Exhibit 99.1

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

Banner Corporation Reports Net Income of $47.7 Million, or $1.36 Per Diluted Share, for Third Quarter 2026;
Declares Quarterly Cash Dividend of $0.52 Per Share; Results Strengthened by Completion of Pacific Financial Corporation Acquisition

Walla Walla, WA - October 21, 2026 - Banner Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $47.7 million, or $1.36 per diluted share, for the third quarter of 2026, compared to $48.9 million, or $1.43 per diluted share, for the preceding quarter, and $53.5 million, or $1.54 per diluted share, for the third quarter of 2025. Net interest income was $161.9 million for the third quarter of 2026, compared to $153.7 million in the preceding quarter and $150.0 million for the third quarter a year ago. The increase in net interest income compared to both the prior quarter and the third quarter a year ago was primarily driven by an increase in average interest-earning assets resulting from the acquisition of Pacific Financial Corporation (“Pacific Financial”) on September 1, 2026 and organic loan growth, as well as expansion in Banner’s net interest margin reflecting higher yields on interest-earning assets. Funding costs increased compared to the prior quarter, partially offsetting the increase in interest income, but decreased compared to the third quarter a year ago. Third quarter 2026 results included $5.2 million of merger-and acquisition-related costs, compared to $238,000 in the preceding quarter and none in the third quarter of 2025. Third quarter 2026 results also included a $2.8 million provision for credit losses, compared to $3.8 million in the preceding quarter and $2.7 million in the third quarter of 2025.
Net income was $151.3 million, or $4.39 per diluted share, for the nine months ended September 30, 2026, compared to net income of $144.1 million, or $4.15 per diluted share, for the nine months ended September 30, 2025. Results for the nine months ended September 30, 2026 included a $5.8 million provision for credit losses, a $3.3 million net loss on the sale of securities and a $1.8 million net increase in fair value adjustments on financial instruments carried at fair value, compared to a $10.6 million provision for credit losses, a $374,000 net gain on the sale of securities and a $626,000 net increase in the fair value adjustments on financial instruments carried at fair value during the same period in 2025. The nine months ended September 30, 2026 results included $5.4 million of merger and acquisition related costs, compared to none for the nine months ended September 30, 2025.
Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.52 per share payable November 13, 2026, to common shareholders of record on November 5, 2026.
“During the third quarter, we completed the merger with Pacific Financial Corporation, the holding company of Bank of the Pacific,” said Mark Grescovich, President and CEO. “Bank of the Pacific was a highly respected, financially strong community bank with exceptional core deposits. This transaction expands our presence and density in attractive Western Washington and Western Oregon markets while offering Bank of the Pacific customers broader product offerings and technology tools, increased commercial lending limits and an expanded branch delivery system.”
“Banner’s results for the third quarter reflect the continued strength of our super community bank model, which prioritizes deepening client relationships, maintaining a strong funding base, and delivering exceptional service while upholding a moderate risk profile,” Grescovich continued. “Our earnings for the third quarter of 2026 benefited from loan growth and the completion of the merger with Pacific Financial. These benefits were partially offset by higher non-interest expense, which primarily reflects merger related expenses. Banner continues to build on a foundation of solid credit quality, backed by a well-funded credit loss reserve and a robust capital position that offers both resilience and flexibility for future growth. At the same time, the strategic investments we have made across the organization are delivering tangible results, further positioning Banner for long-term success. We also continue to capitalize on a strong core deposit base, with core deposits representing 90% of total deposits at quarter-end. For more than 136 years, Banner has upheld its core values by consistently doing the right thing for our clients, communities, colleagues, company and shareholders. Our long-standing commitment has enabled us to earn trust, navigate change with confidence and continue building a strong foundation for the future.”
At September 30, 2026, Banner, on a consolidated basis, had $18.08 billion in assets, $12.82 billion in net loans and $15.39 billion in deposits. Banner operates 153 full-service branch offices, including branches located in eight of the top 20 largest western United States Metropolitan Statistical Areas by population.


BANR - Third Quarter 2026 Results
October 21, 2026
Page 2
Third Quarter 2026 Highlights
•Net interest margin, on a tax equivalent basis, was 4.14% for the current quarter, compared to 4.13% in the preceding quarter and 3.98% in the third quarter a year ago.
•Revenue was $177.3 million for the third quarter of 2026, compared to $172.0 million in the preceding quarter and increased 4% from $170.7 million in the third quarter a year ago.
•Net interest income was $161.9 million in the third quarter of 2026, compared to $153.7 million in the preceding quarter and $150.0 million in the third quarter a year ago.
•Return on average assets was 1.11% for the third quarter of 2026, compared to 1.20% in the preceding quarter and 1.30% in the third quarter a year ago.
•Net loans receivable increased 8% to $12.82 billion at September 30, 2026, compared to $11.83 billion at June 30, 2026, and increased 11% from $11.54 billion at September 30, 2025.
•Loan originations increased to $1.28 billion for the third quarter of 2026, compared to $1.26 billion in the preceding quarter and increased 61% from $794.5 million in the third quarter a year ago.
•Total deposits were $15.39 billion at September 30, 2026, compared to $13.79 billion at June 30, 2026, and $14.02 billion at September 30, 2025.
•Core deposits represented 90% of total deposits at September 30, 2026.
•Non-performing assets were $63.0 million, or 0.35% of total assets, at September 30, 2026, compared to $60.5 million, or 0.36% of total assets, at June 30, 2026, and $45.3 million, or 0.27% of total assets, at September 30, 2025.
•The allowance for credit losses - loans was $171.6 million, or 1.32% of total loans receivable, as of September 30, 2026, compared to $161.8 million, or 1.35% of total loans receivable, as of June 30, 2026, and $159.7 million, or 1.36% of total loans receivable, as of September 30, 2025.
•Dividends paid to shareholders were $0.52 per share in the quarter ended September 30, 2026.
•Common shareholders’ equity per share was $58.56 at September 30, 2026, compared to $58.83 at June 30, 2026, and increased 5% from $55.71 at September 30, 2025.
•Tangible common shareholders’ equity per share* decreased 4% to $45.84 at September 30, 2026, compared to $47.82 at June 30, 2026, and increased 2% from $44.79 at September 30, 2025.
•Repurchased 200,000 shares of Banner common stock during the third quarter of 2026 at an average price of $71.03 per share

*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.

