | 2,384 |  |  | 2,575 |  |  | 2,367 |  |  | 4,959 |  |  | 4,604 |
Miscellaneous |  | 1,221 |  |  | 2,346 |  |  | 1,988 |  |  | 3,567 |  |  | 3,880 |
|  | 17,666 |  |  | 18,793 |  |  | 17,951 |  |  | 36,459 |  |  | 35,437 |
Net loss on sale of securities |  | (3) |  |  | — |  |  | (562) |  |  | (3) |  |  | (5,465) |
Net change in valuation of financial instruments carried at fair value |  | 88 |  |  | 315 |  |  | (190) |  |  | 403 |  |  | (1,182) |
Total non-interest income |  | 17,751 |  |  | 19,108 |  |  | 17,199 |  |  | 36,859 |  |  | 28,790 |
NON-INTEREST EXPENSE: |  |  |  |  |  |  |  |  |  |
Salary and employee benefits |  | 65,486 |  |  | 64,857 |  |  | 63,831 |  |  | 130,343 |  |  | 126,200 |
Less capitalized loan origination costs |  | (4,924) |  |  | (3,330) |  |  | (4,639) |  |  | (8,254) |  |  | (8,315) |
Occupancy and equipment |  | 12,256 |  |  | 12,097 |  |  | 12,128 |  |  | 24,353 |  |  | 24,590 |
Information and computer data services |  | 8,199 |  |  | 7,628 |  |  | 7,240 |  |  | 15,827 |  |  | 14,560 |
Payment and card processing services |  | 5,899 |  |  | 5,750 |  |  | 5,691 |  |  | 11,649 |  |  | 11,401 |
Professional and legal expenses |  | 2,271 |  |  | 2,430 |  |  | 1,201 |  |  | 4,701 |  |  | 2,731 |
Advertising and marketing |  | 1,087 |  |  | 590 |  |  | 1,198 |  |  | 1,677 |  |  | 2,277 |
Deposit insurance |  | 2,800 |  |  | 2,797 |  |  | 2,858 |  |  | 5,597 |  |  | 5,667 |
State and municipal business and use taxes |  | 1,416 |  |  | 1,454 |  |  | 1,394 |  |  | 2,870 |  |  | 2,698 |
Real estate operations, net |  | 392 |  |  | (61) |  |  | 297 |  |  | 331 |  |  | 77 |
Amortization of core deposit intangibles |  | 455 |  |  | 456 |  |  | 724 |  |  | 911 |  |  | 1,447 |
Miscellaneous |  | 6,011 |  |  | 6,591 |  |  | 6,205 |  |  | 12,602 |  |  | 12,436 |
Total non-interest expense |  | 101,348 |  |  | 101,259 |  |  | 98,128 |  |  | 202,607 |  |  | 195,769 |
Income before provision for income taxes |  | 56,007 |  |  | 55,793 |  |  | 49,248 |  |  | 111,800 |  |  | 95,637 |
PROVISION FOR INCOME TAXES |  | 10,511 |  |  | 10,658 |  |  | 9,453 |  |  | 21,169 |  |  | 18,283 |
NET INCOME |  | $ | 45,496 |  |  | $ | 45,135 |  |  | $ | 39,795 |  |  | $ | 90,631 |  |  | $ | 77,354 |
Earnings per common share: |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1.31 |  |  | $ | 1.31 |  |  | $ | 1.15 |  |  | $ | 2.62 |  |  | $ | 2.25 |
Diluted |  | $ | 1.31 |  |  | $ | 1.30 |  |  | $ | 1.15 |  |  | $ | 2.61 |  |  | $ | 2.24 |
Cumulative dividends declared per common share |  | $ | 0.48 |  |  | $ | 0.48 |  |  | $ | 0.48 |  |  | $ | 0.96 |  |  | $ | 0.96 |
Weighted average number of common shares outstanding: |  |  |  |  |  |  |  |  |  |
Basic |  | 34,627,433 |  |  | 34,509,815 |  |  | 34,488,163 |  |  | 34,568,948 |  |  | 34,439,863 |
Diluted |  | 34,738,948 |  |  | 34,778,687 |  |  | 34,537,012 |  |  | 34,761,044 |  |  | 34,539,620 |
Increase in common shares outstanding |  | 94,022 |  |  | 30,140 |  |  | 60,531 |  |  | 124,162 |  |  | 107,383 |

