Analysts on Wall Street project that Banner (BANR) will announce quarterly earnings of $1.18 per share in its forthcoming report, representing a decline of 17.5% year over year. Revenues are projected to reach $150.28 million, declining 2.7% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timefra ...

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20(unaudited)) This section presents Banner Corporation's unaudited condensed consolidated financial statements and selected explanatory notes for periods ending June 30, 2024 [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to **$15.82 billion** by June 30, 2024, driven by loan growth, with deposits and shareholders' equity also showing modest increases Consolidated Balance Sheet Highlights (in thousands) | Financial Metric | June 30, 2024 | December 31, 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | **$15,816,194** | **$15,670,391** | **$145,803** | **0.9%** | | Net Loans Receivable | $10,991,000 | $10,660,812 | $330,188 | 3.1% | | Total Securities | $3,220,721 | $3,432,838 | ($212,117) | -6.2% | | **Total Deposits** | **$13,079,263** | **$13,029,497** | **$49,766** | **0.4%** | | Total Liabilities | $14,125,428 | $14,017,700 | $107,728 | 0.8% | | **Total Shareholders' Equity** | **$1,690,766** | **$1,652,691** | **$38,075** | **2.3%** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net income for Q2 2024 was **$39.8 million**, nearly flat year-over-year, while year-to-date net income decreased to **$77.4 million** due to higher interest expense Key Operating Results (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $132,546 | $142,518 | $265,505 | $295,830 | | Provision for Credit Losses | $2,369 | $6,764 | $2,889 | $6,240 | | **Net Income** | **$39,795** | **$39,591** | **$77,354** | **$95,146** | | Diluted EPS | $1.15 | $1.15 | $2.24 | $2.76 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2024 increased to **$41.7 million**, primarily due to a smaller other comprehensive loss from less severe unrealized securities losses Comprehensive Income Summary (in thousands) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $39,795 | $39,591 | $77,354 | $95,146 | | Other Comprehensive Income (Loss) | $1,933 | ($13,812) | ($8,414) | $23,321 | | **Comprehensive Income** | **$41,728** | **$25,779** | **$68,940** | **$118,467** | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity grew to **$1.69 billion** by June 30, 2024, driven by **$77.4 million** in net income, partially offset by dividends and other comprehensive loss Shareholders' Equity Movement - YTD 2024 (in thousands) | Description | Amount | | :--- | :--- | | Balance, January 1, 2024 | $1,652,691 | | Net Income | $77,354 | | Other Comprehensive Loss, net of tax | ($8,414) | | Dividends Accrued | ($33,450) | | Stock-based Compensation & Other | $2,585 | | **Balance, June 30, 2024** | **$1,690,766** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$130.2 million** for H1 2024, while investing activities used **$209.3 million**, leading to a **$7.0 million** net decrease in cash and equivalents Net Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $130,154 | $117,955 | | Net Cash (Used by) Provided from Investing Activities | ($209,319) | $298,277 | | Net Cash Provided from (Used by) Financing Activities | $72,159 | ($377,969) | | **Net Change in Cash and Cash Equivalents** | **($7,006)** | **$38,263** | [Selected Notes to the Consolidated Financial Statements](index=10&type=section&id=Selected%20Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on significant accounting policies and key financial statement line items, including securities, loans, deposits, and fair value measurements [Management's Discussion and Analysis (MD&A)](index=48&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operating results, covering loan and deposit trends, net interest margin, strong asset quality, and robust liquidity and capital positions [Executive Overview](index=48&type=section&id=Executive%20Overview) Banner Corporation reported solid Q2 2024 results, with **$149.7 million** in revenue, a **3.70%** net interest margin, **3%** loan growth, and increased tangible book value per share Q2 2024 Financial Highlights (vs. Q1 2024) | Metric | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $149.7 million | $144.6 million | | Net Interest Margin (tax equiv.) | 3.70% | 3.74% | | Net Loans Receivable | $10.99 billion | $10.72 billion | | Non-performing Assets / Total Assets | 0.21% | 0.19% | | Tangible Common Equity per Share* | $38.12 | $37.40 | - The company's strategic initiatives continue to focus on originating high-quality assets and client acquisition to generate strong revenue while maintaining a moderate risk profile[191](index=191&type=chunk) [Comparison of Financial Condition](index=50&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew by **$145.8 million** to **$15.82 billion** by June 30, 2024, driven by **$333.4 million** in loan growth, while deposits and shareholders' equity also increased - Total loans receivable increased by **$333.4 million (3%)** to **$11.14 billion** at June 30, 2024, from December 31, 2023, with notable growth in multifamily construction loans (up **32%**) and one- to four-family residential loans (up **6%**)[203](index=203&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) - Total deposits increased by **$49.8 million** to **$13.08 billion**, with core deposits remaining stable at **$11.55 billion** and representing **88%** of total deposits[215](index=215&type=chunk) - Shareholders' equity increased by **$38.1 million** to **$1.69 billion**, mainly due to **$77.4 million** in net income, partially offset by dividends and a **$8.4 million** increase in accumulated other comprehensive loss[218](index=218&type=chunk) [Comparison of Results of Operations](index=54&type=section&id=Comparison%20of%20Results%20of%20Operations) Q2 2024 net income was **$39.8 million**, improving from Q1 due to higher non-interest income, though net interest margin compressed slightly due to rising funding costs Net Interest Margin Analysis | Period | Net Interest Margin (tax equiv.) | Key Driver | | :--- | :--- | :--- | | Q2 2024 | 3.70% | Increased funding costs partially offset by higher loan yields | | Q1 2024 | 3.74% | N/A | | YTD 2024 | 3.72% | Significant increase in funding costs outpacing asset yield growth | | YTD 2023 | 4.15% | N/A | - Non-interest income for Q2 2024 increased to **$17.2 million** from **$11.6 million** in Q1 2024, primarily due to a **$4.3 million** reduction