Significant Recent Events
On September 1, 2026, Banner completed the acquisition of Pacific Financial Corporation the holding company for Bank of the Pacific, in an all-stock transaction. At closing, Bank of the Pacific had 18 branch locations, including 15 in Washington and three in Oregon. Shareholders of Pacific Financial received 0.2633 shares of Banner common stock for each share of Pacific Financial common stock they owned, plus cash in lieu of any fractional shares, for total consideration paid of $186.8 million.
The Pacific Financial transaction was accounted for using the acquisition method of accounting. Accordingly, the assets (including identifiable intangible assets) and the liabilities of Pacific Financial were measured at their respective estimated fair values as of the merger date. The excess of the purchase price over the fair value of the net assets acquired was attributed to goodwill. The fair value on the merger date represents management's best estimates based on available information and facts and circumstances in existence on the merger date. The acquisition method of accounting is subject to adjustment within a measurement period of one year from the acquisition date. The acquisition brought $1.29 billion of assets, including $756.9 million of net loans receivable, and $1.14 billion of deposits to Banner.
Income Statement Review
Net interest income was $161.9 million in the third quarter of 2026, compared to $153.7 million in the preceding quarter and $150.0 million in the third quarter a year ago. Net interest margin, on a tax equivalent basis, increased one basis point to 4.14% for the third quarter of 2026, compared to 4.13% in the preceding quarter, and increased 16 basis points from 3.98% in the third quarter a year ago. The net interest margin for the current quarter benefited from a higher average yield on interest-earning assets compared to the preceding quarter, partially offset by higher funding costs. Compared to the third quarter a year ago, the increase in the net interest margin primarily reflected lower funding costs and a higher average yield on interest-earning assets.
Interest income was $214.6 million in the third quarter of 2026, compared to $202.7 million in the preceding quarter and $205.8 million in the third quarter of 2025. Average yields on interest-earning assets increased five basis points to 5.46% for the third quarter of 2026, compared to 5.41% for the preceding quarter, primarily reflecting a higher proportion of loans within the interest-earning asset mix and an increase in loan yields. Compared to the third quarter a year ago, average yields on interest-earning assets increased by three basis points from 5.43%. Average loan yields increased by three basis points to 6.12% in the third quarter of 2026, compared to 6.09% in the preceding quarter, and decreased from 6.17% in the third quarter a year ago.
Interest expense was $52.7 million in the third quarter of 2026, compared to $48.9 million in the preceding quarter and $55.9 million in the third quarter a year ago. Total deposit costs increased by five basis points to 1.38% in the third quarter of 2026, compared to 1.33% in the preceding quarter, and decreased by 12 basis points compared to 1.50% in the third quarter a year ago. The increase in deposit costs compared to the preceding quarter was primarily due to higher average rates paid across all deposit categories and a shift in deposit mix toward interest-bearing deposits, partially offset by growth in non-interest-bearing deposits. The decrease in deposit costs in the current quarter compared to the same quarter a year ago primarily reflected lower average rates paid across all deposit categories.

BANR - Third Quarter 2026 Results
October 21, 2026
Page 3
The average rate paid on borrowings increased 11 basis points to 3.99% in the third quarter of 2026 from 3.88% in the preceding quarter, primarily reflecting higher average rates paid on borrowings and lower FHLB advances in the current quarter. The average rate paid on borrowings decreased by 19 basis points from 4.18% in the third quarter a year ago, primarily due to lower average rates paid on FHLB advances and junior subordinated debentures and subordinated notes, partially offset by a higher average rate paid on other borrowings. The total cost of funding liabilities increased four basis points to 1.43% in the third quarter of 2026, compared to 1.39% in the preceding quarter, and decreased 14 basis points from 1.57% in the third quarter a year ago.
A $2.8 million provision for credit losses was recorded in the current quarter (comprised of a $1.8 million provision for credit losses - loans and a $1.0 million provision for credit losses - unfunded loan commitments). This compares to a $3.8 million provision for credit losses in the prior quarter (comprised of a $1.6 million provision for credit losses - loans and a $2.2 million provision for credit losses - unfunded loan commitments) and a $2.7 million provision for credit losses in the third quarter a year ago (comprised of a $1.4 million provision for credit losses - loans and a $1.3 million provision for credit losses - unfunded loan commitments). The provision for credit losses recorded in the third quarter of 2026 primarily reflected loan growth, partially offset by improvements in credit quality.
Total non-interest income was $15.4 million in the third quarter of 2026, compared to $18.2 million in the preceding quarter and $20.7 million in the third quarter of 2025. The decrease from the preceding quarter was driven primarily by a net loss on the sale of securities of $2.1 million, resulting from the sale of the investment portfolio acquired from Pacific Financial, as well as a $630,000 decrease in miscellaneous income, reflecting lower gains on SBA loan sales and fluctuations in other miscellaneous income items. These decreases were partially offset by a $470,000 favorable change in fair value adjustments on financial instruments. Compared to the prior year quarter, non-interest income decreased primarily due to lower miscellaneous income, as well as lower mortgage banking revenue. These declines were partially offset by higher deposit fees and other service charges. Total non-interest income was $52.8 million for the nine months ended September 30, 2026, compared to $57.6 million for the same period in 2025.
Total non-interest expense was $115.7 million in the third quarter of 2026, compared to $108.0 million in the preceding quarter and $102.0 million in the third quarter of 2025. Merger-related expenses were $5.2 million in the third quarter of 2026, compared to $238,000 in the preceding quarter and none in the third quarter of 2025. Excluding merger-related expenses, the increase from the preceding quarter reflected increases in expenses in several categories related to the acquired Pacific Financial operations, including an increase in salary and employee benefits. In addition, real estate operations expense increased by $1.1 million, reflecting write-downs of foreclosed real estate. The increase compared to the same quarter a year ago primarily reflects increases in salary and employee benefits, information and computer data services expenses, professional and legal expenses, and real estate operations expenses, partially offset by a decrease in occupancy and equipment expense. For the nine months ended September 30, 2026, total non-interest expense was $326.3 million, compared to $304.6 million for the nine months ended September 30, 2025.
Banner’s efficiency ratio was 65.25% for the third quarter of 2026, compared to 62.80% in the preceding quarter and 59.76% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 59.53% for the third quarter of 2026, compared to 61.30% in the preceding quarter and 58.54% 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 9% to $18.08 billion at September 30, 2026, compared to $16.59 billion at June 30, 2026, and increased 9% compared to $16.56 billion at September 30, 2025. The increase for both periods was primarily due to the $1.29 billion of assets acquired in the Pacific Financial acquisition. In addition, both periods benefited from organic loan growth. Securities and interest-bearing deposits held at other banks totaled $3.43 billion at September 30, 2026, compared to $3.17 billion at June 30, 2026 and $3.47 billion at September 30, 2025. The average effective duration of the securities portfolio was approximately 6.0 years and 6.4 years at September 30, 2026 and September 30, 2025, respectively.
Total loans receivable increased 8% to $13.00 billion at September 30, 2026, compared to $11.99 billion at June 30, 2026, and increased 11% from $11.70 billion at September 30, 2025. The increase in total loans compared to both periods included $765.5 million of portfolio loans acquired from Pacific Financial.
Commercial real estate loans totaled $4.61 billion at September 30, 2026, an increase of 11% from $4.14 billion at June 30, 2026, and 15% from $4.00 billion at September 30, 2025. Commercial business loans totaled $2.73 billion at September 30, 2026, an increase of 6% compared to $2.58 billion at June 30, 2026, and an increase of 12% from $2.43 billion at September 30, 2025. Growth in both categories reflected the Pacific Financial acquisition and new loan production, partially offset by payoffs and paydowns.
Multifamily real estate loans totaled $913.3 million at September 30, 2026, an increase of 7% from $855.9 million at June 30, 2026, and 6% from $860.7 million at September 30, 2025. Construction, land and land development loans totaled $1.80 billion at September 30, 2026, an increase of 6% from $1.69 billion at June 30, 2026, and 4% from $1.74 billion at September 30, 2025. Growth in these categories reflected the acquisition of Pacific Financial, as well as new loan production and advances, partially offset by transfers to the permanent loan portfolios upon completion of the construction phase.
Agricultural business loans totaled $389.2 million at September 30, 2026, an increase of 15% from $337.5 million at June 30, 2026, and 10% from $354.9 million at September 30, 2025, primarily reflecting the acquisition, partially offset by payoffs and paydowns. Consumer loans totaled $929.8 million at September 30, 2026, an increase of 12% from $827.0 million at June 30, 2026, and 26% from $740.3 million at September 30, 2025. The growth primarily reflected the acquisition of Pacific Financial, as well as new loan production and advances, particularly on home equity revolving lines of credit.