BANR - Second Quarter 2025 Results
July 16, 2025
Page 7

FINANCIAL CONDITION |  |  |  |  |  |  |  |  |  | Percentage Change
(in thousands except shares and per share data) |  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024 |  | Prior Qtr |  | Prior Yr Qtr
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 239,339 |  |  | $ | 213,574 |  |  | $ | 203,402 |  |  | $ | 195,163 |  |  | 12 | % |  | 23 | %
Interest-bearing deposits |  | 244,009 |  |  | 228,371 |  |  | 298,456 |  |  | 52,295 |  |  | 7 | % |  | 367 | %
Total cash and cash equivalents |  | 483,348 |  |  | 441,945 |  |  | 501,858 |  |  | 247,458 |  |  | 9 | % |  | 95 | %
Securities - available for sale, amortized cost $2,372,331, $2,426,395, $2,460,262 and $2,572,544, respectively |  | 2,064,581 |  |  | 2,108,945 |  |  | 2,104,511 |  |  | 2,197,693 |  |  | (2) | % |  | (6) | %
Securities - held to maturity, fair value $801,838, $819,261, $825,528 and $852,709, respectively |  | 981,312 |  |  | 991,796 |  |  | 1,001,564 |  |  | 1,023,028 |  |  | (1) | % |  | (4) | %
Total securities |  | 3,045,893 |  |  | 3,100,741 |  |  | 3,106,075 |  |  | 3,220,721 |  |  | (2) | % |  | (5) | %
FHLB stock |  | 35,151 |  |  | 17,286 |  |  | 22,451 |  |  | 27,311 |  |  | 103 | % |  | 29 | %
Loans held for sale |  | 37,651 |  |  | 24,536 |  |  | 32,021 |  |  | 13,421 |  |  | 53 | % |  | 181 | %
Loans receivable |  | 11,690,373 |  |  | 11,438,796 |  |  | 11,354,656 |  |  | 11,143,848 |  |  | 2 | % |  | 5 | %
Allowance for credit losses – loans |  | (160,501) |  |  | (157,323) |  |  | (155,521) |  |  | (152,848) |  |  | 2 | % |  | 5 | %
Net loans receivable |  | 11,529,872 |  |  | 11,281,473 |  |  | 11,199,135 |  |  | 10,991,000 |  |  | 2 | % |  | 5 | %
Accrued interest receivable |  | 64,729 |  |  | 63,987 |  |  | 60,885 |  |  | 67,520 |  |  | 1 | % |  | (4) | %
Property and equipment, net |  | 117,175 |  |  | 119,649 |  |  | 124,589 |  |  | 126,465 |  |  | (2) | % |  | (7) | %
Goodwill |  | 373,121 |  |  | 373,121 |  |  | 373,121 |  |  | 373,121 |  |  | — | % |  | — | %
Other intangibles, net |  | 2,147 |  |  | 2,602 |  |  | 3,058 |  |  | 4,237 |  |  | (17) | % |  | (49) | %
Bank-owned life insurance |  | 316,365 |  |  | 313,942 |  |  | 312,549 |  |  | 307,948 |  |  | 1 | % |  | 3 | %
Operating lease right-of-use assets |  | 38,754 |  |  | 37,134 |  |  | 39,998 |  |  | 39,628 |  |  | 4 | % |  | (2) | %
Other assets |  | 392,963 |  |  | 394,396 |  |  | 424,297 |  |  | 397,364 |  |  | — | % |  | (1) | %
Total assets |  | $ | 16,437,169 |  |  | $ | 16,170,812 |  |  | $ | 16,200,037 |  |  | $ | 15,816,194 |  |  | 2 | % |  | 4 | %
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest-bearing |  | $ | 4,504,491 |  |  | $ | 4,571,598 |  |  | $ | 4,591,543 |  |  | $ | 4,537,803 |  |  | (1) | % |  | (1) | %
Interest-bearing transaction and savings accounts |  | 7,545,028 |  |  | 7,517,617 |  |  | 7,423,183 |  |  | 7,016,327 |  |  | — | % |  | 8 | %
Interest-bearing certificates |  | 1,477,772 |  |  | 1,504,050 |  |  | 1,499,672 |  |  | 1,525,133 |  |  | (2) | % |  | (3) | %
Total deposits |  | 13,527,291 |  |  | 13,593,265 |  |  | 13,514,398 |  |  | 13,079,263 |  |  | — | % |  | 3 | %
Advances from FHLB |  | 565,000 |  |  | 168,000 |  |  | 290,000 |  |  | 398,000 |  |  | 236 | % |  | 42 | %
Other borrowings |  | 117,112 |  |  | 130,588 |  |  | 125,257 |  |  | 165,956 |  |  | (10) | % |  | (29) | %
Subordinated notes, net |  | — |  |  | 80,389 |  |  | 80,278 |  |  | 89,561 |  |  | (100) | % |  | (100) | %
Junior subordinated debentures at fair value |  | 73,366 |  |  | 67,711 |  |  | 67,477 |  |  | 66,831 |  |  | 8 | % |  | 10 | %
Operating lease liabilities |  | 41,696 |  |  | 40,466 |  |  | 43,472 |  |  | 44,056 |  |  | 3 | % |  | (5) | %
Accrued expenses and other liabilities |  | 200,194 |  |  | 210,771 |  |  | 258,070 |  |  | 235,515 |  |  | (5) | % |  | (15) | %
Deferred compensation |  | 46,846 |  |  | 46,169 |  |  | 46,759 |  |  | 46,246 |  |  | 1 | % |  | 1 | %
Total liabilities |  | 14,571,505 |  |  | 14,337,359 |  |  | 14,425,711 |  |  | 14,125,428 |  |  | 2 | % |  | 3 | %
SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | 1,309,004 |  |  | 1,308,967 |  |  | 1,307,509 |  |  | 1,302,236 |  |  | — | % |  | 1 | %
Retained earnings |  | 801,082 |  |  | 772,412 |  |  | 744,091 |  |  | 686,079 |  |  | 4 | % |  | 17 | %
Accumulated other comprehensive loss |  | (244,422) |  |  | (247,926) |  |  | (277,274) |  |  | (297,549) |  |  | (1) | % |  | (18) | %
Total shareholders’ equity |  | 1,865,664 |  |  | 1,833,453 |  |  | 1,774,326 |  |  | 1,690,766 |  |  | 2 | % |  | 10 | %
Total liabilities and shareholders’ equity |  | $ | 16,437,169 |  |  | $ | 16,170,812 |  |  | $ | 16,200,037 |  |  | $ | 15,816,194 |  |  | 2 | % |  | 4 | %
Common Shares Issued: |  |  |  |  |  |  |  |  |  |  |  |
Shares outstanding at end of period |  | 34,583,994 |  |  | 34,489,972 |  |  | 34,459,832 |  |  | 34,455,752 |  |  |  |  |
Common shareholders’ equity per share (1) |  | $ | 53.95 |  |  | $ | 53.16 |  |  | $ | 51.49 |  |  | $ | 49.07 |  |  |  |  |
Common shareholders’ tangible equity per share (1) (2) |  | $ | 43.09 |  |  | $ | 42.27 |  |  | $ | 40.57 |  |  | $ | 38.12 |  |  |  |  |
Common shareholders’ equity to total assets |  | 11.35 | % |  | 11.34 | % |  | 10.95 | % |  | 10.69 | % |  |  |  |
Common shareholders’ tangible equity to tangible assets (2) |  | 9.28 | % |  | 9.23 | % |  | 8.84 | % |  | 8.51 | % |  |  |  |
Consolidated Tier 1 leverage capital ratio |  | 11.29 | % |  | 11.22 | % |  | 11.05 | % |  | 10.80 | % |  |  |  |

(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 2025 Results
July 16, 2025
Page 8

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
LOANS |  |  |  |  |  |  |  |  |  | Percentage Change
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024 |  | Prior Qtr |  | Prior Yr Qtr
Commercial real estate (CRE): |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 1,125,249 |  |  | $ | 1,020,829 |  |  | $ | 1,027,426 |  |  | $ | 950,922 |  |  | 10 | % |  | 18 | %
Investment properties |  | 1,625,001 |  |  | 1,598,387 |  |  | 1,623,672 |  |  | 1,536,142 |  |  | 2 | % |  | 6 | %
Small balance CRE |  | 1,223,477 |  |  | 1,217,458 |  |  | 1,213,792 |  |  | 1,234,302 |  |  | — | % |  | (1) | %
Multifamily real estate |  | 860,700 |  |  | 877,716 |  |  | 894,425 |  |  | 717,089 |  |  | (2) | % |  | 20 | %
Construction, land and land development: |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  | 159,222 |  |  | 146,467 |  |  | 122,362 |  |  | 173,296 |  |  | 9 | % |  | (8) | %
Multifamily construction |  | 568,058 |  |  | 618,942 |  |  | 513,706 |  |  | 663,989 |  |  | (8) | % |  | (14) | %
One- to four-family construction |  | 551,806 |  |  | 504,265 |  |  | 514,220 |  |  | 490,237 |  |  | 9 | % |  | 13 | %
Land and land development |  | 417,474 |  |  | 396,009 |  |  | 369,663 |  |  | 352,184 |  |  | 5 | % |  | 19 | %
Commercial business: |  |  |  |  |  |  |  |  |  |  |  |
Commercial business |  | 1,318,483 |  |  | 1,283,754 |  |  | 1,318,333 |  |  | 1,298,134 |  |  | 3 | % |  | 2 | %
Small business scored |  | 1,152,531 |  |  | 1,122,550 |  |  | 1,104,117 |  |  | 1,074,465 |  |  | 3 | % |  | 7 | %
Agricultural business, including secured by farmland: |  |  |  |  |  |  |  |  |  |  |  |
Agricultural business, including secured by farmland |  | 345,742 |  |  | 334,899 |  |  | 340,280 |  |  | 334,583 |  |  | 3 | % |  | 3 | %
One- to four-family residential |  | 1,610,133 |  |  | 1,600,283 |  |  | 1,591,260 |  |  | 1,603,266 |  |  | 1 | % |  | — | %
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Consumer—home equity revolving lines of credit |  | 639,757 |  |  | 620,483 |  |  | 625,680 |  |  | 611,739 |  |  | 3 | % |  | 5 | %
Consumer—other |  | 92,740 |  |  | 96,754 |  |  | 95,720 |  |  | 103,500 |  |  | (4) | % |  | (10) | %
Total loans receivable |  | $ | 11,690,373 |  |  | $ | 11,438,796 |  |  | $ | 11,354,656 |  |  | $ | 11,143,848 |  |  | 2 | % |  | 5 | %
Loans 30 - 89 days past due and on accrual |  | $ | 10,786 |  |  | $ | 37,339 |  |  | $ | 26,824 |  |  | $ | 11,850 |  |  |  |  |
Total delinquent loans (including loans on non-accrual), net |  | $ | 47,764 |  |  | $ | 71,927 |  |  | $ | 55,432 |  |  | $ | 32,081 |  |  |  |  |
Total delinquent loans / Total loans receivable |  | 0.41 | % |  | 0.63 | % |  | 0.49 | % |  | 0.29 | % |  |  |  |

