Banner Corporation Reports Net Income of $46.4 Million, or $1.34 Per Diluted Share, for Fourth Quarter 2024; Declares Quarterly Cash Dividend of $0.48 Per Share

Published: 2025-01-22 16:02:03 ET BANR

Banner Corporation (NASDAQ:BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $46.4 million, or $1.34 per diluted share, for the fourth quarter of 2024, compared to $45.2 million, or $1.30 per diluted share, for the preceding quarter and $42.6 million, or $1.24 per diluted share, for the fourth quarter of 2023. Net interest income was $140.5 million in the fourth quarter of 2024, compared to $135.7 million in the preceding quarter and $138.4 million in the fourth quarter a year ago. The increase in net interest income compared to the preceding quarter reflects a decrease in funding costs and an increase in interest-earning assets, partially offset by a decrease in yields on interest earning assets. The increase in net interest income compared to the prior year quarter reflects an increase in both the yield and average balance of interest earning assets, partially offset by an increase in funding costs. Fourth quarter 2024 results included a $3.0 million provision for credit losses, up from $1.7 million in the preceding quarter and $2.5 million in the fourth quarter of 2023.

Net income was $168.9 million, or $4.88 per diluted share, for the year ended December 31, 2024, compared to $183.6 million, or $5.33 per diluted share, for the year ended December 31, 2023. Net interest income for the year ended December 31, 2024 decreased to $541.7 million from $576.0 million for the year ended December 31, 2023, primarily due to the rise of deposit costs of $99.3 million, partially offset by a $77.7 million increase in interest income on loans. Results for the year ended December 31, 2024 included a $7.6 million provision for credit losses, a $5.2 million net loss on the sale of securities and a $1.0 million net decrease in the valuation of financial instruments carried at fair value, compared to a $10.8 million provision for credit losses, a $19.2 million net loss on the sale of securities and a $4.2 million net decrease in the valuation of financial instruments carried at fair value during the same period in 2023.

Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.48 per share payable February 14, 2025, to common shareholders of record on February 4, 2025.

“Banner’s fourth quarter financial performance reflects the continued successful execution of our super community bank strategy, which emphasizes growing new client relationships, maintaining our core funding position, promoting client loyalty and advocacy through our responsive service model, and sustaining a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the fourth quarter of 2024 benefited from our solid year over year loan growth as well as margin expansion during the fourth quarter as a result of lower funding costs. This benefit was partially offset by the declining interest rate environment and its effect on loan yields. Additionally, Banner’s credit metrics continue to be strong, our reserve for loan losses remained solid, and our capital base continues to be robust. We continue to benefit from a strong core deposit base that has been resilient in a highly competitive environment, with core deposits representing 89% of total deposits at quarter end. Banner has upheld its core values for the past 134 years, which are to do the right thing for our clients, communities, colleagues, company and shareholders; and to provide consistent and reliable strength through all economic cycles and change events.”

At December 31, 2024, Banner, on a consolidated basis, had $16.20 billion in assets, $11.20 billion in net loans and $13.51 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.

Fourth Quarter 2024 Highlights

*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 $140.5 million in the fourth quarter of 2024, compared to $135.7 million in the preceding quarter and $138.4 million in the fourth quarter a year ago. Net interest margin on a tax equivalent basis increased ten basis points to 3.82% for the fourth quarter of 2024, compared to 3.72% in the preceding quarter, and decreased compared to 3.83% in the fourth quarter a year ago. Net interest margin for the current quarter, compared to the preceding quarter, benefited from decreased funding costs, partially offset by lower yields on interest earning assets, primarily due to decreases in the targeted federal funds rate in the third and fourth quarters of 2024.

Average yields on interest-earning assets decreased two basis points to 5.31% for the fourth quarter of 2024, compared to 5.33% for the preceding quarter, and increased compared to 5.06% in the fourth quarter a year ago. On September 18, 2024, the Federal Open Market Committee (“FOMC”) of the Federal Reserve System lowered the target range for the federal funds rate 50 basis points, followed by a 25 basis-point decrease on November 7, 2024 and another 25 basis-point decrease on December 18, 2024, resulting in a target range of 4.25% to 4.50% at December 31, 2024. Average loan yields decreased two basis points to 6.02%, compared to 6.04% in the preceding quarter, and increased compared to 5.77% in the fourth quarter a year ago. The decrease in average loan yields during the current quarter primarily reflects the decrease in interest rates, partially offset by the benefits of a balance sheet hedge that matured during the quarter.

Total deposit costs decreased eight basis points to 1.53% in the fourth quarter of 2024, compared to 1.61% in the preceding quarter, and increased compared to 1.18% in the fourth quarter a year ago. The decrease in deposit costs in the current quarter was primarily due to a decrease in interest rates, partially offset by an increase in the average balance of interest-bearing deposits. The average rate paid on borrowings decreased 51 basis points to 4.57% in the fourth quarter of 2024, compared to 5.08% in the preceding quarter, and decreased compared to 4.77% in the fourth quarter a year ago due to lower wholesale borrowings in the current quarter. The total cost of funding liabilities decreased 13 basis points to 1.60% in the fourth quarter of 2024, compared to 1.73% in the preceding quarter, and increased compared to 1.31% in the fourth quarter a year ago.