BANR - Third Quarter 2026 Results
October 21, 2026
Page 4
Loans held for sale were $32.7 million at September 30, 2026, compared to $27.2 million at June 30, 2026, and $20.3 million at September 30, 2025. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $103.3 million, compared to $134.6 million in the preceding quarter, and $136.9 million in the third quarter a year ago. The increase in loans held for sale at September 30, 2026, compared to both the preceding quarter and the prior year quarter, was attributable to one- to four-family residential mortgage held for sale loan originations outpacing loan sales during the current quarter.
Total deposits were $15.39 billion at September 30, 2026, compared to $13.79 billion at June 30, 2026, and $14.02 billion at September 30, 2025. Core deposits increased to $13.78 billion at September 30, 2026, compared to $12.32 billion at June 30, 2026, and $12.48 billion at September 30, 2025. The increase in deposits reflected $1.14 billion in deposits from Pacific Financial during the third quarter of 2026. Excluding acquired deposits, the increase from both the prior quarter and prior year quarter reflected increases in both noninterest-bearing and interest-bearing transaction and savings accounts. Core deposits remained stable at 90% of total deposits at September 30, 2026, and at 89% at both June 30, 2026 and September 30, 2025. Certificates of deposit increased 10% to $1.62 billion at September 30, 2026, compared to $1.47 billion at June 30, 2026, and increased 5%, compared to $1.54 billion at September 30, 2025, due to the Pacific Financial acquisition.
There were no outstanding FHLB advances at September 30, 2026, compared to $320.0 million outstanding FHLB advances at June 30, 2026, and $100.0 million at September 30, 2025. The decrease in FHLB advances during the quarter reflected repayment of all outstanding advances, as deposits served as the primary source of funding. At September 30, 2026, off-balance sheet liquidity included additional borrowing capacity of $3.82 billion at the FHLB and $1.56 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million.
At September 30, 2026, total common shareholders’ equity was $2.13 billion, or 11.80% of total assets, compared to $2.00 billion, or 12.05% of total assets at June 30, 2026, and $1.91 billion, or 11.55% of total assets, at September 30, 2025. The increase in total common shareholders’ equity from June 30, 2026, was primarily due to a $174.6 million increase in common stock, primarily attributable to the acquisition of Pacific Financial during the third quarter. In addition, retained earnings increased by $29.8 million, resulting from $47.7 million in net income, partially offset by the accrual of $17.9 million in cash dividends and a $69.7 million increase in accumulated other comprehensive loss. The Company repurchased 200,000 shares of its common stock in the third quarter of 2026 at an average price of $71.03 per share. At September 30, 2026, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.67 billion, or 9.48% of tangible assets, compared to $1.63 billion, or 10.02% of tangible assets, at June 30, 2026, and $1.54 billion, or 9.50% of tangible assets, at September 30, 2025. 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 September 30, 2026, Banner’s estimated common equity Tier 1 capital ratio was 12.57%, its estimated Tier 1 leverage capital to average assets ratio was 11.59%, and its estimated total capital to risk-weighted assets ratio was 14.42%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports.
Credit Quality
The allowance for credit losses - loans was $171.6 million, or 1.32% of total loans receivable and 290% of non-performing loans, at September 30, 2026, compared to $161.8 million, or 1.35% of total loans receivable and 295% of non-performing loans, at June 30, 2026, and $159.7 million, or 1.36% of total loans receivable and 399% of non-performing loans, at September 30, 2025. The allowance ratio decreased compared to both prior periods, primarily reflecting the acquisition of Pacific Financial, which had favorable credit quality and a moderately lower risk profile. Coverage of non-performing loans remained strong at 290% at September 30, 2026, compared to 295% at June 30, 2026. The year-over-year decline from 399% at September 30, 2025 reflects a moderate increase in non-performing loans over the past year, while the allowance level has remained stable and commensurate with the portfolio’s risk profile. In addition to the allowance for credit losses - loans, the allowance for credit losses - unfunded loan commitments was $16.2 million at September 30, 2026, compared to $15.1 million at June 30, 2026, and $14.0 million at September 30, 2025. Net loan charge-offs were $704,000 in the third quarter of 2026, compared to net loan charge-offs of $101,000 and $2.2 million in the preceding quarter and third quarter of 2025, respectively. Non-performing loans were $59.1 million at September 30, 2026, compared to $54.8 million at June 30, 2026, and $40.0 million at September 30, 2025. Despite the increase in non-performing loans, substandard loans declined to $209.7 million at September 30, 2026, from $218.4 million at June 30, 2026. Total non-performing assets were $63.0 million, or 0.35% of total assets, at September 30, 2026, compared to $60.5 million, or 0.36% of total assets, at June 30, 2026, and $45.3 million, or 0.27% of total assets, at September 30, 2025.

Conference Call
Banner will host a conference call on Thursday, October 22, 2026, at 8:00 a.m. PDT, to discuss its third quarter results. Interested investors may listen to the call live at www.bannerbank.com. Investment professionals are invited to dial (833) 461-5787 using access code 349483357 to participate in the call. A replay of the call will be available at www.bannerbank.com.
About the Company
Banner Corporation is an $18.08 billion bank holding company operating a commercial bank primarily in Washington, Oregon, California and Idaho 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 - Third Quarter 2026 Results
October 21, 2026
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, volatility, and the timing and pace 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, South America, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity 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 publicity 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 that adversely affect pricing, market share, deposit flows 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 platforms, 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 completed and 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 Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q.
Further, statements about the effects of Banner’s acquisition of Pacific Financial, completed on September 1, 2026, on Banner’s business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond Banner’s control, including, but are not limited to the risk that: (1) the business of Pacific Financial may not be integrated with Banner’s business successfully, including the planned systems conversions, or such integration may be more difficult, time-consuming or costly than expected; (2) the anticipated benefits of the merger, including anticipated cost savings and earnings accretion, may not be realized or may not be realized within the expected time period; (3) customer and employee relationships and business operations may be disrupted by the merger, and Banner may be challenged in retaining key customers and employees following its completion; (4) merger-related and integration expenses may be greater than expected; (5) preliminary estimates of the fair value of acquired assets and assumed liabilities may change during the measurement period, and acquired loans may experience higher credit losses than anticipated; (6) management’s attention may be diverted from ongoing business operations and opportunities due to integration activities; and (7) other factors detailed in Banner’s filings with the SEC.