LOANS BY GEOGRAPHIC LOCATION |  |  |  |  |  |  |  |  |  |  |  | Percentage Change
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024 |  | Prior Qtr |  | Prior Yr Qtr
|  | Amount |  | Percentage |  | Amount |  | Amount |  | Amount |  |  |  |
Washington |  | $ | 5,438,285 |  |  | 47 | % |  | $ | 5,260,906 |  |  | $ | 5,245,886 |  |  | $ | 5,182,378 |  |  | 3 | % |  | 5 | %
California |  | 3,010,678 |  |  | 26 | % |  | 2,927,835 |  |  | 2,861,435 |  |  | 2,787,190 |  |  | 3 | % |  | 8 | %
Oregon |  | 2,141,185 |  |  | 17 | % |  | 2,122,953 |  |  | 2,113,229 |  |  | 2,072,153 |  |  | 1 | % |  | 3 | %
Idaho |  | 671,217 |  |  | 6 | % |  | 665,625 |  |  | 665,158 |  |  | 641,209 |  |  | 1 | % |  | 5 | %
Utah |  | 70,474 |  |  | 1 | % |  | 88,858 |  |  | 82,459 |  |  | 80,295 |  |  | (21) | % |  | (12) | %
Other |  | 358,534 |  |  | 3 | % |  | 372,619 |  |  | 386,489 |  |  | 380,623 |  |  | (4) | % |  | (6) | %
Total loans receivable |  | $ | 11,690,373 |  |  | 100 | % |  | $ | 11,438,796 |  |  | $ | 11,354,656 |  |  | $ | 11,143,848 |  |  | 2 | % |  | 5 | %

BANR - Second Quarter 2025 Results
July 16, 2025
Page 9
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

LOAN ORIGINATIONS | Quarters Ended |  |
| Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  |  |  |
Commercial real estate | $ | 216,189 |  |  | $ | 37,041 |  |  | $ | 102,258 |  |  |  |  |
Multifamily real estate | 13,065 |  |  | 9,555 |  |  | 2,774 |  |  |  |  |
Construction and land | 411,210 |  |  | 287,565 |  |  | 546,675 |  |  |  |  |
Commercial business | 203,656 |  |  | 103,739 |  |  | 167,168 |  |  |  |  |
Agricultural business | 14,414 |  |  | 12,765 |  |  | 22,255 |  |  |  |  |
One-to four-family residential | 5,491 |  |  | 5,139 |  |  | 34,498 |  |  |  |  |
Consumer | 102,600 |  |  | 80,030 |  |  | 120,470 |  |  |  |  |
Total loan originations (excluding loans held for sale) | $ | 966,625 |  |  | $ | 535,834 |  |  | $ | 996,098 |  |  |  |  |

BANR - Second Quarter 2025 Results
July 16, 2025
Page 10

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS |  | Quarters Ended |  |
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  |  |  |
Balance, beginning of period |  | $ | 157,323 |  |  | $ | 155,521 |  |  | $ | 151,140 |  |  |  |  |
Provision for credit losses – loans |  | 4,201 |  |  | 4,549 |  |  | 1,953 |  |  |  |  |
Recoveries of loans previously charged off: |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | 53 |  |  | 57 |  |  | 98 |  |  |  |  |
One- to four-family real estate |  | 58 |  |  | 188 |  |  | 17 |  |  |  |  |
Commercial business |  | 361 |  |  | 557 |  |  | 324 |  |  |  |  |
Agricultural business, including secured by farmland |  | 1 |  |  | 10 |  |  | 195 |  |  |  |  |
Consumer |  | 168 |  |  | 119 |  |  | 112 |  |  |  |  |
|  | 641 |  |  | 931 |  |  | 746 |  |  |  |  |
Loans charged off: |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | — |  |  | — |  |  | (347) |  |  |  |  |
Construction and land |  | — |  |  | — |  |  | — |  |  |  |  |
One- to four-family real estate |  | — |  |  | (13) |  |  | — |  |  |  |  |
Commercial business |  | (892) |  |  | (3,301) |  |  | (137) |  |  |  |  |
Agricultural business, including secured by farmland |  | (362) |  |  | — |  |  | — |  |  |  |  |
Consumer |  | (410) |  |  | (364) |  |  | (507) |  |  |  |  |
|  | (1,664) |  |  | (3,678) |  |  | (991) |  |  |  |  |
Net charge-offs |  | (1,023) |  |  | (2,747) |  |  | (245) |  |  |  |  |
Balance, end of period |  | $ | 160,501 |  |  | $ | 157,323 |  |  | $ | 152,848 |  |  |  |  |
Net (charge-offs) recoveries / Average loans receivable |  | (0.009) | % |  | (0.024) | % |  | (0.002) | % |  |  |  |

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS |  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024
Commercial real estate |  | $ | 41,036 |  |  | $ | 40,076 |  |  | $ | 40,830 |  |  | $ | 39,064 |
Multifamily real estate |  | 9,918 |  |  | 10,109 |  |  | 10,308 |  |  | 8,253 |
Construction and land |  | 34,124 |  |  | 32,042 |  |  | 29,038 |  |  | 31,597 |
One- to four-family real estate |  | 20,917 |  |  | 20,752 |  |  | 20,807 |  |  | 20,906 |
Commercial business |  | 38,591 |  |  | 38,665 |  |  | 38,611 |  |  | 38,835 |
Agricultural business, including secured by farmland |  | 6,216 |  |  | 5,641 |  |  | 5,727 |  |  | 4,045 |
Consumer |  | 9,699 |  |  | 10,038 |  |  | 10,200 |  |  | 10,148 |
Total allowance for credit losses – loans |  | $ | 160,501 |  |  | $ | 157,323 |  |  | $ | 155,521 |  |  | $ | 152,848 |
Allowance for credit losses - loans / Total loans receivable |  | 1.37 | % |  | 1.38 | % |  | 1.37 | % |  | 1.37 | %
Allowance for credit losses - loans / Non-performing loans |  | 373 | % |  | 404 | % |  | 421 | % |  | 498 | %