in net loss on the sale of securities[244](index=244&type=chunk) - Non-interest expense increased slightly to **$98.1 million** in Q2 2024 from **$97.6 million** in Q1 2024, driven by higher salary and benefits costs[249](index=249&type=chunk) [Asset Quality](index=62&type=section&id=Asset%20Quality) Asset quality remains strong with non-performing assets at **0.21%** of total assets, and the allowance for credit losses provides **498%** coverage of non-performing loans Non-Performing Assets (in thousands) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Non-performing Loans | $30,722 | $29,602 | | REO, net | $2,564 | $526 | | **Total Non-performing Assets (NPAs)** | **$33,286** | **$30,128** | | NPAs to Total Assets | 0.21% | 0.19% | - The allowance for credit losses on loans was **$152.8 million**, or **1.37%** of total loans, covering non-performing loans by **498%**[253](index=253&type=chunk) - Special mention loans increased to **$50.0 million** from **$13.7 million** at year-end 2023, primarily due to loan downgrades, while substandard loans decreased to **$122.0 million** from **$125.4 million**[256](index=256&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial borrowing capacity, including **$3.02 billion** from FHLB, and continues its **$0.48** quarterly dividend - Primary sources of funds are deposits, borrowings, and cash flows from assets, with the company primarily using funds for loan growth in the first half of 2024[257](index=257&type=chunk)[262](index=262&type=chunk) - At June 30, 2024, the company had significant off-balance sheet liquidity, including **$3.02 billion** in available FHLB credit and a **$1.59 billion** facility with the Federal Reserve[217](index=217&type=chunk)[263](index=263&type=chunk) - The quarterly cash dividend is maintained at **$0.48** per share, which management believes balances investment in the bank with shareholder returns[265](index=265&type=chunk) [Capital Requirements](index=65&type=section&id=Capital%20Requirements) Both Banner Corporation and Banner Bank exceed all regulatory capital requirements, with the corporation's CET1 ratio at **12.02%**, categorizing them as 'well-capitalized' Regulatory Capital Ratios as of June 30, 2024 | Ratio | Banner Corporation (Consolidated) | Banner Bank | Minimum to be "Well-Capitalized" (Bank) | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 12.02% | 12.49% | 6.50% | | Tier 1 Capital | 12.66% | 12.49% | 8.00% | | Total Capital | 14.62% | 13.70% | 10.00% | | Tier 1 Leverage | 10.80% | 10.66% | 5.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk through simulation modeling, showing short-term asset sensitivity with a **$1.72 billion** positive gap, benefiting from rising rates but vulnerable to falling rates [Market Risk and Asset/Liability Management](index=65&type=section&id=Market%20Risk%20and%20Asset%2FLiability%20Management) The company actively manages interest rate risk from asset-liability repricing mismatches, with **$5.05 billion** in loans having interest rate floors to protect yields - The greatest source of interest rate risk is the mismatch of maturities and repricing intervals for assets and liabilities, with liabilities generally having shorter maturities than assets[273](index=273&type=chunk) - As of June 30, 2024, loans with interest rate floors totaled **$5.05 billion** with a weighted average floor of **4.59%**, of which **$1.29 billion** in loans were at their floors[273](index=273&type=chunk) [Sensitivity Analysis](index=66&type=section&id=Sensitivity%20Analysis) Sensitivity analysis shows a **100 bps** rate increase would boost NII by **0.7%** but decrease EVE by **3.0%**, while a **100 bps** rate cut would decrease NII by **3.0%** and increase EVE by **1.7%** Interest Rate Shock Sensitivity Analysis (as of June 30, 2024) | Change in Rates (bps) | Estimated Change in NII (Next 12 Months) | Estimated Change in EVE | | :--- | :--- | :--- | | +200 | -0.3% | -6.9% | | +100 | +0.7% | -3.0% | | **Base Case** | **0.0%** | **0.0%** | | -100 | -3.0% | +1.7% | | -200 | -6.0% | +1.5% | - The company has a positive one-year cumulative interest sensitivity gap of **$1.72 billion**, representing **10.85%** of total assets, indicating an asset-sensitive position in the short term[284](index=284&type=chunk) [Controls and Procedures](index=69&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2024, the company's disclosure controls and procedures were effective[288](index=288&type=chunk) - No changes in internal control over financial reporting occurred in Q2 2024 that materially affected, or are reasonably likely to materially affect, these controls[289](index=289&type=chunk) [PART II – OTHER INFORMATION](index=70&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=70&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is involved in various legal proceedings, with a class action lawsuit settled in February 2024, and **$702,000** accrued for outstanding matters as of June 30, 2024 - The class action lawsuit Bolding et al. v. Banner Bank received final settlement approval on February 22, 2024[292](index=292&type=chunk) - As of June 30, 2024, the company had accrued **$702,000** for all outstanding legal proceedings[291](index=291&type=chunk) [Risk Factors](index=70&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K were reported - No material changes in risk factors were reported from the 2023 Form 10-K[293](index=293&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board authorized a new repurchase program for up to **1,722,787 shares** on July 25, 2024, while **13,563 shares** were acquired for tax withholding in Q2 2024 - On July 25, 2024, the Board of Directors authorized a new stock repurchase program for up to **1,722,787 shares** (approx. **5%** of outstanding shares)[295](index=295&type=chunk) - In Q2 2024, **13,563 shares** were surrendered by employees to satisfy tax withholding obligations related to vested restricted stock, which is treated as a repurchase but not under a formal buyback plan[297](index=297&type=chunk) [Other Information](index=71&type=section&id=Item%205%20%E2%80%93%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q2 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by any director or officer during Q2 2024[298](index=298&type=chunk) [Exhibits](index=72&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, compensatory plans, and required CEO and CFO certifications - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[301](index=301&type=chunk)[302](index=302&type=chunk)

