BANR

Looking back on regional banks stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Banner Bank (NASDAQ:BANR) and its peers. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results. Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ:BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah. Banner Bank reported revenues of $175.6 million, up 5.5% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ net interest income estimates. “Banner’s results for the second 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,” said Mark Grescovich, President and CEO. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $70.06. Read our full report on Banner Bank here, it’s free. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates. The market seems happy with the results as the stock is up 5.4% since reporting. It currently trades at $52.71. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income estimates. As expected, the stock is down 11% since the results and currently trades at $18.85. Read our full analysis of Banc of California’s results here. Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ:WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states. WesBanco reported revenues of $275.4 million, up 5.7% year on year. This result surpassed analysts’ expectations by 2.7%. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ net interest income estimates. The stock is flat since reporting and currently trades at $40.48. Read our full, actionable report on WesBanco here, it’s free. Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE:RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast. Renasant reported revenues of $278.6 million, up 3.4% year on year. This print lagged analysts’ expectations by 0.7%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ net interest income estimates and a narrow beat of analysts’ EPS estimates. The stock is down 7.3% since reporting and currently trades at $40.67. Read our full, actionable report on Renasant here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Banner (BANR) drew investor attention after reporting second quarter and year to date results that showed higher net interest income and net income, alongside an affirmed quarterly dividend of $0.52 per share. See our latest analysis for Banner. Banner’s recent earnings update and dividend affirmation have come alongside a 12.52% year to date share price return and a 64.32% total shareholder return over three years, indicating solid long term momentum. If Banner’s latest move has you thinking more broadly about where to put capital to work, it could be worth scanning 18 top founder-led companies for fresh ideas beyond the usual large caps. After Banner’s solid share price and total return track record, along with earnings that point to firmer profitability and a maintained dividend, the real issue now is whether the current price still offers an attractive upside versus risk. Banner's most followed narrative currently places fair value at $73.67 versus the last close of $70.29, implying a modest valuation gap that hinges on specific growth and profitability assumptions. Read the complete narrative. Want to see how this growth story is turned into a concrete price tag for Banner? The narrative leans on specific revenue, margin, and earnings paths that may surprise you. Result: Fair Value of $73.67 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Banner's concentration in commercial real estate and construction lending, combined with periods when loan growth outpaces deposits, could pressure credit quality and funding costs. Find out about the key risks to this Banner narrative. With both risks and rewards on the table for Banner, this is the moment to look at the underlying numbers yourself and move quickly to form a view using 3 key rewards and 1 important warning sign If Banner has sharpened your focus, do not stop here. Use the Simply Wall St Screener to quickly surface other stocks that could fit your goals next. Target resilient returns by checking companies that combine income potential with staying power through the 9 dividend fortresses. Spot potential value candidates early by searching for quality businesses trading below their estimated worth using the 49 high quality undervalued stocks. Prioritize capital preservation by focusing on companies with sturdier profiles through the 79 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BANR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Banner Corporation? Here are five stocks we like better. Banner beat year-over-year results in Q2 2026, with net income of $48.9 million and EPS of $1.43 versus $1.31 a year earlier. Core revenue rose nearly 6% to $172 million, and management said core earnings power improved despite higher provision and expense pressure versus Q1. Loan growth was strong and broad-based, with balances up $287 million in the quarter and origination volume up 45% from Q1. Banner still expects mid-single-digit loan growth for the full year, supported by strong pipelines in commercial and commercial real estate lending. Credit quality stayed generally stable, though non-performing assets rose after one condo construction project moved to non-accrual. Management said the issue appears isolated, while the allowance for credit losses remained steady at 1.35% of total loans. Banner (NASDAQ:BANR) reported higher year-over-year earnings and revenue from core operations in the second quarter of 2026, while management said loan demand remained broad-based and credit metrics were largely stable despite an increase in non-performing assets tied to one condo construction project. The Walla Walla, Washington-based banking company reported net income available to common shareholders of $48.9 million, or $1.43 per diluted share, for the quarter ended June 30, 2026. That compared with $1.31 per diluted share in the second quarter of 2025. Earnings per share declined from $1.60 in the first quarter of 2026, which Chief Financial Officer Rob Butterfield attributed primarily to a higher provision for credit losses, lower non-interest income and higher non-interest expense, partly offset by stronger net interest income. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? President and Chief Executive Officer Mark Grescovich said Banner’s “moderate risk profile” and investments to improve operating performance have positioned the company for the current environment. He pointed to pre-tax, pre-provision earnings excluding certain items as a measure of core earnings power. On that basis, second-quarter core earnings were $64.4 million, compared with $62.5 million a year earlier. Revenue from core operations totaled $172 million, up nearly 6% from $163 million in the second quarter of 2025. Banner reported a return on average assets of 1.20% for the quarter and a return on average tangible common equity of 12.27%. → 3 Photonics Companies Making Quantum Tech Possible Butterfield said net interest income increased $3.6 million from the prior quarter, reflecting a two-basis-point increase in the tax-equivalent net interest margin and a $129 million rise in average earning assets. The tax-equivalent net interest margin was 4.13%, compared with 4.11% in the first quarter. The increase in margin was driven by higher earning-asset yields, including a two-basis-point rise in loan yields, and an improved earning-asset mix. The average rate on new loan production was 6.53%, down from 6.69% in the prior quarter. Butterfield said loan yields should continue to rise modestly through year-end, but at a slower pace, estimating one to two basis points of quarterly improvement. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Funding costs partly offset the benefit from earning assets, as Banner used Federal Home Loan Bank advances to temporarily fund loan growth and seasonal deposit outflows. Deposit costs decreased two basis points from the prior quarter due to repricing in the certificate of deposit book. Butterfield said the CD book has “pretty much fully repriced” and that, absent Federal Reserve rate action, deposit costs are expected to remain relatively flat. Total deposits declined $51 million during the quarter, which management described as normal seasonal activity as clients used balances for tax payments. Core deposits fell $59 million and represented 89% of total deposits at quarter-end. Non-interest-bearing deposits were 33% of total deposits, unchanged from the previous quarter. Total borrowings rose $319 million, reflecting the temporary use of FHLB advances. Chief Credit Officer Jill Rice said loan originations were strong in the quarter and increased 45% from the linked quarter. Commercial originations rose 85%, construction originations increased 73% and consumer originations rose 55%. Loan balances grew by $287 million during the quarter, or nearly 10% on an annualized basis, despite continued commercial real estate payoffs and some elevated commercial-and-industrial payoffs. The main contributors to growth were: Commercial and industrial loans: up $152 million. Consumer loans: up $62 million, driven largely by new home equity lines of credit following a marketing campaign. Owner-occupied real estate: up $54 million. Rice said growth in C&I lending and owner-occupied real estate reflected a mix of new and expanded small business relationships as well as new middle-market commercial relationships across Banner’s footprint. She said non-owner-occupied balances also reflected new and deepened middle-market relationships, although growth was tempered by real estate sales and refinancing into the secondary market. Management said pipelines remain strong, particularly in commercial and commercial real estate lending. Rice said third-quarter originations and loan growth may decline from the second quarter based on historical patterns, but Banner still expects to finish the year with mid-single-digit loan growth. Rice said Banner’s credit metrics remained stable overall. Delinquent loans declined five basis points from the linked quarter to 0.51% of total loans, compared with 0.41% at June 30, 2025. Adversely classified assets declined $16.5 million from the prior quarter and represented 1.82% of total loans, down 19 basis points from March 31. Non-performing assets increased $8.9 million, which Rice said was the result of a single condo construction project moving to non-accrual. Even with the increase, non-performing assets represented 0.36% of total assets. Non-performing loans totaled $54.8 million, with the majority in one-to-four-family or other consumer-related credits that often involve lengthy resolution timelines. Rice said the condo project was a small California-market project that had experienced significant delays from the outset, and she said she does not expect it to remain in non-performing status for very long. She said she is watching the consumer segment most closely, including mortgages and