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS |  | Quarters Ended |  |
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  |  |  |
Balance, beginning of period |  | $ | 12,162 |  |  | $ | 13,562 |  |  | $ | 13,597 |  |  |  |  |
Provision (recapture) for credit losses - unfunded loan commitments |  | 588 |  |  | (1,400) |  |  | 430 |  |  |  |  |
Balance, end of period |  | $ | 12,750 |  |  | $ | 12,162 |  |  | $ | 14,027 |  |  |  |  |

BANR - Second Quarter 2025 Results
July 16, 2025
Page 11

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |
NON-PERFORMING ASSETS | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024
Loans on non-accrual status: |  |  |  |  |  |  |
Secured by real estate: |  |  |  |  |  |  |
Commercial | $ | 10 |  |  | $ | 2,182 |  |  | $ | 2,186 |  |  | $ | 2,326 |
Construction and land | 4,369 |  |  | 4,359 |  |  | 3,963 |  |  | 3,999 |
One- to four-family | 15,480 |  |  | 10,448 |  |  | 10,016 |  |  | 8,184 |
Commercial business | 6,647 |  |  | 6,425 |  |  | 7,067 |  |  | 8,694 |
Agricultural business, including secured by farmland | 8,690 |  |  | 10,301 |  |  | 8,485 |  |  | 1,586 |
Consumer | 4,802 |  |  | 4,874 |  |  | 4,835 |  |  | 3,380 |
| 39,998 |  |  | 38,589 |  |  | 36,552 |  |  | 28,169 |
Loans more than 90 days delinquent, still on accrual: |  |  |  |  |  |  |
Secured by real estate: |  |  |  |  |  |  |
One- to four-family | 2,896 |  |  | 9 |  |  | 369 |  |  | 1,861 |
Commercial business | — |  |  | 206 |  |  | — |  |  | — |
Consumer | 80 |  |  | 155 |  |  | 35 |  |  | 692 |
| 2,976 |  |  | 370 |  |  | 404 |  |  | 2,553 |
Total non-performing loans | 42,974 |  |  | 38,959 |  |  | 36,956 |  |  | 30,722 |
REO | 6,801 |  |  | 3,468 |  |  | 2,367 |  |  | 2,564 |
Other repossessed assets | — |  |  | 300 |  |  | 300 |  |  | — |
Total non-performing assets | $ | 49,775 |  |  | $ | 42,727 |  |  | $ | 39,623 |  |  | $ | 33,286 |
Total non-performing assets to total assets | 0.30 | % |  | 0.26 | % |  | 0.24 | % |  | 0.21 | %

LOANS BY CREDIT RISK RATING | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024
Pass | $ | 11,432,456 |  |  | $ | 11,207,852 |  |  | $ | 11,118,744 |  |  | $ | 10,971,850 |
Special Mention | 68,372 |  |  | 33,133 |  |  | 43,451 |  |  | 50,027 |
Substandard | 189,545 |  |  | 197,811 |  |  | 192,461 |  |  | 121,971 |
Total | $ | 11,690,373 |  |  | $ | 11,438,796 |  |  | $ | 11,354,656 |  |  | $ | 11,143,848 |

BANR - Second Quarter 2025 Results
July 16, 2025
Page 12

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
DEPOSIT COMPOSITION |  |  |  |  |  |  |  |  |  | Percentage Change
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024 |  | Prior Qtr |  | Prior Yr Qtr
Non-interest-bearing |  | $ | 4,504,491 |  |  | $ | 4,571,598 |  |  | $ | 4,591,543 |  |  | $ | 4,537,803 |  |  | (1) | % |  | (1) | %
Interest-bearing checking |  | 2,534,900 |  |  | 2,431,279 |  |  | 2,393,864 |  |  | 2,208,742 |  |  | 4 | % |  | 15 | %
Regular savings accounts |  | 3,538,372 |  |  | 3,542,005 |  |  | 3,478,423 |  |  | 3,192,036 |  |  | — | % |  | 11 | %
Money market accounts |  | 1,471,756 |  |  | 1,544,333 |  |  | 1,550,896 |  |  | 1,615,549 |  |  | (5) | % |  | (9) | %
Total interest-bearing transaction and savings accounts |  | 7,545,028 |  |  | 7,517,617 |  |  | 7,423,183 |  |  | 7,016,327 |  |  | — | % |  | 8 | %
Total core deposits |  | 12,049,519 |  |  | 12,089,215 |  |  | 12,014,726 |  |  | 11,554,130 |  |  | — | % |  | 4 | %
Interest-bearing certificates |  | 1,477,772 |  |  | 1,504,050 |  |  | 1,499,672 |  |  | 1,525,133 |  |  | (2) | % |  | (3) | %
Total deposits |  | $ | 13,527,291 |  |  | $ | 13,593,265 |  |  | $ | 13,514,398 |  |  | $ | 13,079,263 |  |  | — | % |  | 3 | %

GEOGRAPHIC CONCENTRATION OF DEPOSITS |  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024 |  | Percentage Change
|  | Amount |  | Percentage |  | Amount |  | Amount |  | Amount |  | Prior Qtr |  | Prior Yr Qtr
Washington |  | $ | 7,334,391 |  |  | 55 | % |  | $ | 7,394,201 |  |  | $ | 7,441,413 |  |  | $ | 7,171,699 |  |  | (1) | % |  | 2 | %
Oregon |  | 3,029,712 |  |  | 22 | % |  | 3,045,078 |  |  | 2,981,327 |  |  | 2,909,838 |  |  | (1) | % |  | 4 | %
California |  | 2,486,514 |  |  | 18 | % |  | 2,463,012 |  |  | 2,392,573 |  |  | 2,331,793 |  |  | 1 | % |  | 7 | %
Idaho |  | 676,674 |  |  | 5 | % |  | 690,974 |  |  | 699,085 |  |  | 665,933 |  |  | (2) | % |  | 2 | %
Total deposits |  | $ | 13,527,291 |  |  | 100 | % |  | $ | 13,593,265 |  |  | $ | 13,514,398 |  |  | $ | 13,079,263 |  |  | — | % |  | 3 | %