A $3.0 million provision for credit losses was recorded in the current quarter (comprised of a $3.2 million provision for credit losses - loans, a $203,000 recapture of provision for credit losses - unfunded loan commitments and a $16,000 recapture of provision for credit losses - held-to-maturity debt securities). This compares to a $1.7 million provision for credit losses in the prior quarter (comprised of a $2.0 million provision for credit losses - loans, a $262,000 recapture of provision for credit losses - unfunded loan commitments and a $13,000 recapture of provision for credit losses - held-to-maturity debt securities) and a $2.5 million provision for credit losses in the fourth quarter a year ago (comprised of a $3.8 million provision for credit losses - loans, a $526,000 recapture of provision for credit losses - unfunded loan commitments, a $750,000 recapture of provision for credit losses - available for sale securities and a $23,000 recapture of provision for credit losses - held-to-maturity debt securities). The provision for credit losses for the current quarter primarily reflected risk rating downgrades as well as growth in loan balances.

Total non-interest income was $20.0 million in the fourth quarter of 2024, compared to $18.1 million in the preceding quarter and $14.1 million in the fourth quarter a year ago. The increase in non-interest income during the current quarter compared to the preceding quarter was primarily due to a $506,000 increase in mortgage banking operations revenue and a $1.1 million increase in miscellaneous income, primarily due to a gain recognized on the sale of a non-performing loan during the fourth quarter of 2024. The increase in non-interest income during the current quarter compared to the prior year quarter was primarily due to a $5.1 million decrease in the net loss recognized on the sale of securities. Total non-interest income was $66.9 million for the year ended December 31, 2024, compared to $44.4 million a year earlier related mostly to the losses on the sale of investment securities in 2023.

Mortgage banking operations revenue was $3.7 million in the fourth quarter of 2024, compared to $3.2 million in the preceding quarter and $5.4 million in the fourth quarter a year ago. While the volume of one- to four-family loans sold during the current quarter increased compared to both the preceding and prior year quarters, volumes remained low due to reduced refinancing and purchase activity in the current rate environment. The increase from the preceding quarter reflects a $508,000 gain related to the pooled loan sale of $34.8 million of one- to four-family loans during the fourth quarter of 2024. The decrease from the prior year quarter primarily reflects a $3.5 million reversal of the lower of cost or market adjustment on multifamily loans held for sale, recognized during the fourth quarter of 2023, partially offset by higher pricing and volumes of one- to four-family loans sold during the current quarter compared to the fourth quarter of 2023. The reversal was due to the transfer of all remaining multifamily loans held for sale to the held for investment loan portfolio during the same period. Home purchase activity accounted for 79% of one- to four-family mortgage loan originations in the fourth quarter of 2024, 88% in the preceding quarter and 92% in the fourth quarter of 2023.

Total non-interest expense was $99.5 million in the fourth quarter of 2024, compared to $96.3 million in the preceding quarter and $96.6 million in the fourth quarter of 2023. The increase in non-interest expense for the current quarter compared to the prior quarter reflects a $691,000 increase in salary and employee benefits, primarily resulting from increased incentive accruals, partially offset by decreased medical premiums expense, a $923,000 increase in professional and legal expenses, primarily due to increased consultant expenses, and a $550,000 increase in advertising and marketing expenses, primarily due to increases in printed media marketing and community development expenses. The increase in non-interest expense for the current quarter compared to the same quarter a year ago primarily reflects increases in salary and employee benefits and professional and legal expenses. For the year ended December 31, 2024, total non-interest expense was $391.5 million, compared to $382.5 million for the year ended December 31, 2023. Banner’s efficiency ratio was 61.95% for the fourth quarter of 2024, compared to 62.63% in the preceding quarter and 63.37% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 60.74% for the fourth quarter of 2024, compared to 61.27% in the preceding quarter and 60.04% 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 increased to $16.20 billion at December 31, 2024, compared to $16.19 billion at September 30, 2024, and $15.67 billion at December 31, 2023. Securities and interest-bearing deposits held at other banks totaled $3.40 billion at December 31, 2024, compared to $3.50 billion at September 30, 2024 and $3.48 billion at December 31, 2023. The decrease compared to the prior quarter was primarily due to a decrease in securities - available for sale. The average effective duration of the securities portfolio was approximately 6.6 years at December 31, 2024, compared to 6.5 years at December 31, 2023.

Total loans receivable increased to $11.35 billion at December 31, 2024, compared to $11.22 billion at September 30, 2024, and $10.81 billion at December 31, 2023. Commercial real estate loans increased 2% to $3.86 billion at December 31, 2024, compared to $3.79 billion at September 30, 2024, and increased 6% compared to $3.64 billion at December 31, 2023. The increase in commercial real estate loans from September 30, 2024 and December 31, 2023 was primarily the result of new loan production and the conversion of commercial construction loans to the commercial real estate portfolio upon the completion of the construction phase. Commercial business loans increased 2% to $2.42 billion at December 31, 2024, compared to $2.37 billion at September 30, 2024 and increased 6% compared to $2.28 billion at December 31, 2023, primarily due to new loan production. One- to four-family residential loans increased 1% to $1.59 billion at December 31, 2024, compared to $1.58 billion at September 30, 2024, and increased 5% compared to $1.52 billion at December 31, 2023. The increase in one- to four-family residential loans was primarily the result of one- to four-family construction loans converting to one- to four-family portfolio loans upon the completion of the construction phase and new loan production. Multifamily real estate loans increased 1% to $894.4 million at December 31, 2024, compared to $889.9 million at September 30, 2024, and increased 10% compared to $811.2 million at December 31, 2023. The increase in multifamily real estate loans from September 30, 2024 and December 31, 2023 was primarily the result of the conversion of multifamily construction loans to the multifamily portfolio upon the completion of the construction phase.

Loans held for sale were $32.0 million at December 31, 2024, compared to $78.8 million at September 30, 2024 and $11.2 million at December 31, 2023. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $153.2 million, compared to $95.0 million in the preceding quarter and $65.6 million in the fourth quarter a year ago. The decrease in loans held for sale compared to the prior quarter was primarily the result of the pooled loan sale of $34.8 million of one- to four-family residential loans during the current quarter.