BANR - Third Quarter 2026 Results
October 21, 2026
Page 6
RESULTS OF OPERATIONSQuarters EndedNine Months Ended
(in thousands except shares and per share data)Sep 30, 2026Jun 30, 2026Sep 30, 2025Sep 30, 2026Sep 30, 2025
INTEREST INCOME:
Loans receivable$188,586 $178,389 $179,065 $540,678 $523,115 
Mortgage-backed securities14,996 14,053 15,090 43,365 46,250 
Securities and cash equivalents10,998 10,244 11,693 31,041 30,610 
Total interest income214,580 202,686 205,848 615,084 599,975 
INTEREST EXPENSE:
Deposits50,022 45,554 52,251 141,254 150,304 
Federal Home Loan Bank (FHLB) advances653 1,426 1,527 2,119 5,757 
Other borrowings695 732 694 2,124 2,063 
Subordinated debt
1,317 1,234 1,387 3,785 6,380 
Total interest expense52,687 48,946 55,859 149,282 164,504 
Net interest income161,893 153,740 149,989 465,802 435,471 
PROVISION FOR CREDIT LOSSES2,824 3,818 2,670 5,846 10,604 
Net interest income after provision for credit losses159,069 149,922 147,319 459,956 424,867 
NON-INTEREST INCOME:
Deposit fees and other service charges11,496 11,728 10,955 34,615 32,559 
Mortgage banking operations2,575 2,792 3,298 8,579 9,627 
Bank-owned life insurance2,354 2,471 2,702 7,137 7,661 
Miscellaneous750 1,380 3,175 3,956 6,742 
17,175 18,371 20,130 54,287 56,589 
Net (loss) gain on sale of securities(2,102)8 377 (3,336)374 
Net change in valuation of financial instruments carried at fair value313 (157)223 1,818 626 
Total non-interest income15,386 18,222 20,730 52,769 57,589 
NON-INTEREST EXPENSE:
Salary and employee benefits71,410 69,388 64,935 208,530 195,278 
Less capitalized loan origination costs(4,917)(5,283)(4,802)(14,086)(13,056)
Occupancy and equipment10,965 10,936 12,518 32,598 36,871 
Information and computer data services8,882 10,321 8,199 27,516 24,026 
Payment and card processing services6,821 6,218 6,060 19,080 17,709 
Professional and legal expenses2,225 2,519 2,190 6,357 6,891 
Advertising and marketing1,766 1,980 1,395 4,419 3,072 
Deposit insurance2,615 2,819 2,867 8,151 8,464 
State and municipal business and use taxes1,919 1,773 1,655 5,512 4,525 
Real estate operations, net1,261 165 203 1,535 534 
Amortization of core deposit intangibles663 256 341 1,175 1,252 
Miscellaneous6,889 6,660 6,461 20,072 19,063 
110,499 107,752 102,022 320,859 304,629 
Merger and acquisition-related expenses5,177 238 — 5,415 — 
Total non-interest expense115,676 107,990 102,022 326,274 304,629 
Income before provision for income taxes58,779 60,154 66,027 186,451 177,827 
PROVISION FOR INCOME TAXES11,070 11,268 12,525 35,140 33,694 
NET INCOME$47,709 $48,886 $53,502 $151,311 $144,133 
Earnings per common share:
Basic$1.37 $1.44 $1.55 $4.41 $4.17 
Diluted$1.36 $1.43 $1.54 $4.39 $4.15 
Cumulative dividends declared per common share$0.52 $0.52 $0.48 $1.54 $1.44 
Weighted average number of common shares outstanding:
Basic34,856,074 34,012,611 34,494,824 34,305,632 34,543,969 
Diluted35,026,771 34,129,173 34,659,346 34,479,283 34,730,103 

BANR - Third Quarter 2026 Results
October 21, 2026
Page 7
FINANCIAL CONDITIONPercentage Change
(in thousands except shares and per share data)Sep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025Prior QtrPrior Yr Qtr
ASSETS
Cash and due from banks$234,056 $215,508 $182,772 $193,453 9 %21 %
Interest-bearing deposits324,049 219,944 239,868 479,410 47 %(32)%
Total cash and cash equivalents
558,105 435,452 422,640 672,863 28 %(17)%
Securities - available for sale, amortized cost $2,538,271, $2,273,608, $2,271,471 and $2,292,835, respectively
2,184,309 2,015,891 2,016,261 2,018,525 8 %8 %
Securities - held to maturity, fair value $709,449, $787,987, $814,668 and $815,434, respectively
918,914 929,309 961,196 971,603 (1)%(5)%
Total securities
3,103,223 2,945,200 2,977,457 2,990,128 5 %4 %
FHLB stock10,000 24,209 16,476 14,226 (59)%(30)%
Loans held for sale32,698 27,160 42,902 20,334 20 %61 %
Loans receivable12,995,341 11,994,410 11,721,687 11,702,538 8 %11 %
Allowance for credit losses – loans(171,563)(161,849)(160,276)(159,707)6 %7 %
Net loans receivable
12,823,778 11,832,561 11,561,411 11,542,831 8 %11 %
Accrued interest receivable72,660 65,016 60,525 64,914 12 %12 %
Property and equipment, net129,175 108,247 111,522 113,848 19 %13 %
Goodwill434,283 373,121 373,121 373,121 16 %16 %
Other intangibles, net28,948 979 1,491 1,806 2,857 %1,503 %
Bank-owned life insurance355,332 324,164 319,347 317,469 10 %12 %
Operating lease right-of-use assets31,454 29,534 32,736 35,494 7 %(11)%
Other assets503,781 427,904 434,860 416,047 18 %21 %
Total assets
$18,083,437 $16,593,547 $16,354,488 $16,563,081 9 %9 %
LIABILITIES
Deposits:
Non-interest-bearing$4,970,392 $4,542,942 $4,489,839 $4,572,338 9 %9 %
Interest-bearing transaction and savings accounts8,807,919 7,773,630 7,721,003 7,903,215 13 %11 %
Interest-bearing certificates1,615,158 1,473,021 1,532,304 1,540,382 10 %5 %
Total deposits15,393,469 13,789,593 13,743,146 14,015,935 12 %10 %
Advances from FHLB— 320,000 150,000 100,000 (100)%(100)%
Other borrowings105,248 114,497 107,715 120,536 (8)%(13)%
Junior subordinated debentures at fair value87,122 79,652 79,151 76,251 9 %14 %
Operating lease liabilities34,022 32,108 35,755 38,826 6 %(12)%
Accrued expenses and other liabilities279,603 210,134 245,266 251,464 33 %11 %
Deferred compensation50,070 48,300 47,158 47,177 4 %6 %
Total liabilities15,949,534 14,594,284 14,408,191 14,650,189 9 %9 %
SHAREHOLDERS’ EQUITY
Common stock1,443,098 1,268,527 1,282,505 1,295,821 14 %11 %
Retained earnings970,008 940,210 871,803 837,826 3 %16 %
Accumulated other comprehensive loss(279,203)(209,474)(208,011)(220,755)33 %26 %
Total shareholders’ equity2,133,903 1,999,263 1,946,297 1,912,892 7 %12 %
Total liabilities and shareholders’ equity$18,083,437 $16,593,547 $16,354,488 $16,563,081 9 %9 %
Common Shares Issued:
Shares outstanding at end of period36,442,062 33,984,909 34,097,856 34,335,297 
Common shareholders’ equity per share (1)
$58.56 $58.83 $57.08 $55.71 
Common shareholders’ tangible equity per share (1) (2)
$45.84 $47.82 $46.09 $44.79 
Common shareholders’ equity to total assets11.80 %12.05 %11.90 %11.55 %
Common shareholders’ tangible equity to tangible assets (2)
9.48 %10.02 %9.84 %9.50 %
Consolidated Tier 1 leverage capital ratio11.59 %11.79 %11.41 %11.33 %
(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 - Third Quarter 2026 Results
October 21, 2026
Page 8
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
LOANSPercentage Change
Sep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025Prior QtrPrior Yr Qtr
Commercial real estate (CRE):
Owner-occupied$1,330,460 $1,229,993 $1,138,298 $1,134,559 8 %17 %
Investment properties1,804,740 1,744,127 1,701,413 1,652,141 3 %9 %
Small balance CRE1,471,499 1,166,516 1,212,357 1,210,357 26 %22 %
Multifamily real estate913,324 855,862 850,789 860,650 7 %6 %
Construction, land and land development:
Commercial construction220,048 181,843 156,021 144,125 21 %53 %
Multifamily construction520,521 503,058 514,330 586,104 3 %(11)%
One- to four-family construction645,694 631,183 607,447 578,128 2 %12 %
Land and land development416,397 378,172 433,678 427,348 10 %(3)%
Commercial business:
Commercial business1,358,990 1,286,818 1,225,108 1,254,460 6 %8 %
Small business scored1,374,527 1,295,861 1,187,360 1,176,889 6 %17 %
Agricultural business, including secured by farmland:
Agricultural business, including secured by farmland389,220 337,487 353,152 354,884 15 %10 %
One- to four-family residential1,620,111 1,556,493 1,573,191 1,582,605 4 %2 %
Consumer:
Consumer—home equity revolving lines of credit802,440 744,546 679,489 649,188 8 %24 %
Consumer—other127,370 82,451 89,054 91,100 54 %40 %
Total loans receivable$12,995,341 $11,994,410 $11,721,687 $11,702,538 8 %11 %
Loans 30 - 89 days past due and on accrual$24,287 $17,686 $26,767 $14,674 
Total delinquent loans (including loans on non-accrual), net$73,285 $61,333 $63,093 $45,529 
Total delinquent loans / Total loans receivable0.56 %0.51 %0.54 %0.39 %