INCLUDED IN TOTAL DEPOSITS |  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024
Public non-interest-bearing accounts |  | $ | 151,484 |  |  | $ | 146,390 |  |  | $ | 165,667 |  |  | $ | 149,012 |
Public interest-bearing transaction & savings accounts |  | 250,350 |  |  | 239,707 |  |  | 248,746 |  |  | 250,136 |
Public interest-bearing certificates |  | 21,272 |  |  | 24,226 |  |  | 25,423 |  |  | 29,101 |
Total public deposits |  | $ | 423,106 |  |  | $ | 410,323 |  |  | $ | 439,836 |  |  | $ | 428,249 |
Collateralized public deposits |  | $ | 329,416 |  |  | $ | 313,445 |  |  | $ | 336,376 |  |  | $ | 326,524 |
Total brokered deposits |  | $ | 49,977 |  |  | $ | 75,321 |  |  | $ | 50,346 |  |  | $ | 105,309 |
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT |  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024
Number of deposit accounts |  | 451,185 |  |  | 453,808 |  |  | 460,004 |  |  | 460,107 |
Average account balance per account |  | $ | 30 |  |  | $ | 30 |  |  | $ | 30 |  |  | $ | 29 |

BANR - Second Quarter 2025 Results
July 16, 2025
Page 13

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
ESTIMATED REGULATORY CAPITAL RATIOS AS OF JUNE 30, 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 |  | $ | 1,984,862 |  |  | 14.51 | % |  | $ | 1,094,505 |  |  | 8.00 | % |  | $ | 1,368,131 |  |  | 10.00 | %
Tier 1 capital to risk-weighted assets |  | 1,813,814 |  |  | 13.26 | % |  | 820,879 |  |  | 6.00 | % |  | 820,879 |  |  | 6.00 | %
Tier 1 leverage capital to average assets |  | 1,813,814 |  |  | 11.29 | % |  | 642,519 |  |  | 4.00 | % |  | n/a |  | n/a
Common equity tier 1 capital to risk-weighted assets |  | 1,727,314 |  |  | 12.63 | % |  | 615,659 |  |  | 4.50 | % |  | n/a |  | n/a
Banner Bank: |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets |  | 1,909,529 |  |  | 13.96 | % |  | 1,094,267 |  |  | 8.00 | % |  | 1,367,834 |  |  | 10.00 | %
Tier 1 capital to risk-weighted assets |  | 1,738,518 |  |  | 12.71 | % |  | 820,700 |  |  | 6.00 | % |  | 1,094,267 |  |  | 8.00 | %
Tier 1 leverage capital to average assets |  | 1,738,518 |  |  | 10.81 | % |  | 643,174 |  |  | 4.00 | % |  | 803,968 |  |  | 5.00 | %
Common equity tier 1 capital to risk-weighted assets |  | 1,738,518 |  |  | 12.71 | % |  | 615,525 |  |  | 4.50 | % |  | 889,092 |  |  | 6.50 | %