Total deposits were $13.51 billion at December 31, 2024, compared to $13.54 billion at September 30, 2024 and $13.03 billion a year ago. Core deposits decreased slightly to $12.01 billion at December 31, 2024, compared to $12.02 billion at September 30, 2024, and increased 4% compared to $11.55 billion at December 31, 2023. The increase in core deposits compared to the prior year quarter primarily reflects increases in interest-bearing transaction and savings accounts. Core deposits were 89% of total deposits at December 31, 2024, September 30, 2024 and December 31, 2023. Certificates of deposit decreased 1% to $1.50 billion at December 31, 2024, compared to $1.52 billion at September 30, 2024, and increased 2% compared to $1.48 billion a year earlier. The decrease in certificates of deposit during the current quarter compared to the preceding quarter was primarily the result of clients moving funds from certificates of deposits to interest-bearing transaction and savings accounts. The increase in certificates of deposit during the current quarter compared to the fourth quarter a year ago was principally due to clients seeking higher yields moving funds from core deposit accounts to higher yielding certificates of deposit, partially offset by a $57.7 million decrease in brokered deposits.

FHLB advances were $290.0 million at December 31, 2024, compared to $230.0 million at September 30, 2024 and $323.0 million a year ago. At December 31, 2024, off-balance sheet liquidity included additional borrowing capacity of $2.95 billion at the FHLB and $1.52 billion at the Federal Reserve as well as federal funds line of credit agreements with other financial institutions of $125.0 million.

At December 31, 2024, total common shareholders’ equity was $1.77 billion or 10.95% of total assets, compared to $1.79 billion or 11.08% of total assets at September 30, 2024, and $1.65 billion or 10.55% of total assets at December 31, 2023. The decrease in total common shareholders’ equity at December 31, 2024 compared to September 30, 2024 was due to an increase in accumulated other comprehensive loss of $51.7 million as the result of a decrease in the fair value of the security portfolio, partially offset by a $29.6 million increase in retained earnings as a result of $46.4 million in net income, partially offset by the accrual of $16.8 million of cash dividends during the fourth quarter of 2024. At December 31, 2024, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.40 billion, or 8.84% of tangible assets, compared to $1.42 billion, or 8.96% of tangible assets, at September 30, 2024, and $1.27 billion, or 8.33% 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 December 31, 2024, Banner’s estimated common equity Tier 1 capital ratio was 12.44%, its estimated Tier 1 leverage capital to average assets ratio was 11.05%, and its estimated total capital to risk-weighted assets ratio was 15.04%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.

Credit Quality

The allowance for credit losses - loans was $155.5 million, or 1.37% of total loans receivable and 421% of non-performing loans, at December 31, 2024, compared to $154.6 million, or 1.38% of total loans receivable and 359% of non-performing loans, at September 30, 2024, and $149.6 million, or 1.38% of total loans receivable and 506% of non-performing loans, at December 31, 2023. In addition to the allowance for credit losses - loans, Banner maintains an allowance for credit losses - unfunded loan commitments, which was $13.6 million at December 31, 2024, compared to $13.8 million at September 30, 2024, and $14.5 million at December 31, 2023. Net loan charge-offs totaled $2.3 million in the fourth quarter of 2024, compared to $230,000 in the preceding quarter and $1.1 million in the fourth quarter a year ago. Non-performing loans were $37.0 million at December 31, 2024, compared to $43.0 million at September 30, 2024, and $29.6 million a year ago.

An increase in adversely classified loans, offset in part by payoffs and paydowns, resulted in total substandard loans of $192.5 million as of December 31, 2024. This compares to $150.1 million as of September 30, 2024 and $125.4 million a year ago.

Total non-performing assets were $39.6 million, or 0.24% of total assets, at December 31, 2024, compared to $45.2 million, or 0.28% of total assets, at September 30, 2024, and $30.1 million, or 0.19% of total assets, a year ago.

Conference Call

Banner will host a conference call on Thursday, January 23, 2025, at 8:00 a.m. PST, to discuss its fourth 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 347551 to participate in the call. A replay of the call will be available at www.bannerbank.com.

About the Company

Banner Corporation is a $16.20 billion bank holding company operating a commercial bank in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

Forward-Looking Statements

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

Factors that could cause Banner’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: (1) adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a recession or slowed economic growth, or increased political instability due to acts of war; (2) changes in the interest rate environment, including increases or decreases in the Board of Governors of the Federal Reserve System (the “Federal Reserve”) benchmark rate and duration at which such interest rate levels are maintained, which could affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; (3) the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; (4) the effects of any federal government shutdown; (5) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (6) expectations regarding key growth initiatives and strategic priorities; (7) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses, which could necessitate additional provisions for credit losses, resulting both from loans originated and loans acquired from other financial institutions; (8) results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require increases in the allowance for credit losses or writing down of assets or impose restrictions or penalties with respect to Banner’s activities; (9) competitive pressures among depository institutions, including repricing and competitors’ pricing initiatives, and their impact on Banner's market position, loan, and deposit products; (10) the effect of inflation on interest rate movements and their impact on client behavior and net interest margin; (11) fluctuations in real estate values; (12) the ability to adapt successfully to technological changes to meet clients’ needs and developments in the market place; (13) the ability to access cost-effective funding; (14) disruptions, security breaches or other adverse events, failures or interruptions in, or attacks on, information technology systems or on the third-party vendors who perform critical processing functions; (15) changes in financial markets; (16) changes in economic conditions in general and in Washington, Idaho, Oregon and California in particular; (17) the costs, effects and outcomes of litigation; (18) legislation or regulatory changes, including but not limited to changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws or interpretations thereof by taxing authorities; (19) the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors including, but not limited to, our agriculture based lending; (20) changes in accounting principles, policies or guidelines; (21) future acquisitions by Banner of other depository institutions or lines of business, and associated risks of goodwill impairment due to changes in Banner’s business or market conditions; (22) 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; (23) environmental, social and governance goals and targets; (24) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (25) other risks detailed from time to time in Banner’s other reports filed with and furnished to the Securities and Exchange Commission including Banner’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