LOANS BY GEOGRAPHIC LOCATIONPercentage Change
Sep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025Prior QtrPrior Yr Qtr
AmountPercentageAmountAmountAmount
Washington$5,947,312 46 %$5,359,130 $5,371,200 $5,407,327 11 %10 %
California3,422,524 26 %3,275,124 3,105,405 3,064,993 5 %12 %
Oregon2,495,998 19 %2,210,617 2,159,404 2,137,422 13 %17 %
Idaho736,557 6 %732,830 667,343 668,949 1 %10 %
Utah88,784 1 %78,216 82,594 79,697 14 %11 %
Other304,166 2 %338,493 335,741 344,150 (10)%(12)%
Total loans receivable$12,995,341 100 %$11,994,410 $11,721,687 $11,702,538 8 %11 %

BANR - Third Quarter 2026 Results
October 21, 2026
Page 9
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)

LOAN ORIGINATIONSQuarters Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025
Commercial real estate$203,374 $163,031 $118,354 
Multifamily real estate28,351 215 2,500 
Construction and land594,168 561,290 369,363 
Commercial business251,592 312,028 167,627 
Agricultural business4,890 9,032 7,681 
One-to four-family residential 35,337 37,998 6,817 
Consumer165,021 172,152 122,193 
Total loan originations (excluding loans held for sale)$1,282,733 $1,255,746 $794,535 



BANR - Third Quarter 2026 Results
October 21, 2026
Page 10
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS
  Quarters Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025
Balance, beginning of period$161,849 $160,352 $160,501 
Initial allowance for credit loss at acquisition8,624 — — 
Provision for credit losses – loans1,794 1,598 1,384 
Recoveries of loans previously charged off:
Commercial real estate10 12 36 
Construction and land— 5 725 
One- to four-family real estate12 12 13 
Commercial business433 171 99 
Agricultural business, including secured by farmland5 213 99 
Consumer68 63 78 
528 476 1,050 
Loans charged off:
Construction and land— — (218)
One- to four-family real estate(207)— — 
Commercial business(500)(293)(518)
Agricultural business, including secured by farmland— (4)(2,054)
Consumer(525)(280)(438)
(1,232)(577)(3,228)
Net charge-offs(704)(101)(2,178)
Balance, end of period$171,563 $161,849 $159,707 
Net charge-offs / average loans receivable(0.006)%(0.001)%(0.019)%

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANSSep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025
Commercial real estate$46,114 $42,167 $41,599 $41,191 
Multifamily real estate10,543 9,859 9,805 9,901 
Construction and land33,231 32,124 35,508 35,144 
One- to four-family real estate19,361 19,478 19,552 20,485 
Commercial business42,702 41,114 37,785 37,646 
Agricultural business, including secured by farmland6,523 5,859 5,567 5,268 
Consumer13,089 11,248 10,460 10,072 
Total allowance for credit losses – loans$171,563 $161,849 $160,276 $159,707 
Allowance for credit losses - loans / Total loans receivable1.32 %1.35 %1.37 %1.36 %
Allowance for credit losses - loans / Non-performing loans290 %295 %351 %399 %

CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS
  Quarters Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025
Balance, beginning of period$15,125 $12,903 $12,750 
Provision for credit losses - unfunded loan commitments1,029 2,222 1,290 
Balance, end of period$16,154 $15,125 $14,040 


BANR - Third Quarter 2026 Results
October 21, 2026
Page 11
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
NON-PERFORMING ASSETSSep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025
Loans on non-accrual status:
Secured by real estate:
Commercial$5,376 $2,132 $525 $460 
Multifamily167 — — — 
Construction and land12,200 12,648 5,175 4,240 
One- to four-family25,624 23,398 19,855 16,576 
Commercial business5,229 6,968 6,751 6,824 
Agricultural business, including secured by farmland3,021 2,967 4,609 5,765 
Consumer4,790 4,784 4,610 4,877 
56,407 52,897 41,525 38,742 
Loans more than 90 days delinquent, still on accrual:
Secured by real estate:
Commercial— 234 — 274 
Construction and land— — 1,268 — 
One- to four-family2,491 1,427 2,698 834 
Commercial business— — — 166 
Consumer199 265 148 — 
2,690 1,926 4,114 1,274 
Total non-performing loans59,097 54,823 45,639 40,016 
REO3,860 5,720 5,578 5,272 
Other repossessed assets— — 18 — 
Total non-performing assets$62,957 $60,543 $51,235 $45,288 
Total non-performing assets to total assets0.35 %0.36 %0.31 %0.27 %