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

BANR - Second Quarter 2025 Results
July 16, 2025
Page 14

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(rates / ratios annualized) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ANALYSIS OF NET INTEREST SPREAD | Quarters Ended
| Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 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 | $ | 29,936 |  |  | $ | 503 |  |  | 6.74 | % |  | $ | 22,457 |  |  | $ | 357 |  |  | 6.45 | % |  | $ | 11,665 |  |  | $ | 206 |  |  | 7.10 | %
Mortgage loans | 9,565,357 |  |  | 143,909 |  |  | 6.03 | % |  | 9,366,213 |  |  | 137,724 |  |  | 5.96 | % |  | 9,006,857 |  |  | 129,230 |  |  | 5.77 | %
Commercial/agricultural loans | 1,924,092 |  |  | 31,196 |  |  | 6.50 | % |  | 1,907,212 |  |  | 30,752 |  |  | 6.54 | % |  | 1,874,039 |  |  | 31,761 |  |  | 6.82 | %
Consumer and other loans | 121,142 |  |  | 2,087 |  |  | 6.91 | % |  | 121,492 |  |  | 2,092 |  |  | 6.98 | % |  | 132,661 |  |  | 2,156 |  |  | 6.54 | %
Total loans (1) | 11,640,527 |  |  | 177,695 |  |  | 6.12 | % |  | 11,417,374 |  |  | 170,925 |  |  | 6.07 | % |  | 11,025,222 |  |  | 163,353 |  |  | 5.96 | %
Mortgage-backed securities | 2,496,972 |  |  | 15,576 |  |  | 2.50 | % |  | 2,542,983 |  |  | 15,895 |  |  | 2.53 | % |  | 2,672,187 |  |  | 16,850 |  |  | 2.54 | %
Other securities | 893,062 |  |  | 9,561 |  |  | 4.29 | % |  | 902,732 |  |  | 9,687 |  |  | 4.35 | % |  | 958,809 |  |  | 11,181 |  |  | 4.69 | %
Interest-bearing deposits with banks | 75,539 |  |  | 577 |  |  | 3.06 | % |  | 65,758 |  |  | 484 |  |  | 2.99 | % |  | 58,022 |  |  | 578 |  |  | 4.01 | %
FHLB stock | 23,077 |  |  | 222 |  |  | 3.86 | % |  | 12,804 |  |  | 149 |  |  | 4.72 | % |  | 21,080 |  |  | 365 |  |  | 6.96 | %
Total investment securities | 3,488,650 |  |  | 25,936 |  |  | 2.98 | % |  | 3,524,277 |  |  | 26,215 |  |  | 3.02 | % |  | 3,710,098 |  |  | 28,974 |  |  | 3.14 | %
Total interest-earning assets | 15,129,177 |  |  | 203,631 |  |  | 5.40 | % |  | 14,941,651 |  |  | 197,140 |  |  | 5.35 | % |  | 14,735,320 |  |  | 192,327 |  |  | 5.25 | %
Non-interest-earning assets | 994,003 |  |  |  |  |  |  | 1,006,497 |  |  |  |  |  |  | 926,411 |  |  |  |  |
Total assets | $ | 16,123,180 |  |  |  |  |  |  | $ | 15,948,148 |  |  |  |  |  |  | $ | 15,661,731 |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing checking accounts | $ | 2,465,015 |  |  | 9,462 |  |  | 1.54 | % |  | $ | 2,381,106 |  |  | 8,537 |  |  | 1.45 | % |  | $ | 2,156,214 |  |  | 7,621 |  |  | 1.42 | %
Savings accounts | 3,493,965 |  |  | 18,837 |  |  | 2.16 | % |  | 3,450,908 |  |  | 18,103 |  |  | 2.13 | % |  | 3,147,522 |  |  | 17,200 |  |  | 2.20 | %
Money market accounts | 1,492,229 |  |  | 7,729 |  |  | 2.08 | % |  | 1,555,262 |  |  | 7,860 |  |  | 2.05 | % |  | 1,659,327 |  |  | 9,124 |  |  | 2.21 | %
Certificates of deposit | 1,489,611 |  |  | 13,288 |  |  | 3.58 | % |  | 1,531,428 |  |  | 14,237 |  |  | 3.77 | % |  | 1,503,597 |  |  | 14,905 |  |  | 3.99 | %
Total interest-bearing deposits | 8,940,820 |  |  | 49,316 |  |  | 2.21 | % |  | 8,918,704 |  |  | 48,737 |  |  | 2.22 | % |  | 8,466,660 |  |  | 48,850 |  |  | 2.32 | %
Non-interest-bearing deposits | 4,480,579 |  |  | — |  |  | — | % |  | 4,526,596 |  |  | — |  |  | — | % |  | 4,634,738 |  |  | — |  |  | — | %
Total deposits | 13,421,399 |  |  | 49,316 |  |  | 1.47 | % |  | 13,445,300 |  |  | 48,737 |  |  | 1.47 | % |  | 13,101,398 |  |  | 48,850 |  |  | 1.50 | %
Other interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLB advances | 296,671 |  |  | 3,370 |  |  | 4.56 | % |  | 75,300 |  |  | 860 |  |  | 4.63 | % |  | 259,549 |  |  | 3,621 |  |  | 5.61 | %
Other borrowings | 122,227 |  |  | 675 |  |  | 2.22 | % |  | 134,761 |  |  | 694 |  |  | 2.09 | % |  | 175,518 |  |  | 1,160 |  |  | 2.66 | %
Junior subordinated debentures and subordinated notes | 168,793 |  |  | 2,499 |  |  | 5.94 | % |  | 169,678 |  |  | 2,494 |  |  | 5.96 | % |  | 179,178 |  |  | 2,961 |  |  | 6.65 | %
Total borrowings | 587,691 |  |  | 6,544 |  |  | 4.47 | % |  | 379,739 |  |  | 4,048 |  |  | 4.32 | % |  | 614,245 |  |  | 7,742 |  |  | 5.07 | %
Total funding liabilities | 14,009,090 |  |  | 55,860 |  |  | 1.60 | % |  | 13,825,039 |  |  | 52,785 |  |  | 1.55 | % |  | 13,715,643 |  |  | 56,592 |  |  | 1.66 | %
Other non-interest-bearing liabilities (2) | 274,407 |  |  |  |  |  |  | 324,031 |  |  |  |  |  |  | 294,794 |  |  |  |  |
Total liabilities | 14,283,497 |  |  |  |  |  |  | 14,149,070 |  |  |  |  |  |  | 14,010,437 |  |  |  |  |
Shareholders’ equity | 1,839,683 |  |  |  |  |  |  | 1,799,078 |  |  |  |  |  |  | 1,651,294 |  |  |  |  |
Total liabilities and shareholders’ equity | $ | 16,123,180 |  |  |  |  |  |  | $ | 15,948,148 |  |  |  |  |  |  | $ | 15,661,731 |  |  |  |  |
Net interest income/rate spread (tax equivalent) |  |  | $ | 147,771 |  |  | 3.80 | % |  |  |  | $ | 144,355 |  |  | 3.80 | % |  |  |  | $ | 135,735 |  |  | 3.59 | %
Net interest margin (tax equivalent) |  |  |  |  | 3.92 | % |  |  |  |  |  | 3.92 | % |  |  |  |  |  | 3.70 | %
Reconciliation to reported net interest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjustments for taxable equivalent basis |  |  | (3,372) |  |  |  |  |  |  | (3,272) |  |  |  |  |  |  | (3,189) |  |  |
Net interest income and margin, as reported |  |  | $ | 144,399 |  |  | 3.83 | % |  |  |  | $ | 141,083 |  |  | 3.83 | % |  |  |  | $ | 132,546 |  |  | 3.62 | %
Additional Key Financial Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  |  |  | 1.13 | % |  |  |  |  |  | 1.15 | % |  |  |  |  |  | 1.02 | %
Adjusted return on average assets (4) |  |  |  |  | 1.16 | % |  |  |  |  |  | 1.14 | % |  |  |  |  |  | 1.04 | %
Return on average equity |  |  |  |  | 9.92 | % |  |  |  |  |  | 10.17 | % |  |  |  |  |  | 9.69 | %
Adjusted return on average equity (4) |  |  |  |  | 10.20 | % |  |  |  |  |  | 10.12 | % |  |  |  |  |  | 9.83 | %
Average equity/average assets |  |  |  |  | 11.41 | % |  |  |  |  |  | 11.28 | % |  |  |  |  |  | 10.54 | %
Average interest-earning assets/average interest-bearing liabilities |  |  |  |  | 158.78 | % |  |  |  |  |  | 160.69 | % |  |  |  |  |  | 162.27 | %
Average interest-earning assets/average funding liabilities |  |  |  |  | 108.00 | % |  |  |  |  |  | 108.08 | % |  |  |  |  |  | 107.43 | %
Non-interest income/average assets |  |  |  |  | 0.44 | % |  |  |  |  |  | 0.49 | % |  |  |  |  |  | 0.44 | %
Non-interest expense/average assets |  |  |  |  | 2.52 | % |  |  |  |  |  | 2.57 | % |  |  |  |  |  | 2.52 | %
Efficiency ratio |  |  |  |  | 62.50 | % |  |  |  |  |  | 63.21 | % |  |  |  |  |  | 65.53 | %
Adjusted efficiency ratio (4) |  |  |  |  | 60.28 | % |  |  |  |  |  | 62.18 | % |  |  |  |  |  | 63.60 | %

(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 $2.3 million for the quarter ended June 30, 2025 and $2.2 million for both the quarters ended March 31, 2025 and June 30, 2024. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for the quarter ended June 30, 2025 and $1.0 million for both the quarters ended March 31, 2025 and June 30, 2024.
(4)Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 15