RESULTS OF OPERATIONS

Quarters Ended

Year Ended

(in thousands except shares and per share data)

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

INTEREST INCOME:

Loans receivable

169,586

168,338

154,532

655,590

577,891

Mortgage-backed securities

16,086

16,357

17,398

66,085

72,352

Securities and cash equivalents

10,764

11,146

11,808

44,428

51,329

Total interest income

196,436

195,841

183,738

766,103

701,572

INTEREST EXPENSE:

Deposits

52,217

53,785

39,342

199,465

100,126

Federal Home Loan Bank (FHLB) advances

2,263

1,870

8,941

10,524

Other borrowings

817

1,147

1,125

4,299

3,376

Subordinated debt

2,781

2,971

2,992

11,682

11,541

Total interest expense

55,900

60,166

45,329

224,387

125,567

Net interest income

140,536

135,675

138,409

541,716

576,005

PROVISION FOR CREDIT LOSSES

3,000

1,692

2,522

7,581

10,789

Net interest income after provision for credit losses

137,536

133,983

135,887

534,135

565,216

NON-INTEREST INCOME:

Deposit fees and other service charges

11,018

10,741

9,560

43,371

41,638

Mortgage banking operations

3,686

3,180

5,391

12,207

11,817

Bank-owned life insurance

2,144

2,445

2,609

9,193

9,245

Miscellaneous

2,751

1,658

1,159

8,289

5,169

19,599

18,024

18,719

73,060

67,869

Net gain (loss) on sale of securities

275

—

(4,806

)

(5,190

)

(19,242

)

Net change in valuation of financial instruments carried at fair value

161

139

(982

)

(4,218

)

Total non-interest income

20,035

18,063

14,052

66,888

44,409

NON-INTEREST EXPENSE:

Salary and employee benefits

62,523

61,832

60,111

250,555

244,563

Less capitalized loan origination costs

(4,188

)

(4,354

)

(3,871

)

(16,857

)

(16,257

)

Occupancy and equipment

12,141

12,040

12,200

48,771

47,886

Information and computer data services

7,471

7,134

7,098

29,165

28,445

Payment and card processing services

5,771

5,346

6,088

22,518

20,547

Professional and legal expenses

3,025

2,102

2,267

7,858

9,830

Advertising and marketing

1,711

1,161

1,686

5,149

4,794

Deposit insurance

2,857

2,874

2,926

11,398

10,529

State and municipal business and use taxes

1,518

1,432

1,372

5,648

5,260

Real estate operations, net

113

103

293

(538

)

Amortization of core deposit intangibles

589

590

858

2,626

3,756

Miscellaneous

5,947

6,031

5,839

24,414

23,723

Total non-interest expense

99,478

96,291

96,621

391,538

382,538

Income before provision for income taxes

58,093

55,755

53,318

209,485

227,087

PROVISION FOR INCOME TAXES

11,702

10,602

10,694

40,587

43,463

NET INCOME

46,391

45,153

42,624

168,898

183,624

Earnings per common share:

Basic

1.34

1.31

1.24

4.90

5.35

Diluted

1.34

1.30

1.24

4.88

5.33

Cumulative dividends declared per common share

0.48

1.92

Weighted average number of common shares outstanding:

Basic

34,501,016

34,498,830

34,381,780

34,470,057

34,344,142

Diluted

34,743,024

34,650,322

34,472,155

34,628,710

34,450,412

Increase in common shares outstanding

3,144

936

2,420

111,463

154,351

FINANCIAL CONDITION

Percentage Change

(in thousands except shares and per share data)

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Prior Qtr

Prior Yr Qtr

ASSETS

Cash and due from banks

203,402

226,568

209,634

(10

Interest-bearing deposits

298,456

252,227

44,830

566

Total cash and cash equivalents

501,858

478,795

254,464

Securities - available for sale, amortized cost $2,460,262, $2,523,968, and $2,729,980, respectively

2,104,511

2,237,939

2,373,783

(11

Securities - held to maturity, fair value $825,528, $879,278, and $907,514, respectively

1,001,564

1,013,903

1,059,055

Total securities

3,106,075

3,251,842

3,432,838

(10

FHLB stock

22,451

19,751

24,028

Loans held for sale

32,021

78,841

11,170

(59

187

Loans receivable

11,354,656

11,224,606

10,810,455

Allowance for credit losses – loans

(155,521

)

(154,585

)

(149,643

)

Net loans receivable

11,199,135

11,070,021

10,660,812

Accrued interest receivable

60,885

66,981

63,100

Property and equipment, net

124,589

125,256

132,231

Goodwill

373,121

—

Other intangibles, net

3,058

3,647

5,684

(16

(46

Bank-owned life insurance

312,549

310,400

304,366

Operating lease right-of-use assets

39,998

38,192

43,731

Other assets

424,297

371,829

364,846

Total assets

16,200,037

16,188,676

15,670,391

—

LIABILITIES

Deposits:

Non-interest-bearing

4,591,543

4,688,244

4,792,369

Interest-bearing transaction and savings accounts

7,423,183

7,328,051

6,759,661

Interest-bearing certificates

1,499,672

1,521,853

1,477,467

Total deposits

13,514,398

13,538,148

13,029,497

—

Advances from FHLB

290,000

230,000

323,000

(10

Other borrowings

125,257

154,533

182,877

(19

(32

Subordinated notes, net

80,278

80,170

92,851

—

(14

Junior subordinated debentures at fair value

67,477

66,257

66,413

Operating lease liabilities

43,472

42,318

48,659

(11

Accrued expenses and other liabilities

258,070

237,128

228,428

Deferred compensation

46,759

46,401

45,975

Total liabilities

14,425,711

14,394,955

14,017,700

—

SHAREHOLDERS’ EQUITY

Common stock

1,307,509

1,304,792

1,299,651

—

Retained earnings

744,091

714,472

642,175

Accumulated other comprehensive loss

(277,274

)

(225,543

)

(289,135

)

Total shareholders’ equity

1,774,326

1,793,721

1,652,691

Total liabilities and shareholders’ equity

16,200,037

16,188,676

15,670,391

—

Common Shares Issued:

Shares outstanding at end of period

34,459,832

34,456,688

34,348,369

Common shareholders’ equity per share (1)

51.49

52.06

48.12

Common shareholders’ tangible equity per share (1) (2)

40.57

41.12

37.09

Common shareholders’ equity to total assets

10.95

11.08

10.55

Common shareholders’ tangible equity to tangible assets (2)

8.84

8.96

8.33

Consolidated Tier 1 leverage capital ratio

11.05

10.91

10.56

(1)

Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding.

(2)

Common shareholders’ tangible equity and tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

LOANS

Percentage Change

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Prior Qtr

Prior Yr Qtr

Commercial real estate (CRE):

Owner-occupied

1,027,426

990,516

915,897

Investment properties

1,623,672

1,583,863

1,541,344

Small balance CRE

1,213,792

1,218,822

1,178,500

—

Multifamily real estate

894,425

889,866

811,232

Construction, land and land development:

Commercial construction

122,362

124,051

170,011

(28

Multifamily construction

513,706

524,108

503,993

One- to four-family construction

514,220

507,350

526,432

Land and land development

369,663

370,690

336,639

—

Commercial business:

Commercial business

1,318,333

1,281,615

1,255,734

Small business scored

1,104,117

1,087,714

1,022,154

Agricultural business, including secured by farmland:

Agricultural business, including secured by farmland

340,280

346,686

331,089

One- to four-family residential

1,591,260

1,575,164

1,518,046

Consumer:

Consumer—home equity revolving lines of credit

625,680

622,615

588,703

—

Consumer—other

95,720

101,546

110,681

(14

Total loans receivable

11,354,656

11,224,606

10,810,455

Loans 30 - 89 days past due and on accrual

26,824

13,030

19,744

Total delinquent loans (including loans on non-accrual), net

55,432

44,656

43,164

Total delinquent loans / Total loans receivable

0.49

0.40

LOANS BY GEOGRAPHIC LOCATION

Percentage Change

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Prior Qtr

Prior Yr Qtr

Amount

Percentage

Amount

Washington

5,245,886

5,203,637

5,095,602

California

2,861,435

2,796,965

2,670,923

Oregon

2,113,229

2,108,229

1,974,001

—

Idaho

665,158

652,148

610,064

Utah

82,459

85,316

68,931

Other

386,489

378,311

390,934

Total loans receivable

11,354,656

100

11,224,606

10,810,455

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

LOAN ORIGINATIONS

Quarters Ended

Year Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

Commercial real estate

124,554

114,372

76,277

408,546

309,022

Multifamily real estate

3,120

314

5,360

6,593

57,046

Construction and land

303,345

472,506

382,905

1,759,799

1,541,383

Commercial business

250,515

179,871

166,984

752,269

585,047

Agricultural business

17,177

5,877

15,058

79,715

84,072

One-to four-family residential

29,531

24,488

37,446

106,085

167,951

Consumer

73,791

96,137

57,427

356,543

300,913

Total loan originations (excluding loans held for sale)

802,033

893,565

741,457

3,469,550

3,045,434

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS

Quarters Ended

Year Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

Balance, beginning of period

154,585

152,848

146,960

149,643

141,465

Provision for credit losses – loans

3,219

1,967

3,821

8,563

11,097

Recoveries of loans previously charged off:

Commercial real estate

1,215

129

2,767

557

Construction and land

—

One- to four-family real estate

124

171

230

Commercial business

245

613

237

1,963

1,283

Agricultural business, including secured by farmland

304

146

Consumer

164

131

476

543

1,750

734

531

5,681

2,788

Loans charged off:

Commercial real estate

)

—

(351

)

—

Construction and land

)

(145

)

(933

)

(150

)

(1,089

)

One- to four-family real estate

—

)

—

(42

)

Commercial business

(3,595

)

(414

)

(310

)

(5,955

)

(2,650

)

Agricultural business, including secured by farmland

—

(564

)

Consumer

(429

)

(405

)

(418

)

(1,910

)

(1,362

)

(4,033

)

(964

)

(1,669

)

(8,366

)

(5,707

)

Net charge-offs

(2,283

)

(230

)

(1,138

)

(2,685

)

(2,919

)