home equity loans, given the strain from the higher-rate environment. The net provision for credit losses was $3.8 million, including $1.6 million for loans and $2.2 million for unfunded loan commitments. Loan losses totaled $577,000 and were partly offset by $476,000 in recoveries. The allowance for credit losses stood at 1.35% of total loans, compared with 1.37% in both the linked quarter and the year-earlier quarter. Non-interest income decreased $939,000 from the prior quarter. Butterfield said the decrease was mainly due to a prior-quarter $1.7 million increase in the valuation of financial instruments carried at fair value and lower gain-on-loan-sale income in the current quarter, partly offset by higher service fee income and the absence of a prior-quarter securities-sale loss. Non-interest expense increased $5.4 million from the first quarter. Butterfield said first-quarter expenses were lower than typical because some costs were delayed until the second quarter. Software expense rose $1.8 million, including a $924,000 non-recurring write-off of the company’s previous commercial loan origination system, which was recently replaced. Marketing expense increased $1.3 million, salary expense rose $800,000 due to annual salary increases, and legal expenses were up $764,000. The quarter also included $238,000 of merger-and-acquisition expense related to the pending Bank of the Pacific acquisition. Management said the new loan origination system is intended to streamline processes across consumer, small business and commercial lending and improve the speed at which loans move through the pipeline. Banner’s tangible common equity-to-assets ratio increased to 10.02%, and total shareholders’ equity rose $33 million during the quarter to about $2 billion. The company declared a core dividend of $0.52 per common share. Butterfield said Banner has paused capital actions outside of its core dividend until the Bank of the Pacific transaction closes. He said that does not necessarily change the total number of shares the company may repurchase for the year, but it pushes out the timing. Management said the acquisition remains on track to close in the third quarter. Grescovich said Bank of the Pacific brings a strong core deposit base and that the transaction would not prevent Banner from pursuing additional acquisitions. He said the company will remain opportunistic, citing its capital levels and core earnings power. Banner Corporation, through its principal subsidiary Banner Bank, operates as a regional commercial bank headquartered in Walla Walla, Washington. Founded in 2000 as a bank holding company, Banner traces its origins to community banking roots in Eastern Washington dating back to the late 19th century. Over the past two decades, the company has grown through both organic expansion and strategic acquisitions, establishing a strong presence throughout the Pacific Northwest. The company offers a comprehensive suite of financial products and services for individual and business clients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Banner Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Profit: $48.9 million or $1.43 per diluted share for Q2 2026. Core Earnings: $64.4 million for Q2 2026, up from $62.5 million in Q2 2025. Revenue from Core Operations: $172 million for Q2 2026, a 6% increase from $163 million in Q2 2025. Return on Average Assets: 1.2% for Q2 2026. Core Deposits: Represent 89% of total deposits. Dividend: Core dividend of $0.52 per common share. Loan Growth: Loan originations increased 45% compared to the linked quarter. Loan Loss Reserve: Coverage of 1.35% of total loans. Loan-to-Deposit Ratio: 87% at the end of the quarter. Net Interest Margin: 4.13% for the quarter, up from 4.11% in the previous quarter. Noninterest Income: Decreased by $939,000 from the prior quarter. Noninterest Expense: Increased by $5.4 million from the prior quarter. Warning! GuruFocus has detected 1 Warning Sign with GGG. Is BANR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banner Corp (NASDAQ:BANR) reported a net profit of $48.9 million or $1.43 per diluted share for Q2 2026, up from $1.31 per share in Q2 2025. Core earnings for Q2 2026 were $64.4 million, an increase from $62.5 million in Q2 2025. Revenue from core operations increased by nearly 6% year-over-year, reaching $172 million in Q2 2026. Loan originations increased significantly, with commercial originations up 85% and construction up 73% compared to the previous quarter. Banner Corp (NASDAQ:BANR) maintained a strong core deposit base, representing 89% of total deposits, and announced a core dividend of $0.52 per common share. Nonperforming assets increased by $8.9 million due to a single condo construction project moving to nonaccrual status. Total noninterest income decreased by $939,000 from the prior quarter, primarily due to lower gains on financial instruments and mobile income. Noninterest expense increased by $5.4 million from the prior quarter, driven by higher software, marketing, and legal expenses. The provision for credit losses was $3.8 million, driven by loan growth and changes in portfolio mix. Deposit costs remained relatively flat, with pressure on CD pricing and no significant repricing expected until potential Fed action. Q: What was the weighted average rate on new loans, and what is the outlook on loan yields considering the competitive pricing and rate environment? A: Robert Butterfield, CFO, stated that