LOANS BY CREDIT RISK RATINGSep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025
Pass$12,751,020 $11,754,475 $11,446,550 $11,491,485 
Special Mention34,665 21,509 82,060 37,013 
Substandard209,656 218,426 193,077 174,040 
Total$12,995,341 $11,994,410 $11,721,687 $11,702,538 


BANR - Third Quarter 2026 Results
October 21, 2026
Page 12

ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands) 
DEPOSIT COMPOSITIONPercentage Change
Sep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025Prior QtrPrior Yr Qtr
Non-interest-bearing$4,970,392 $4,542,942 $4,489,839 $4,572,338 9 %9 %
Interest-bearing checking3,088,085 2,623,149 2,609,080 2,734,822 18 %13 %
Regular savings accounts4,099,252 3,853,612 3,723,922 3,705,823 6 %11 %
Money market accounts1,620,582 1,296,869 1,388,001 1,462,570 25 %11 %
Total interest-bearing transaction and savings accounts8,807,919 7,773,630 7,721,003 7,903,215 13 %11 %
Total core deposits13,778,311 12,316,572 12,210,842 12,475,553 12 %10 %
Interest-bearing certificates1,615,158 1,473,021 1,532,304 1,540,382 10 %5 %
Total deposits$15,393,469 $13,789,593 $13,743,146 $14,015,935 12 %10 %

GEOGRAPHIC CONCENTRATION OF DEPOSITSSep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025Percentage Change
AmountPercentageAmountAmountAmountPrior QtrPrior Yr Qtr
Washington$8,562,173 56 %$7,268,041 $7,500,215 $7,648,527 18 %12 %
Oregon3,275,006 21 %3,142,625 3,035,104 3,081,329 4 %6 %
California2,783,673 18 %2,631,688 2,483,948 2,542,903 6 %9 %
Idaho772,617 5 %747,239 723,879 743,176 3 %4 %
Total deposits$15,393,469 100 %$13,789,593 $13,743,146 $14,015,935 12 %10 %

INCLUDED IN TOTAL DEPOSITSSep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025
Public non-interest-bearing accounts$164,992 $171,112 $138,860 $139,999 
Public interest-bearing transaction & savings accounts378,147 242,061 234,669 230,192 
Public interest-bearing certificates48,995 34,794 34,431 35,660 
Total public deposits$592,134 $447,967 $407,960 $405,851 
Collateralized public deposits$488,656 $348,318 $312,310 $312,142 
Total brokered deposits$— $— $50,002 $49,989 
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNTSep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025
Number of deposit accounts474,642 441,808 445,989 449,087 
Average account balance per account$33 $32 $31 $31 




BANR - Third Quarter 2026 Results
October 21, 2026
Page 13
ADDITIONAL FINANCIAL INFORMATION
(in thousands) 
ACQUISITION OF PACIFIC FINANCIAL CORPORATION
The following table* provides the estimated fair value of the assets acquired and liabilities assumed in the Pacific Financial Corporation acquisition at September 1, 2026 (in thousands):
Pacific Financial Corporation
September 1, 2026
Cash paid$982 
Fair value of common shares issued185,864 
Total consideration
186,846 
Fair value of assets acquired:
Cash and cash equivalents
120,605 
Securities
322,928 
Federal Home Loan Bank stock
768 
Net loans receivable756,921 
Property and equipment
20,306 
Core deposit intangible
28,632 
Bank-owned life insurance
28,795 
Deferred tax asset
534 
Operating lease right-of-use assets3,126 
Other assets
9,537 
Total assets acquired
1,292,152 
Fair value of liabilities assumed:
Deposits
1,140,283 
Junior subordinated debentures
11,400 
Deferred compensation
2,547 
Operating lease liabilities3,206 
Other liabilities
9,032 
Total liabilities assumed
1,166,468 
Net assets acquired
125,684 
Goodwill
$61,162 
* Amounts recorded in this table are preliminary estimates of fair value. Additional adjustments to the acquisition accounting may be required with a measurement period of one year from the acquisition date.

BANR - Third Quarter 2026 Results
October 21, 2026
Page 14
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
KEY FINANCIAL RATIOSQuarters EndedNine Months Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025Sep 30, 2026Sep 30, 2025
Return on average assets1.11 %1.20 %1.30 %1.22 %1.19 %
Adjusted return on average assets (1)
1.24 %1.21 %1.28 %1.27 %1.20 %
Return on average equity9.19 %9.91 %11.33 %10.11 %10.49 %
Adjusted return on average equity (1)
10.22 %9.98 %11.18 %10.47 %10.51 %
Return on average tangible common equity (1)
11.58 %12.27 %14.24 %12.59 %13.27 %
Average equity/average assets12.10 %12.09 %11.49 %12.10 %11.40 %
Average interest-earning assets/average interest-bearing liabilities158.87 %159.69 %159.82 %159.34 %159.75 %
Average interest-earning assets/average funding liabilities108.34 %108.42 %108.11 %108.40 %108.06 %
Non-interest income/average assets0.36 %0.45 %0.50 %0.43 %0.48 %
Non-interest expense/average assets2.70 %2.65 %2.48 %2.64 %2.53 %
Efficiency ratio65.25 %62.80 %59.76 %62.92 %61.78 %
Adjusted efficiency ratio (1)
59.53 %61.30 %58.54 %60.09 %60.30 %
(1)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.

ESTIMATED REGULATORY CAPITAL RATIOS AS OF SEPTEMBER 30, 2026ActualMinimum to be categorized as "Adequately Capitalized"Minimum to be
categorized as
"Well Capitalized"
AmountRatioAmountRatioAmountRatio
Banner Corporation-consolidated:
      Total capital to risk-weighted assets$2,238,012 14.42 %$1,241,499 8.00 %$1,551,873 10.00 %
      Tier 1 capital to risk-weighted assets1,950,818 12.57 %931,124 6.00 %931,124 6.00 %
      Tier 1 leverage capital to average assets1,950,818 11.59 %673,198 4.00 % n/a  n/a
      Common equity tier 1 capital to risk-weighted assets1,950,818 12.57 %698,343 4.50 % n/a  n/a
Banner Bank:
      Total capital to risk-weighted assets2,139,006 13.79 %1,241,112 8.00 %1,551,390 10.00 %
      Tier 1 capital to risk-weighted assets1,951,312 12.58 %930,834 6.00 %1,241,112 8.00 %
      Tier 1 leverage capital to average assets1,951,312 11.60 %672,922 4.00 %841,153 5.00 %
      Common equity tier 1 capital to risk-weighted assets1,951,312 12.58 %698,126 4.50 %1,008,404 6.50 %