Balance, end of period

155,521

154,585

149,643

155,521

149,643

Net charge-offs / Average loans receivable

(0.020

(0.002

(0.011

(0.024

(0.028

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Commercial real estate

40,830

40,040

44,384

Multifamily real estate

10,308

10,233

9,326

Construction and land

29,038

28,322

28,095

One- to four-family real estate

20,807

20,463

19,271

Commercial business

38,611

39,779

35,464

Agricultural business, including secured by farmland

5,727

5,340

3,865

Consumer

10,200

10,408

9,238

Total allowance for credit losses – loans

155,521

154,585

149,643

Allowance for credit losses - loans / Total loans receivable

1.37

1.38

Allowance for credit losses - loans / Non-performing loans

421

359

506

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS

Quarters Ended

Year Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

Balance, beginning of period

13,765

14,027

15,010

14,484

14,721

Recapture of provision for credit losses - unfunded loan commitments

(203

)

(262

)

(526

)

(922

)

(237

)

Balance, end of period

13,562

13,765

14,484

13,562

14,484

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

NON-PERFORMING ASSETS

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Loans on non-accrual status:

Secured by real estate:

Commercial

2,186

2,127

2,677

Construction and land

3,963

4,286

3,105

One- to four-family

10,016

9,592

5,702

Commercial business

7,067

10,705

9,002

Agricultural business, including secured by farmland

8,485

7,703

3,167

Consumer

4,835

4,636

3,204

36,552

39,049

26,857

Loans more than 90 days delinquent, still on accrual:

Secured by real estate:

Commercial

—

2,258

—

Construction and land

—

380

1,138

One- to four-family

369

961

1,205

Commercial business

—

Consumer

359

401

404

3,958

2,745

Total non-performing loans

36,956

43,007

29,602

REO

2,367

2,221

526

Other repossessed assets

300

—

Total non-performing assets

39,623

45,228

30,128

Total non-performing assets to total assets

0.24

0.28

0.19

LOANS BY CREDIT RISK RATING

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Pass

11,118,744

11,022,014

10,671,281

Special Mention

43,451

52,497

13,732

Substandard

192,461

150,095

125,442

Total

11,354,656

11,224,606

10,810,455

(dollars in thousands)

DEPOSIT COMPOSITION

Percentage Change

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Prior Qtr

Prior Yr Qtr

Non-interest-bearing

4,591,543

4,688,244

4,792,369

Interest-bearing checking

2,393,864

2,344,561

2,098,526

Regular savings accounts

3,478,423

3,339,859

2,980,530

Money market accounts

1,550,896

1,643,631

1,680,605

Total interest-bearing transaction and savings accounts

7,423,183

7,328,051

6,759,661

Total core deposits

12,014,726

12,016,295

11,552,030

—

Interest-bearing certificates

1,499,672

1,521,853

1,477,467

Total deposits

13,514,398

13,538,148

13,029,497

—

GEOGRAPHIC CONCENTRATION OF DEPOSITS

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Percentage Change

Amount

Percentage

Amount

Prior Qtr

Prior Yr Qtr

Washington

7,441,413

7,413,414

7,247,392

—

Oregon

2,981,327

2,997,843

2,852,677

California

2,392,573

2,423,295

2,269,557

Idaho

699,085

703,596

659,871

Total deposits

13,514,398

100

13,538,148

13,029,497

—

INCLUDED IN TOTAL DEPOSITS

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Public non-interest-bearing accounts

165,667

141,541

146,916

Public interest-bearing transaction & savings accounts

248,746

246,332

209,699

Public interest-bearing certificates

25,423

28,144

52,048

Total public deposits

439,836

416,017

408,663

Collateralized public deposits

336,376

317,960

305,306

Total brokered deposits

50,346

50,333

108,058

AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Number of deposit accounts

460,004

459,127

463,750

Average account balance per account

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

ESTIMATED REGULATORY CAPITAL RATIOS AS OF DECEMBER 31, 2024

Actual

Minimum to be

categorized as

"Adequately Capitalized"

Minimum to be

categorized as

"Well Capitalized"

Amount

Ratio

Amount

Ratio

Amount

Ratio

Banner Corporation-consolidated:

Total capital to risk-weighted assets

2,024,046

15.04

1,076,652

8.00

1,345,814

10.00

Tier 1 capital to risk-weighted assets

1,760,065

13.08

807,489

6.00

807,489

6.00

Tier 1 leverage capital to average assets

1,760,065

11.05

636,913

4.00

n/a

Common equity tier 1 capital to risk-weighted assets

1,673,565

12.44

605,616

4.50

n/a

Banner Bank:

Total capital to risk-weighted assets

1,890,438

14.03

1,077,725

8.00

1,347,157

10.00

Tier 1 capital to risk-weighted assets

1,726,457

12.82

808,294

6.00

1,077,725

8.00

Tier 1 leverage capital to average assets

1,726,457

10.83

637,392

4.00

796,740

5.00

Common equity tier 1 capital to risk-weighted assets

1,726,457

12.82

606,221

4.50

875,652

6.50

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

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

(rates / ratios annualized)

ANALYSIS OF NET INTEREST SPREAD

Quarters Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

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

61,585

1,049

6.78

26,954

453

6.69

31,148

447

5.69

Mortgage loans

9,267,076

136,831

5.87

9,207,468

135,497

5.85

8,770,029

123,382

5.58

Commercial/agricultural loans

1,900,337

31,873

6.67

1,879,215

32,547

6.89

1,822,069

30,447

6.63

Consumer and other loans

124,726

2,078

6.63

128,548

2,154

6.67

138,049

2,237

6.43

Total loans (1)