the average yield on loan production for the quarter was 6.53%. He noted that while there has been some back book repricing and new loans are coming in at higher yields, the pace of increase is slowing. He expects a 1 to 2 basis point increase in loan yields quarter over quarter through the end of the year. Q: Can you provide insights on deposit costs and the outlook assuming the Fed remains on hold? A: Robert Butterfield, CFO, mentioned that deposit costs were relatively flat throughout the quarter at 133 basis points. He noted that the CD book repricing has been beneficial, but it is now fully repriced. He expects deposit costs to remain relatively flat unless there is Fed action, which is not anticipated in the near future. Q: What are your thoughts on the expense run rate going forward, and what technology investments are being made? A: Robert Butterfield, CFO, explained that Q1 expenses were lower due to timing, while Q2 was higher due to delayed expenses. He highlighted investments in a new loan origination system, which is expected to improve efficiency and loan processing times. He anticipates expenses to stabilize, with some fluctuations due to timing. Q: How do you view the competitive landscape for deposits, and are customers expecting higher rates? A: Robert Butterfield, CFO, noted that while there is some pressure on CD pricing, it hasn't significantly affected core products. He mentioned that exception pricing is considered for various clients, but there hasn't been an increase in exception pricing for core products. Q: With the Pacific deal, what are your priorities for capital return, and is there any update on buybacks? A: Robert Butterfield, CFO, stated that alternative capital actions, aside from the core dividend, are on hold until the Bank of the Pacific deal closes. He mentioned that the timing of share repurchases might be pushed out, but the total number of shares to be repurchased for the year remains unchanged. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a resilient core deposit base, which represents 89% of total deposits, providing a stable funding foundation through economic cycles. Loan growth of nearly 10% annualized was fueled by broad-based demand across C&I, consumer, and owner-occupied real estate segments, despite elevated payoffs in commercial real estate. Management attributed improved loan pipeline velocity to the successful implementation of a new unified loan origination system that replaced three legacy platforms. Net interest margin expanded slightly to 4.13%, benefiting from a shift in earning asset mix and the repricing of the back-book loan portfolio. The company maintained a moderate risk profile, evidenced by a decline in adversely classified assets and stable credit metrics despite a single condo project moving to nonaccrual. Strategic positioning remains focused on the 'super community bank' model, emphasizing new middle-market relationship acquisition and deepening existing client ties. Management expects full-year net loan growth to land in the mid-single-digit range, assuming a seasonal moderation in originations during the third quarter. Net interest margin is projected to see a couple of basis points of expansion in Q3, driven by seasonal deposit inflows replacing higher-cost FHLB advances. Deposit costs are expected to remain relatively flat as the CD book has largely finished repricing, though management is monitoring increased competition for CD specials. The Bank of the Pacific acquisition is on track to close in the third quarter, which is expected to further strengthen the core deposit franchise and provide larger lending limits for acquired bankers. Capital allocation priorities remain focused on the core dividend and the pending acquisition, with share buybacks paused until the transaction closes. Noninterest expense was impacted by $924 thousand in nonrecurring costs related to the write-off of a legacy loan origination system. Marketing expenses were elevated in Q2 due to the timing of campaigns that were delayed from the first quarter, representing roughly two quarters of spend. Nonperforming assets increased by $8.9 million due to a single California condo construction project, though management anticipates a medium-term resolution. Management is closely monitoring the consumer segment, specifically home equity and mortgage products, for signs of strain caused by the 'higher for longer' interest rate environment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while new loan production yields averaged 6.53%, the pace of back-book repricing is slowing to approximately 1-2 basis points per quarter. Deposit costs decreased 2 basis points due to CD repricing, but management expects costs to level out as the CD book is now fully repriced at current market rates. The new unified system replaces separate consumer, small business, and commercial platforms, automating manual back-office processes. Management confirmed the investment is already improving 'pull-through' timing, allowing loans to move through the pipeline more quickly. Mark Grescovich stated the current transaction does not preclude further M&A, citing a 'scarcity' of quality partners on the West Coast. The company intends to remain opportunistic, leveraging its strong capital levels and balance sheet to pursue further non-organic growth.