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

BANR - Third Quarter 2026 Results
October 21, 2026
Page 15
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREADQuarters Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025
Average BalanceInterest and Dividends
Yield / Cost (3)
Average BalanceInterest and Dividends
Yield / Cost (3)
Average BalanceInterest and Dividends
Yield / Cost (3)
Interest-earning assets:
Held for sale loans
$28,484 $435 6.06 %$33,242 $509 6.14 %$32,109 $531 6.56 %
Real estate secured loans10,336,321 157,949 6.06 %9,875,493 148,303 6.02 %9,651,895 147,682 6.07 %
Commercial/agricultural loans
1,892,754 30,243 6.34 %1,881,938 29,866 6.37 %1,869,782 31,124 6.60 %
Consumer and other loans
128,400 2,332 7.21 %117,727 2,015 6.87 %119,593 2,114 7.01 %
Total loans (1)
12,385,959 190,959 6.12 %11,908,400 180,693 6.09 %11,673,379 181,451 6.17 %
Mortgage-backed securities
2,358,520 15,220 2.56 %2,275,561 14,269 2.52 %2,445,497 15,269 2.48 %
Other securities
964,707 10,346 4.25 %938,205 9,915 4.24 %854,725 9,065 4.21 %
Interest-bearing deposits with banks
135,744 1,256 3.67 %139,672 1,102 3.16 %291,147 3,053 4.16 %
FHLB stock
12,815 329 10.19 %16,342 150 3.68 %15,729 463 11.68 %
Total investment securities3,471,786 27,151 3.10 %3,369,780 25,436 3.03 %3,607,098 27,850 3.06 %
Total interest-earning assets
15,857,745 218,110 5.46 %15,278,180 206,129 5.41 %15,280,477 209,301 5.43 %
Non-interest-earning assets1,155,000 1,082,054 1,022,905 
Total assets
$17,012,745 $16,360,234 $16,303,382 
Deposits:
Interest-bearing checking accounts
$2,819,736 11,215 1.58 %$2,606,252 9,433 1.45 %$2,618,924 10,834 1.64 %
Savings accounts
3,963,030 20,276 2.03 %3,830,346 19,009 1.99 %3,616,728 20,170 2.21 %
Money market accounts
1,414,605 6,485 1.82 %1,314,496 5,790 1.77 %1,471,938 7,799 2.10 %
Certificates of deposit
1,519,253 12,046 3.15 %1,465,885 11,322 3.10 %1,510,966 13,448 3.53 %
Total interest-bearing deposits
9,716,624 50,022 2.04 %9,216,979 45,554 1.98 %9,218,556 52,251 2.25 %
Non-interest-bearing deposits
4,655,219 — — %4,523,594 — — %4,573,009 — — %
Total deposits
14,371,843 50,022 1.38 %13,740,573 45,554 1.33 %13,791,565 52,251 1.50 %
Other interest-bearing liabilities:
FHLB advances
65,141 653 3.98 %145,176 1,426 3.94 %133,380 1,527 4.54 %
Other borrowings
108,036 695 2.55 %116,146 732 2.53 %119,727 694 2.30 %
Junior subordinated debentures and subordinated notes
91,491 1,317 5.71 %89,178 1,234 5.55 %89,178 1,387 6.17 %
Total borrowings
264,668 2,665 3.99 %350,500 3,392 3.88 %342,285 3,608 4.18 %
Total funding liabilities
14,636,511 52,687 1.43 %14,091,073 48,946 1.39 %14,133,850 55,859 1.57 %
Other non-interest-bearing liabilities (2)
317,543 290,601 296,036 
Total liabilities
14,954,054 14,381,674 14,429,886 
Shareholders’ equity2,058,691 1,978,560 1,873,496 
Total liabilities and shareholders’ equity$17,012,745 $16,360,234 $16,303,382 
Net interest income/rate spread (tax equivalent)165,423 4.03 %157,183 4.02 %153,442 3.86 %
Net interest margin (tax equivalent)4.14 %4.13 %3.98 %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis(3,530)(3,443)(3,453)
Net interest income and margin, as reported$161,893 4.05 %$153,740 4.04 %$149,989 3.89 %
(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, which Banner believes provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice. The tax equivalent yield adjustment to interest earned on loans was $2.4 million, $2.3 million and $2.4 million for the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.2 million for the quarter ended September 30, 2026, and $1.1 million for both the quarters ended June 30, 2026, and September 30, 2025.


BANR - Third Quarter 2026 Results
October 21, 2026
Page 16
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
(rates / ratios annualized)
ANALYSIS OF NET INTEREST SPREADNine Months Ended
Sep 30, 2026Sep 30, 2025
Average BalanceInterest and Dividends
Yield/Cost (3)
Average BalanceInterest and Dividends
Yield/Cost (3)
Interest-earning assets:
Held for sale loans
$29,268 $1,325 6.05 %$28,203 $1,391 6.59 %
Real estate secured loans9,990,880 450,621 6.03 %9,528,868 429,315 6.02 %
Commercial/agricultural loans
1,876,124 89,262 6.36 %1,900,225 93,072 6.55 %
Consumer and other loans
120,803 6,387 7.07 %120,735 6,293 6.97 %
Total loans (1)
12,017,075 547,595 6.09 %11,578,031 530,071 6.12 %
Mortgage-backed securities
2,320,187 43,998 2.54 %2,494,794 46,740 2.50 %
Other securities
927,502 29,301 4.22 %883,330 28,313 4.29 %
Interest-bearing deposits with banks
153,029 3,876 3.39 %144,974 4,114 3.79 %
FHLB stock
13,034 627 6.43 %17,214 834 6.48 %
Total investment securities3,413,752 77,802 3.05 %3,540,312 80,001 3.02 %
Total interest-earning assets
15,430,827 625,397 5.42 %15,118,343 610,072 5.40 %
Non-interest-earning assets1,114,707 1,007,862 
Total assets
$16,545,534 $16,126,205 
Deposits:
Interest-bearing checking accounts
$2,686,656 29,921 1.49 %$2,489,219 28,833 1.55 %
Savings accounts
3,862,559 57,673 2.00 %3,521,141 57,110 2.17 %
Money market accounts
1,372,422 18,426 1.80 %1,506,171 23,388 2.08 %
Certificates of deposit
1,488,968 35,234 3.16 %1,510,594 40,973 3.63 %
Total interest-bearing deposits
9,410,605 141,254 2.01 %9,027,125 150,304 2.23 %
Non-interest-bearing deposits
4,550,490 — — %4,526,898 — — %
Total deposits
13,961,095 141,254 1.35 %13,554,023 150,304 1.48 %
Other interest-bearing liabilities:
FHLB advances
71,692 2,119 3.95 %168,663 5,757 4.56 %
Other borrowings
111,904 2,124 2.54 %125,517 2,063 2.20 %
Junior subordinated debentures and subordinated notes
89,958 3,785 5.63 %142,255 6,380 6.00 %
Total borrowings
273,554 8,028 3.92 %436,435 14,200 4.35 %
Total funding liabilities
14,234,649 149,282 1.40 %13,990,458 164,504 1.57 %
Other non-interest-bearing liabilities (2)
309,638 298,056 
Total liabilities
14,544,287 14,288,514 
Shareholders’ equity2,001,247 1,837,691 
Total liabilities and shareholders’ equity$16,545,534 $16,126,205 
Net interest income/rate spread (tax equivalent)476,115 4.02 %445,568 3.83 %
Net interest margin (tax equivalent)4.13 %3.94 %
Reconciliation to reported net interest income:
Adjustments for taxable equivalent basis(10,313)(10,097)
Net interest income and margin, as reported$465,802 4.04 %$435,471 3.85 %
(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 $6.9 million and $7.0 million for the nine months ended September 30, 2026 and 2025, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $3.4 million and $3.1 million for the nine months ended September 30, 2026 and 2025, respectively.