11,353,724

171,831

6.02

11,242,185

170,651

6.04

10,761,295

156,513

5.77

Mortgage-backed securities

2,576,908

16,228

2.51

2,623,399

16,498

2.50

2,798,647

17,541

2.49

Other securities

919,742

10,281

4.45

943,310

11,120

4.69

1,035,842

11,993

4.59

Interest-bearing deposits with banks

107,404

1,043

3.86

51,604

493

3.80

45,286

506

4.43

FHLB stock

9,887

316

12.71

16,664

412

9.84

15,326

215

5.57

Total investment securities

3,613,941

27,868

3.07

3,634,977

28,523

3.12

3,895,101

30,255

3.08

Total interest-earning assets

14,967,665

199,699

5.31

14,877,162

199,174

5.33

14,656,396

186,768

5.06

Non-interest-earning assets

1,016,366

981,290

875,719

Total assets

15,984,031

15,858,452

15,532,115

Deposits:

Interest-bearing checking accounts

2,377,179

9,279

1.55

2,295,723

9,497

1.65

2,060,226

5,907

1.14

Savings accounts

3,441,196

19,447

2.25

3,268,647

19,299

2.35

2,885,167

12,560

1.73

Money market accounts

1,584,092

8,510

2.14

1,611,543

9,184

2.27

1,723,426

7,644

1.76

Certificates of deposit

1,513,966

14,981

3.94

1,540,637

15,805

4.08

1,477,474

13,231

3.55

Total interest-bearing deposits

8,916,433

52,217

2.33

8,716,550

53,785

2.45

8,146,293

39,342

1.92

Non-interest-bearing deposits

4,640,557

—

4,601,755

—

5,036,523

—

Total deposits

13,556,990

52,217

1.53

13,318,305

53,785

1.61

13,182,816

39,342

1.18

Other interest-bearing liabilities:

FHLB advances

7,522

4.50

161,413

2,263

5.58

129,630

1,870

5.72

Other borrowings

143,097

817

2.27

159,439

1,147

2.86

185,518

1,125

2.41

Junior subordinated debentures and subordinated notes

169,678

2,781

6.52

179,075

2,971

6.60

182,678

2,992

6.50

Total borrowings

320,297

3,683

4.57

499,927

6,381

5.08

497,826

5,987

4.77

Total funding liabilities

13,877,287

55,900

1.60

13,818,232

60,166

1.73

13,680,642

45,329

1.31

Other non-interest-bearing liabilities (2)

324,447

311,803

311,539

Total liabilities

14,201,734

14,130,035

13,992,181

Shareholders’ equity

1,782,297

1,728,417

1,539,934

Total liabilities and shareholders’ equity

15,984,031

15,858,452

15,532,115

Net interest income/rate spread (tax equivalent)

143,799

3.71

139,008

3.60

141,439

3.75

Net interest margin (tax equivalent)

3.82

3.72

3.83

Reconciliation to reported net interest income:

Adjustments for taxable equivalent basis

(3,263

)

(3,333

)

(3,030

)

Net interest income and margin, as reported

140,536

3.74

135,675

3.63

138,409

3.75

Additional Key Financial Ratios:

Return on average assets

1.15

1.13

1.09

Adjusted return on average assets (4)

1.15

1.13

1.18

Return on average equity

10.35

10.39

10.98

Adjusted return on average equity (4)

10.28

10.39

11.89

Average equity/average assets

11.15

10.90

9.91

Average interest-earning assets/average interest-bearing liabilities

162.05

161.42

169.55

Average interest-earning assets/average funding liabilities

107.86

107.66

107.13

Non-interest income/average assets

0.50

0.45

0.36

Non-interest expense/average assets

2.48

2.42

2.47

Efficiency ratio

61.95

62.63

63.37

Adjusted efficiency ratio (4)

60.74

61.27

60.04

(1)

Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans.

(2)

Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.

(3)

Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $2.2 million, $2.3 million and $2.0 million for the quarters ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.0 million for each of the quarters ended December 31, 2024, September 30, 2024 and December 31, 2023.

(4)

Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.

ADDITIONAL FINANCIAL INFORMATION

(dollars in thousands)

(rates / ratios annualized)

ANALYSIS OF NET INTEREST SPREAD

Year Ended

Dec 31, 2024

Dec 31, 2023

Average

Balance

Interest and

Dividends

Yield / Cost (3)

Average

Balance

Interest and

Dividends

Yield / Cost (3)

Interest-earning assets:

Held for sale loans

27,627

1,875

6.79

49,106

2,621

5.34

Mortgage loans

9,094,276

526,842

5.79

8,513,487

460,664

5.41

Commercial/agricultural loans

1,871,024

127,028

6.79

1,782,141

113,250

6.35

Consumer and other loans

129,929

8,584

6.61

138,196

8,715

6.31

Total loans (1)

11,122,856

664,329

5.97

10,482,930

585,250

5.58

Mortgage-backed securities

2,650,010

66,652

2.52

2,927,650

72,927

2.49

Other securities

951,515

44,083

4.63

1,173,637

52,148

4.44

Interest-bearing deposits with banks

65,650

2,573

3.92

46,815

2,200

4.70

FHLB stock

16,658

1,302

7.82

17,903

847

4.73

Total investment securities

3,683,833

114,610

3.11

4,166,005

128,122

3.08

Total interest-earning assets

14,806,689

778,939

5.26

14,648,935

713,372

4.87

Non-interest-earning assets

967,122

917,018

Total assets

15,773,811

15,565,953

Deposits:

Interest-bearing checking accounts

2,233,902

33,113

1.48

1,921,326

13,334

0.69

Savings accounts

3,231,631

71,225

2.20

2,674,936

27,739

1.04

Money market accounts

1,632,092

35,206

2.16

1,908,983

24,089

1.26

Certificates of deposit

1,514,726

59,921

3.96

1,209,261

34,964

2.89

Total interest-bearing deposits

8,612,351

199,465

2.32

7,714,506

100,126

1.30

Non-interest-bearing deposits

4,647,100

—

5,436,953

—

Total deposits

13,259,451

199,465

1.50

13,151,459

100,126

0.76

Other interest-bearing liabilities:

FHLB advances

159,954

8,941

5.59

196,819

10,524

5.35

Other borrowings

164,613

4,299

2.61

199,291

3,376

1.69

Junior subordinated debentures and subordinated notes

177,361

11,682

6.59

185,883

11,541

6.21

Total borrowings

501,928

24,922

4.97

581,993

25,441

4.37

Total funding liabilities

13,761,379

224,387

1.63

13,733,452

125,567

0.91

Other non-interest-bearing liabilities (2)

308,667

295,098

Total liabilities

14,070,046

14,028,550

Shareholders’ equity

1,703,765

1,537,403

Total liabilities and shareholders’ equity

15,773,811

15,565,953

Net interest income/rate spread (tax equivalent)

554,552

3.63

587,805

3.96

Net interest margin (tax equivalent)

3.75

4.01

Reconciliation to reported net interest income:

Adjustments for taxable equivalent basis

(12,836

)

(11,800

)

Net interest income and margin, as reported

541,716

3.66

576,005

3.93

Additional Key Financial Ratios:

Return on average assets

1.07

1.18

Adjusted return on average assets (4)

1.10

1.30

Return on average equity

9.91

11.94

Adjusted return on average equity (4)

10.19

13.17

Average equity/average assets

10.80

9.88

Average interest-earning assets/average interest-bearing liabilities

162.46

176.57

Average interest-earning assets/average funding liabilities

107.60

106.67

Non-interest income/average assets

0.42

0.29

Non-interest expense/average assets

2.48

2.46

Efficiency ratio

64.33

61.66

Adjusted efficiency ratio (4)

62.29

57.89

(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 $8.7 million and $7.4 million for the years ended December 31, 2024 and 2023, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $4.1 million and $4.4 million for the years ended December 31, 2024 and 2023, respectively.

(4)

Quarters Ended

Year Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

Net interest income (GAAP)

140,536

135,675

138,409

541,716

576,005

Non-interest income (GAAP)

20,035

18,063

14,052

66,888

44,409

Total revenue (GAAP)

160,571

153,738

152,461

608,604

620,414

Exclude:

Net (gain) loss on sale of securities

(275

)

—

4,806

5,190

19,242

Net change in valuation of financial instruments carried at fair value

(161

)

(39

)

(139

)

982

4,218

Adjusted revenue (non-GAAP)

160,135

153,699

157,128

614,776

643,874

Quarters Ended

Year Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

46,391

45,153

42,624

168,898

183,624

Exclude:

Net (gain) loss on sale of securities

(275

)

—

4,806

5,190

19,242

Net change in valuation of financial instruments carried at fair value

(161

)

(39

)

(139

)

982

4,218

Banner Forward expenses (1)

—

1,334

Related net tax expense (benefit)

105

(1,121

)

(1,481

)

(5,951

)

46,060

45,123

46,170

173,589

202,467

1.34

1.30

1.24

4.88

5.33

1.33

1.30

1.34

5.01

5.88

1.15

1.13

1.09

1.07

1.18

1.15

1.13

1.18

1.10

1.30

10.35

10.39

10.98

9.91

11.94

10.28

10.39

11.89

10.19

13.17

(1)

Included in miscellaneous expenses in results of operations.

(2)

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

(3)

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

Quarters Ended

Year Ended

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Dec 31, 2024

Dec 31, 2023

99,478

96,291

96,621

391,538

382,538

Exclude:

Banner Forward expenses (1)

—

(1,334

)

CDI amortization

(589

)

(590

)

(858

)

(2,626

)

(3,756

)

State/municipal tax expense

(1,518

)

(1,432

)

(1,372

)

(5,648

)

(5,260

)

REO operations

(113

)

(103

)

(47

)

(293

)

538

97,258

94,166

94,344

382,971

372,726

140,536

135,675

138,409

541,716

576,005

20,035

18,063

14,052

66,888

44,409

160,571

153,738

152,461

608,604

620,414

Exclude:

Net (gain) loss on sale of securities

(275

)

—

4,806

5,190

19,242

Net change in valuation of financial instruments carried at fair value

(161

)

(39

)

(139

)

982

4,218

160,135

153,699

157,128

614,776

643,874

61.95

62.63

63.37

64.33

61.66

60.74

61.27

60.04

62.29

57.89

(1)

Included in miscellaneous expenses in results of operations.

(2)

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

TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS

Dec 31, 2024

Sep 30, 2024

Dec 31, 2023

Shareholders’ equity (GAAP)

1,774,326

1,793,721

1,652,691

Exclude goodwill and other intangible assets, net

376,179

376,768

378,805

Tangible common shareholders’ equity (non-GAAP)

1,398,147

1,416,953

1,273,886

Total assets (GAAP)

16,200,037

16,188,676

15,670,391

Exclude goodwill and other intangible assets, net

376,179

376,768

378,805

Total tangible assets (non-GAAP)

15,823,858

15,811,908

15,291,586

Common shareholders’ equity to total assets (GAAP)

10.95

11.08

10.55

Tangible common shareholders’ equity to tangible assets (non-GAAP)

8.84

8.96

8.33

TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE

Shareholders’ equity (GAAP)

1,774,326

1,793,721

1,652,691

Tangible common shareholders’ equity (non-GAAP)

1,398,147

1,416,953

1,273,886

Common shares outstanding at end of period

34,459,832

34,456,688

34,348,369

Common shareholders’ equity (book value) per share (GAAP)

51.49

52.06

48.12

Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)

40.57

41.12

37.09

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