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |
(rates / ratios annualized) |  |  |  |  |  |  |  |  |  |  |
ANALYSIS OF NET INTEREST SPREAD | Six Months Ended
| Jun 30, 2025 |  | Jun 30, 2024
| Average Balance |  | Interest and Dividends |  | Yield/Cost (3) |  | Average Balance |  | Interest and Dividends |  | Yield/Cost (3)
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |
Held for sale loans | $ | 26,217 |  |  | $ | 860 |  |  | 6.61 | % |  | $ | 10,802 |  |  | $ | 373 |  |  | 6.94 | %
Mortgage loans | 9,466,335 |  |  | 281,633 |  |  | 6.00 | % |  | 8,949,709 |  |  | 254,514 |  |  | 5.72 | %
Commercial/agricultural loans | 1,915,699 |  |  | 61,948 |  |  | 6.52 | % |  | 1,852,067 |  |  | 62,608 |  |  | 6.80 | %
Consumer and other loans | 121,316 |  |  | 4,179 |  |  | 6.95 | % |  | 133,258 |  |  | 4,352 |  |  | 6.57 | %
Total loans (1) | 11,529,567 |  |  | 348,620 |  |  | 6.10 | % |  | 10,945,836 |  |  | 321,847 |  |  | 5.91 | %
Mortgage-backed securities | 2,519,851 |  |  | 31,471 |  |  | 2.52 | % |  | 2,700,413 |  |  | 33,926 |  |  | 2.53 | %
Other securities | 897,870 |  |  | 19,248 |  |  | 4.32 | % |  | 971,724 |  |  | 22,682 |  |  | 4.69 | %
Interest-bearing deposits with banks | 70,675 |  |  | 1,061 |  |  | 3.03 | % |  | 51,643 |  |  | 1,037 |  |  | 4.04 | %
FHLB stock | 17,969 |  |  | 371 |  |  | 4.16 | % |  | 20,077 |  |  | 574 |  |  | 5.75 | %
Total investment securities | 3,506,365 |  |  | 52,151 |  |  | 3.00 | % |  | 3,743,857 |  |  | 58,219 |  |  | 3.13 | %
Total interest-earning assets | 15,035,932 |  |  | 400,771 |  |  | 5.38 | % |  | 14,689,693 |  |  | 380,066 |  |  | 5.20 | %
Non-interest-earning assets | 1,000,216 |  |  |  |  |  |  | 935,068 |  |  |  |  |
Total assets | $ | 16,036,148 |  |  |  |  |  |  | $ | 15,624,761 |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing checking accounts | $ | 2,423,292 |  |  | 17,999 |  |  | 1.50 | % |  | $ | 2,130,228 |  |  | 14,337 |  |  | 1.35 | %
Savings accounts | 3,472,556 |  |  | 36,940 |  |  | 2.15 | % |  | 3,106,985 |  |  | 32,479 |  |  | 2.10 | %
Money market accounts | 1,523,571 |  |  | 15,589 |  |  | 2.06 | % |  | 1,666,743 |  |  | 17,512 |  |  | 2.11 | %
Certificates of deposit | 1,510,404 |  |  | 27,525 |  |  | 3.67 | % |  | 1,502,013 |  |  | 29,135 |  |  | 3.90 | %
Total interest-bearing deposits | 8,929,823 |  |  | 98,053 |  |  | 2.21 | % |  | 8,405,969 |  |  | 93,463 |  |  | 2.24 | %
Non-interest-bearing deposits | 4,503,461 |  |  | — |  |  | — | % |  | 4,673,330 |  |  | — |  |  | — | %
Total deposits | 13,433,284 |  |  | 98,053 |  |  | 1.47 | % |  | 13,079,299 |  |  | 93,463 |  |  | 1.44 | %
Other interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
FHLB advances | 186,597 |  |  | 4,230 |  |  | 4.57 | % |  | 236,269 |  |  | 6,593 |  |  | 5.61 | %
Other borrowings | 128,459 |  |  | 1,369 |  |  | 2.15 | % |  | 178,105 |  |  | 2,335 |  |  | 2.64 | %
Junior subordinated debentures and subordinated notes | 169,233 |  |  | 4,993 |  |  | 5.95 | % |  | 180,379 |  |  | 5,930 |  |  | 6.61 | %
Total borrowings | 484,289 |  |  | 10,592 |  |  | 4.41 | % |  | 594,753 |  |  | 14,858 |  |  | 5.02 | %
Total funding liabilities | 13,917,573 |  |  | 108,645 |  |  | 1.57 | % |  | 13,674,052 |  |  | 108,321 |  |  | 1.59 | %
Other non-interest-bearing liabilities (2) | 299,082 |  |  |  |  |  |  | 299,103 |  |  |  |  |
Total liabilities | 14,216,655 |  |  |  |  |  |  | 13,973,155 |  |  |  |  |
Shareholders’ equity | 1,819,493 |  |  |  |  |  |  | 1,651,606 |  |  |  |  |
Total liabilities and shareholders’ equity | $ | 16,036,148 |  |  |  |  |  |  | $ | 15,624,761 |  |  |  |  |
Net interest income/rate spread (tax equivalent) |  |  | $ | 292,126 |  |  | 3.81 | % |  |  |  | $ | 271,745 |  |  | 3.61 | %
Net interest margin (tax equivalent) |  |  |  |  | 3.92 | % |  |  |  |  |  | 3.72 | %
Reconciliation to reported net interest income: |  |  |  |  |  |  |  |  |  |  |
Adjustments for taxable equivalent basis |  |  | (6,644) |  |  |  |  |  |  | (6,240) |  |  |
Net interest income and margin, as reported |  |  | $ | 285,482 |  |  | 3.83 | % |  |  |  | $ | 265,505 |  |  | 3.63 | %
Additional Key Financial Ratios: |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  |  |  | 1.14 | % |  |  |  |  |  | 1.00 | %
Adjusted return on average assets (4) |  |  |  |  | 1.15 | % |  |  |  |  |  | 1.06 | %
Return on average equity |  |  |  |  | 10.04 | % |  |  |  |  |  | 9.42 | %
Adjusted return on average equity (4) |  |  |  |  | 10.16 | % |  |  |  |  |  | 10.03 | %
Average equity/average assets |  |  |  |  | 11.35 | % |  |  |  |  |  | 10.57 | %
Average interest-earning assets/average interest-bearing liabilities |  |  |  |  | 159.72 | % |  |  |  |  |  | 163.21 | %
Average interest-earning assets/average funding liabilities |  |  |  |  | 108.04 | % |  |  |  |  |  | 107.43 | %
Non-interest income/average assets |  |  |  |  | 0.46 | % |  |  |  |  |  | 0.37 | %
Non-interest expense/average assets |  |  |  |  | 2.55 | % |  |  |  |  |  | 2.52 | %
Efficiency ratio |  |  |  |  | 62.85 | % |  |  |  |  |  | 66.52 | %
Adjusted efficiency ratio (4) |  |  |  |  | 61.22 | % |  |  |  |  |  | 63.65 | %

(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 $4.6 million and $4.2 million for the six months ended June 30, 2025 and 2024, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.1 million for both the six months ended June 30, 2025 and 2024.
(4)Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

BANR - Second Quarter 2025 Results
July 16, 2025
Page 16

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |
* Non-GAAP Financial Measures |  |  |  |  |  |  |  |  |
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this earnings release contains certain non-GAAP financial measures. Tangible common shareholders’ equity per share and the ratio of tangible common equity to tangible assets, and references to adjusted revenue, adjusted earnings, the adjusted return on average assets, the adjusted return on average equity and the adjusted efficiency ratio represent non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:
ADJUSTED REVENUE | Quarters Ended |  | Six Months Ended
| Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  | Jun 30, 2025 |  | Jun 30, 2024
Net interest income (GAAP) | $ | 144,399 |  |  | $ | 141,083 |  |  | $ | 132,546 |  |  | $ | 285,482 |  |  | $ | 265,505 |
Non-interest income (GAAP) | 17,751 |  |  | 19,108 |  |  | 17,199 |  |  | 36,859 |  |  | 28,790 |
Total revenue (GAAP) | 162,150 |  |  | 160,191 |  |  | 149,745 |  |  | 322,341 |  |  | 294,295 |
Exclude: Net loss on sale of securities | 3 |  |  | — |  |  | 562 |  |  | 3 |  |  | 5,465 |
Net change in valuation of financial instruments carried at fair value | (88) |  |  | (315) |  |  | 190 |  |  | (403) |  |  | 1,182 |
Losses incurred on building and lease exits | 919 |  |  | — |  |  | — |  |  | 919 |  |  | — |
Adjusted revenue (non-GAAP) | $ | 162,984 |  |  | $ | 159,876 |  |  | $ | 150,497 |  |  | $ | 322,860 |  |  | $ | 300,942 |