BANR - Third Quarter 2026 Results
October 21, 2026
Page 17
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, the ratio of tangible common equity to tangible assets, the return on average tangible common equity, 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 REVENUEQuarters EndedNine Months Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025Sep 30, 2026Sep 30, 2025
Net interest income (GAAP)$161,893 $153,740 $149,989 $465,802 $435,471 
Non-interest income (GAAP)15,386 18,222 20,730 52,769 57,589 
Total revenue (GAAP)177,279 171,962 170,719 518,571 493,060 
Exclude: Net loss (gain) on sale of securities2,102 (8)(377)3,336 (374)
Net change in valuation of financial instruments carried at fair value(313)157 (223)(1,818)(626)
Losses incurred on building and lease exits— — (1,373)— (454)
Adjusted revenue (non-GAAP)$179,068 $172,111 $168,746 $520,089 $491,606 

ADJUSTED EARNINGSQuarters EndedNine Months Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025Sep 30, 2026Sep 30, 2025
Net income (GAAP)$47,709 $48,886 $53,502 $151,311 $144,133 
Exclude: Net loss (gain) on sale of securities2,102 (8)(377)3,336 (374)
Net change in valuation of financial instruments carried at fair value(313)157 (223)(1,818)(626)
Merger and acquisition-related expenses5,177 238 — 5,415 — 
Building and lease exit costs63 47 (331)119 1,422 
Related net tax (benefit) expense(1,688)(104)224 (1,693)(101)
Total adjusted earnings (non-GAAP)$53,050 $49,216 $52,795 $156,670 $144,454 
Diluted earnings per share (GAAP)$1.36 $1.43 $1.54 $4.39 $4.15 
Diluted adjusted earnings per share (non-GAAP)$1.51 $1.44 $1.52 $4.54 $4.16 
Return on average assets1.11 %1.20 %1.30 %1.22 %1.19 %
Adjusted return on average assets (1)
1.24 %1.21 %1.28 %1.27 %1.20 %
Return on average equity9.19 %9.91 %11.33 %10.11 %10.49 %
Adjusted return on average equity (2)
10.22 %9.98 %11.18 %10.47 %10.51 %
AVERAGE TANGIBLE COMMON EQUITYQuarters EndedNine Months Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025Sep 30, 2026Sep 30, 2025
Net Income (GAAP)$47,709 $48,886 $53,502 $151,311 $144,133 
Exclude: Amortization of intangibles, net of tax$524 $202 $269 $928 $989 
Tangible net income available to common shareholders (non-GAAP)$48,233 $49,088 $53,771 $152,239 $145,122 
Average common shareholder’s equity$2,058,691 $1,978,560 $1,873,496 $2,001,247 $1,837,691 
Exclude: Average goodwill and other intangible assets, net405,947 374,225 375,093 384,999 375,504 
Average tangible common equity$1,652,744 $1,604,335 $1,498,403 $1,616,248 $1,462,187 
Return on average tangible common equity (3)
11.58 %12.27 %14.24 %12.59 %13.27 %

(1)Adjusted earnings (non-GAAP) divided by average assets.
(2)Adjusted earnings (non-GAAP) divided by average equity.
(3)Tangible net income (non-GAAP) divided by average tangible common equity (non-GAAP).

BANR - Third Quarter 2026 Results
October 21, 2026
Page 18
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
ADJUSTED EFFICIENCY RATIOQuarters EndedNine Months Ended
Sep 30, 2026Jun 30, 2026Sep 30, 2025Sep 30, 2026Sep 30, 2025
Non-interest expense (GAAP)$115,676 $107,990 $102,022 $326,274 $304,629 
Exclude: CDI amortization(663)(256)(341)(1,175)(1,252)
State/municipal tax expense(1,919)(1,773)(1,655)(5,512)(4,525)
REO operations(1,261)(165)(203)(1,535)(534)
Merger and acquisition-related expenses(5,177)(238)— (5,415)— 
Building and lease exit costs(63)(47)(1,042)(119)(1,876)
Adjusted non-interest expense (non-GAAP)$106,593 $105,511 $98,781 $312,518 $296,442 
Net interest income (GAAP)$161,893 $153,740 $149,989 $465,802 $435,471 
Non-interest income (GAAP)15,386 18,222 20,730 52,769 57,589 
Total revenue (GAAP)177,279 171,962 170,719 518,571 493,060 
Exclude: Net loss (gain) on sale of securities2,102 (8)(377)3,336 (374)
Net change in valuation of financial instruments carried at fair value(313)157 (223)(1,818)(626)
Losses incurred on building and lease exits— — (1,373)— (454)
Adjusted revenue (non-GAAP)$179,068 $172,111 $168,746 $520,089 $491,606 
Efficiency ratio (GAAP)65.25 %62.80 %59.76 %62.92 %61.78 %
Adjusted efficiency ratio (non-GAAP) (1)
59.53 %61.30 %58.54 %60.09 %60.30 %

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

TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
Sep 30, 2026Jun 30, 2026Dec 31, 2025Sep 30, 2025
Shareholders’ equity (GAAP)$2,133,903 $1,999,263 $1,946,297 $1,912,892 
Exclude goodwill and other intangible assets, net463,231 374,100 374,612 374,927 
Tangible common shareholders’ equity (non-GAAP)$1,670,672 $1,625,163 $1,571,685 $1,537,965 
Total assets (GAAP)$18,083,437 $16,593,547 $16,354,488 $16,563,081 
Exclude goodwill and other intangible assets, net463,231 374,100 374,612 374,927 
Total tangible assets (non-GAAP)$17,620,206 $16,219,447 $15,979,876 $16,188,154 
Common shareholders’ equity to total assets (GAAP)11.80 %12.05 %11.90 %11.55 %
Tangible common shareholders’ equity to tangible assets (non-GAAP)9.48 %10.02 %9.84 %9.50 %
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
Shareholders’ equity (GAAP)$2,133,903 $1,999,263 $1,946,297 $1,912,892 
Tangible common shareholders’ equity (non-GAAP)$1,670,672 $1,625,163 $1,571,685 $1,537,965 
Common shares outstanding at end of period36,442,062 33,984,909 34,097,856 34,335,297 
Common shareholders’ equity (book value) per share (GAAP)$58.56 $58.83 $57.08 $55.71 
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)$45.84 $47.82 $46.09 $44.79