Banner (BANR) reported $171.96 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.1%. EPS of $1.44 for the same period compares to $1.35 a year ago. The reported revenue represents a surprise of -0.48% over the Zacks Consensus Estimate of $172.79 million. With the consensus EPS estimate being $1.47, the EPS surprise was -2.04%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Banner performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net interest margin (tax equivalent): 4.1% versus 4.1% estimated by three analysts on average. Efficiency Ratio: 62.8% versus 60% estimated by three analysts on average. Total non-performing assets: $60.54 million versus the two-analyst average estimate of $53.88 million. Total non-performing loans: $54.82 million compared to the $47.66 million average estimate based on two analysts. Average Balance - Total interest-earning assets: $15.28 billion versus the two-analyst average estimate of $15.21 billion. Net charge-offs / Average loans receivable: 0% compared to the 0.1% average estimate based on two analysts. Net interest income: $153.74 million compared to the $153.17 million average estimate based on three analysts. Total non-interest income: $18.22 million versus the three-analyst average estimate of $19.15 million. Net interest income/rate spread (tax equivalent): $157.18 million versus the two-analyst average estimate of $156.69 million. Mortgage banking operations: $2.79 million versus $3.59 million estimated by two analysts on average. View all Key Company Metrics for Banner here>>> Shares of Banner have returned +5.7% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Banner Corporation (BANR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WALLA WALLA, Wash., July 22, 2026--(BUSINESS WIRE)--Banner Corporation (NASDAQ: BANR) ("Banner"), the parent company of Banner Bank, today reported net income of $48.9 million, or $1.43 per diluted share, for the second quarter of 2026, compared to $54.7 million, or $1.60 per diluted share, for the preceding quarter, and $45.5 million, or $1.31 per diluted share, for the second quarter of 2025. Net interest income was $153.7 million for the second quarter of 2026, compared to $150.2 million in the preceding quarter and $144.4 million for the second quarter a year ago. The increase in net interest income compared to the prior quarter primarily reflects one additional calendar day in the current quarter, net interest margin expansion and growth in average interest-earning assets, partially offset by higher interest expense associated with increased FHLB borrowings. The increase in net interest income compared to the second quarter a year ago primarily reflects lower funding costs and an increase in the average balance of interest-earning assets. Second quarter 2026 results included a $3.8 million provision for credit losses, compared to a $796,000 recapture of provision for credit losses in the preceding quarter and a $4.8 million provision for credit losses in the second quarter of 2025. Net income was $103.6 million, or $3.03 per diluted share, for the six months ended June 30, 2026, compared to net income of $90.6 million, or $2.61 per diluted share, for the six months ended June 30, 2025. Results for the six months ended June 30, 2026 include a $3.0 million provision for credit losses, a $1.2 million net loss on the sale of securities and a $1.5 million net increase in the fair value adjustments on financial instruments carried at fair value, compared to a $7.9 million provision for credit losses, a $3,000 net loss on the sale of securities and an $403,000 net increase in the fair value adjustments on financial instruments carried at fair value during the same period in 2025. Banner announced that its Board of Directors declared a regular quarterly cash dividend of $0.52 per share payable August 14, 2026, to common shareholders of record on August 4, 2026. "Banner’s results for the second 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," said Mark Grescovich, President and CEO. "Our earnings for the second quarter of 2026 benefited from robust loan growth. This benefit was offset by increased non-interest expense, which partially reflects investments in new software that we expect will enhance efficiency and support long-term growth. 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 benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter-end. For more than 135 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." "In addition, we recently announced our agreement to acquire Pacific Financial Corporation, the holding company for Bank of the Pacific," Grescovich continued. "Bank of the Pacific is 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. We look forward to welcoming their employees, clients and shareholders to Banner." At June 30, 2026, Banner, on a consolidated basis, had $16.59 billion in assets, $11.83 billion in net loans and $13.79 billion in deposits. Banner operates 135 full-service branch offices, including branches located in eight of the top 20 largest western United States Metropolitan Statistical Areas by population. Second Quarter 2026 Highlights Net interest margin, on a tax equivalent basis, was 4.13% for the current quarter, compared to 4.11% in the preceding quarter and 3.92% in the second quarter a year ago. Revenue was $172.0 million for the second quarter of 2026, compared to $169.3 million in the preceding quarter and increased 6% from $162.2 million in the second quarter a year ago. Net interest income was $153.7 million in the second quarter of 2026, compared to $150.2 