Banner Corporation (NASDAQ:BANR) Q2 2024 Earnings Conference Call July 18, 2024 11:00 AM ET Company Participants Mark Grescovich - President and Chief Executive Officer Rich Arnold - Head of Investor Relations Rob Butterfield - Chief Financial Officer Jill Rice - Chief Credit Officer Conference Call Participants David Feaster - Raymond James Andrew Liesch - Piper Sandler Andrew Terrell - Stephens, Inc. Kelly Motta - KBW Operator Hello, all, and welcome to Banner Corporation's Second Quarter 2024 Conference ...

Second Quarter 2024 Photo by Salvador Saldana Photo by Yvonne McDonald Photo by Maria DeVecchio Photo by Siti Alimah Disclosure Statement This presentation includes forward-looking statements. These statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner's general outlook for economic and other conditions. Additional forward-looking statements may be made in the que ...

Banner (BANR) reported $149.75 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 0.8%. EPS of $1.17 for the same period compares to $1.32 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $149.66 million, representing a surprise of +0.06%. The company delivered an EPS surprise of +2.63%, with the consensus EPS estimate being $1.14.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Banner (BANR) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.63%. A quarter ago, it was expected that this regional bank would post earnings of $1.17 per share when it actually produced earnings of $1.22, delivering a surprise of 4.27%.Over the last four quarters, the company has s ...

Exhibit 99.1 NEWS RELEASE CONTACT: MARK J. GRESCOVICH, PRESIDENT & CEO ROBERT G. BUTTERFIELD, CFO (509) 527-3636 Banner Corporation Reports Net Income of $39.8 Million, or $1.15 Per Diluted Share, for Second Quarter 2024; Declares Quarterly Cash Dividend of $0.48 Per Share Walla Walla, WA - July 17, 2024 - Banner Corporation (NASDAQ GSM: BANR) ("Banner"), the parent company of Banner Bank, today reported net income of $39.8 million, or $1.15 per diluted share, for the second quarter of 2024, compared to $37 ...

In its upcoming report, Banner (BANR) is predicted by Wall Street analysts to post quarterly earnings of $1.14 per share, reflecting a decline of 13.6% compared to the same period last year. Revenues are forecasted to be $149.66 million, representing a year-over-year decrease of 0.9%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a c ...

Banner Corporation (BANR) is well-positioned for growth driven by decent loan growth, high interest rates and strategic initiatives to boost operational efficiency. Moreover, higher liquidity and product expansion efforts will support financials. Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved 2.4% north. The consensus estimate for 2025 has moved marginally upward. BANR currently carries a Zacks Rank #2 (Buy).Over the past three months, shares of Banner have gained 4.9% against the in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ to ______________ Commission File Number 000-26584 BANNER CORPORATION (Exact name of registrant as specified in its charter) Washington 91-1691 ...