ADJUSTED EARNINGS | Quarters Ended |  | Six Months Ended
| Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  | Jun 30, 2025 |  | Jun 30, 2024
Net income (GAAP) | $ | 45,496 |  |  | $ | 45,135 |  |  | $ | 39,795 |  |  | $ | 90,631 |  |  | $ | 77,354 |
Exclude: Net loss on sale of securities | 3 |  |  | — |  |  | 562 |  |  | 3 |  |  | 5,465 |
Net change in valuation of financial instruments carried at fair value | (88) |  |  | (315) |  |  | 190 |  |  | (403) |  |  | 1,182 |
Building and lease exit costs | 1,753 |  |  | — |  |  | — |  |  | 1,753 |  |  | — |
Related net tax (benefit) expense | (401) |  |  | 76 |  |  | (180) |  |  | (325) |  |  | (1,595) |
Total adjusted earnings (non-GAAP) | $ | 46,763 |  |  | $ | 44,896 |  |  | $ | 40,367 |  |  | $ | 91,659 |  |  | $ | 82,406 |
Diluted earnings per share (GAAP) | $ | 1.31 |  |  | $ | 1.30 |  |  | $ | 1.15 |  |  | $ | 2.61 |  |  | $ | 2.24 |
Diluted adjusted earnings per share (non-GAAP) | $ | 1.35 |  |  | $ | 1.29 |  |  | $ | 1.17 |  |  | $ | 2.64 |  |  | $ | 2.39 |
Return on average assets | 1.13 | % |  | 1.15 | % |  | 1.02 | % |  | 1.14 | % |  | 1.00 | %
Adjusted return on average assets (1) | 1.16 | % |  | 1.14 | % |  | 1.04 | % |  | 1.15 | % |  | 1.06 | %
Return on average equity | 9.92 | % |  | 10.17 | % |  | 9.69 | % |  | 10.04 | % |  | 9.42 | %
Adjusted return on average equity (2) | 10.20 | % |  | 10.12 | % |  | 9.83 | % |  | 10.16 | % |  | 10.03 | %

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

BANR - Second Quarter 2025 Results
July 16, 2025
Page 17

ADDITIONAL FINANCIAL INFORMATION |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |
ADJUSTED EFFICIENCY RATIO |  | Quarters Ended |  | Six Months Ended
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Jun 30, 2024 |  | Jun 30, 2025 |  | Jun 30, 2024
Non-interest expense (GAAP) |  | $ | 101,348 |  |  | $ | 101,259 |  |  | $ | 98,128 |  |  | $ | 202,607 |  |  | $ | 195,769 |
Exclude: CDI amortization |  | (455) |  |  | (456) |  |  | (724) |  |  | (911) |  |  | (1,447) |
State/municipal tax expense |  | (1,416) |  |  | (1,454) |  |  | (1,394) |  |  | (2,870) |  |  | (2,698) |
REO operations |  | (392) |  |  | 61 |  |  | (297) |  |  | (331) |  |  | (77) |
Building and lease exit costs |  | (834) |  |  | — |  |  | — |  |  | (834) |  |  | — |
Adjusted non-interest expense (non-GAAP) |  | $ | 98,251 |  |  | $ | 99,410 |  |  | $ | 95,713 |  |  | $ | 197,661 |  |  | $ | 191,547 |
Net interest income (GAAP) |  | $ | 144,399 |  |  | $ | 141,083 |  |  | $ | 132,546 |  |  | $ | 285,482 |  |  | $ | 265,505 |
Non-interest income (GAAP) |  | 17,751 |  |  | 19,108 |  |  | 17,199 |  |  | 36,859 |  |  | 28,790 |
Total revenue (GAAP) |  | 162,150 |  |  | 160,191 |  |  | 149,745 |  |  | 322,341 |  |  | 294,295 |
Exclude: Net loss on sale of securities |  | 3 |  |  | — |  |  | 562 |  |  | 3 |  |  | 5,465 |
Net change in valuation of financial instruments carried at fair value |  | (88) |  |  | (315) |  |  | 190 |  |  | (403) |  |  | 1,182 |
Losses incurred on building and lease exits |  | 919 |  |  | — |  |  | — |  |  | 919 |  |  | — |
Adjusted revenue (non-GAAP) |  | $ | 162,984 |  |  | $ | 159,876 |  |  | $ | 150,497 |  |  | $ | 322,860 |  |  | $ | 300,942 |
Efficiency ratio (GAAP) |  | 62.50 | % |  | 63.21 | % |  | 65.53 | % |  | 62.85 | % |  | 66.52 | %
Adjusted efficiency ratio (non-GAAP) (1) |  | 60.28 | % |  | 62.18 | % |  | 63.60 | % |  | 61.22 | % |  | 63.65 | %

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

TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS |  |  |  |  |  |  |  |
|  | Jun 30, 2025 |  | Mar 31, 2025 |  | Dec 31, 2024 |  | Jun 30, 2024
Shareholders’ equity (GAAP) |  | $ | 1,865,664 |  |  | $ | 1,833,453 |  |  | $ | 1,774,326 |  |  | $ | 1,690,766 |
Exclude goodwill and other intangible assets, net |  | 375,268 |  |  | 375,723 |  |  | 376,179 |  |  | 377,358 |
Tangible common shareholders’ equity (non-GAAP) |  | $ | 1,490,396 |  |  | $ | 1,457,730 |  |  | $ | 1,398,147 |  |  | $ | 1,313,408 |
Total assets (GAAP) |  | $ | 16,437,169 |  |  | $ | 16,170,812 |  |  | $ | 16,200,037 |  |  | $ | 15,816,194 |
Exclude goodwill and other intangible assets, net |  | 375,268 |  |  | 375,723 |  |  | 376,179 |  |  | 377,358 |
Total tangible assets (non-GAAP) |  | $ | 16,061,901 |  |  | $ | 15,795,089 |  |  | $ | 15,823,858 |  |  | $ | 15,438,836 |
Common shareholders’ equity to total assets (GAAP) |  | 11.35 | % |  | 11.34 | % |  | 10.95 | % |  | 10.69 | %
Tangible common shareholders’ equity to tangible assets (non-GAAP) |  | 9.28 | % |  | 9.23 | % |  | 8.84 | % |  | 8.51 | %
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE |  |  |  |  |  |  |  |
Shareholders’ equity (GAAP) |  | $ | 1,865,664 |  |  | $ | 1,833,453 |  |  | $ | 1,774,326 |  |  | $ | 1,690,766 |
Tangible common shareholders’ equity (non-GAAP) |  | $ | 1,490,396 |  |  | $ | 1,457,730 |  |  | $ | 1,398,147 |  |  | $ | 1,313,408 |
Common shares outstanding at end of period |  | 34,583,994 |  |  | 34,489,972 |  |  | 34,459,832 |  |  | 34,455,752 |
Common shareholders’ equity (book value) per share (GAAP) |  | $ | 53.95 |  |  | $ | 53.16 |  |  | $ | 51.49 |  |  | $ | 49.07 |
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) |  | $ | 43.09 |  |  | $ | 42.27 |  |  | $ | 40.57 |  |  | $ | 38.12 |