million in the preceding quarter and $144.4 million in the second quarter a year ago. Mortgage banking operations revenue was $2.8 million for the second quarter of 2026, compared to $3.2 million in both the preceding quarter and the second quarter a year ago. Return on average assets was 1.20% for the second quarter of 2026, compared to 1.37% in the preceding quarter and 1.13% in the second quarter a year ago. Net loans receivable increased 2% to $11.83 billion at June 30, 2026, compared to $11.55 billion at March 31, 2026, and increased 3% from $11.53 billion at June 30, 2025. Loan originations were $1.26 billion for the second quarter of 2026, compared to $863.2 million in the preceding quarter and $966.6 million in the second quarter a year ago. Total deposits were $13.79 billion at June 30, 2026, compared to $13.84 billion at March 31, 2026 and $13.53 billion at June 30, 2025. Core deposits represented 89% of total deposits at June 30, 2026. Non-performing assets were $60.5 million, or 0.36% of total assets, at June 30, 2026, compared to $51.7 million, or 0.32% of total assets, at March 31, 2026, and $49.8 million, or 0.30% of total assets, at June 30, 2025. The allowance for credit losses - loans was $161.8 million, or 1.35% of total loans receivable, as of June 30, 2026, compared to $160.4 million, or 1.37% of total loans receivable, as of March 31, 2026, and $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025. Dividends paid to shareholders were $0.52 per share in the quarter ended June 30, 2026. Common shareholders’ equity per share increased 1% to $58.83 at June 30, 2026, compared to $58.06 at the preceding quarter end, and increased 9% from $53.95 at June 30, 2025. Tangible common shareholders’ equity per share* increased 2% to $47.82 at June 30, 2026, compared to $47.00 at March 31, 2026, and increased 11% from $43.09 at June 30, 2025. *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 Initiatives and Events On April 30, 2026, Banner entered into a definitive merger agreement to acquire Pacific Financial Corporation ("Pacific Financial"), the holding company for Bank of the Pacific, in an all-stock transaction. Under the terms of the agreement, at the effective time of the merger, shareholders of Pacific Financial will receive 0.2633 shares of Banner common stock for each Pacific Financial common share they own. The transaction is expected to close in the third quarter of 2026 and is subject to closing conditions, including Pacific Financial shareholder and regulatory approvals. Income Statement Review Net interest income was $153.7 million in the second quarter of 2026, compared to $150.2 million in the preceding quarter and $144.4 million in the second quarter a year ago. Net interest margin, on a tax equivalent basis, increased two basis points to 4.13% for the second quarter of 2026, compared to 4.11% in the preceding quarter, and increased 21 basis points from 3.92% in the second quarter a year ago. The net interest margin for the current quarter benefited from a higher average yield on interest-earning assets and lower borrowing costs. Interest income was $202.7 million in the second quarter of 2026, compared to $197.8 million in the preceding quarter and $200.3 million in the second quarter of 2025. Average yields on interest-earning assets increased by two basis points to 5.41% for the second quarter of 2026, compared to 5.39% for the preceding quarter, primarily reflecting loan growth and a slight increase in loan yields. Compared to the second quarter a year ago, average yields on interest-earning assets increased by one basis point from 5.40%. Average loan yields increased by two basis points to 6.09% in the second quarter of 2026, compared to 6.07% in the preceding quarter, and decreased from 6.12% in the second quarter a year ago. Interest expense was $48.9 million in the second quarter of 2026, compared to $47.6 million in the preceding quarter and $55.9 million in the second quarter a year ago. Total deposit costs decreased by two basis points to 1.33% in the second quarter of 2026, compared to 1.35% in the preceding quarter, and decreased by 14 basis points compared to 1.47% in the second quarter a year ago. The decrease in deposit costs in the current quarter compared to both the prior quarter and the same quarter a year ago was primarily due to lower pricing on certificates of deposit and money market accounts as well as an increase in the average balance of non-interest-bearing deposits. The decrease in deposit costs in the current quarter compared to the same quarter a year ago also reflected a decrease in the average rate paid on interest-bearing checking accounts and savings accounts. The average rate paid on borrowings decreased two basis points to 3.88% in the second quarter of 2026 from 3.90% in the preceding quarter and decreased by 59 basis points from 4.47% in the second quarter a year ago. The year-over-year decrease was primarily due to declines in both average interest rates paid and the average balance of higher-costing FHLB advances. The total cost of funding liabilities increased one basis point to 1.39% in the second quarter of 2026, compared to 1.38% in the preceding quarter, and decreased 21 basis points from 1.60% in the second quarter a year ago, primarily reflecting lower deposit and borrowing rates paid. A $3.8 million provision for credit losses was recorded in the current quarter (comprised of a $1.6 million provision for credit losses - loans and a $2.2 million provision for credit losses - unfunded loan commitments). This compares to a $796,000 recapture of provision for credit losses in the prior quarter (comprised of a $1.3 million provision for credit losses - loans and a $2.1 million recapture of provision for credit losses - unfunded loan commitments) and a $4.8 million provision for credit losses in the second quarter a year ago (comprised of a $4.2 million provision for credit losses - loans and a $588,000 provision for credit losses - unfunded loan commitments). The provision for credit losses recorded in the second quarter of 2026 primarily reflected loan growth, partially offset by improvements in credit quality and changes in portfolio mix. Total non-interest income was $18.2 million in the second quarter of 2026, compared to $19.2 million in the preceding quarter and $17.8 million in the second quarter a year ago. The decrease from the previous quarter was driven primarily by a $1.8 million unfavorable shift in fair value adjustments on financial instruments. In addition, the current quarter included a slight gain on the sale of securities, compared to net losses of $1.2 million in the preceding quarter, partially offsetting the decrease in non-interest income. Compared to the prior year quarter, the increase in non-interest income was primarily attributable to an increase in deposit fees and other service charges, partially offset by lower mortgage banking revenue. Total non-interest income was $37.4 million for the six months ended June 30, 2026, compared to $36.9 million for the same period a year earlier. Total non-interest expense was $108.0 million in the second quarter of 2026, compared to $102.6 million in the preceding quarter and $101.3 million in the second quarter of 2025. The increase from the previous quarter reflected a $1.7 million increase in salary and employee benefits, primarily reflecting increased loan commissions and normal salary and wage increases, a $2.0 million increase in information and computer data services, primarily due to increased computer software expenses, including $924,000 of expense related to the write-off of our previous commercial loan origination software, a $1.1 million increase in professional and legal expenses, primarily reflecting increased legal fees, and a $1.3 million increase in advertising and marketing expense, primarily reflecting the timing of direct mail marketing, printed media, and radio and television expenses. In addition, the current quarter includes $238,000 of merger related expenses. These increases were partially offset by a $1.4 million increase in capitalized loan origination costs, reflecting increased loan origination activity, primarily in the construction and land and one- to four-family residential loan categories. The increase compared to the same quarter a year ago primarily reflects increases in salary and employee benefits, information and computer data services expenses, and advertising and marketing expenses, partially offset by a decrease in occupancy and equipment costs. For the six months ended June 30, 2026, total non-interest expense was $210.6 million, compared to $202.6 million for the six months ended June 30, 2025. Banner’s efficiency ratio was 62.80% for the second quarter of 2026, compared to 60.60% in the preceding quarter and 62.50% in the same quarter a year ago. Banner’s adjusted efficiency ratio, a non-GAAP financial measure, was 61.30% for the second quarter of 2026, compared to 59.45% in the preceding quarter and 60.28% in the year-ago quarter. See, "Additional Financial Information - Non-GAAP Financial Measures" on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures. Balance Sheet Review Total assets were $16.59 billion at June 30, 2026, compared to $16.34 billion at March 31, 2026, and $16.44 billion at June 30, 2025. The increase compared to the prior quarter was primarily due to loan growth, partially offset by a reduction in securities. Securities and interest-bearing deposits held at other banks totaled $3.17 billion at June 30, 2026, compared to $3.24 billion at March 31, 2026 and $3.29 billion at June 30, 2025. The average effective duration of the securities portfolio was approximately 6.1 years and 6.6 years at June 30, 2026 and June 30, 2025, respectively. Total loans receivable increased 2% to $11.99 billion at June 30, 2026, compared to $11.71 billion at March 31, 2026, and increased 3% from $11.69 billion at June 30, 2025. Commercial real estate loans totaled $4.14 billion at June 30, 2026, an increase of 1% compared to $4.11 billion at March 31, 2026, and an increase of 4% from $3.97 billion at June 30, 2025. The increases from both periods reflected a combination of new loan production and the transfer of commercial construction loans to the commercial real estate portfolio upon completion of the construction phase. Commercial business loans totaled $2.58 billion at June 30, 2026, an increase of 6% compared to $2.43 billion at March 31, 2026, and an increase of 5% from $2.47 billion at June 30, 2025. The increases from both periods reflected new loan production. Multifamily real estate loans increased 7% to $855.9 million at June 30, 2026, compared to $798.2 million at March 31, 2026, and decreased 1% from $860.7 million at June 30, 2025. The increase from the prior quarter primarily reflected the transfer of multifamily construction loans to the multifamily real estate portfolio upon completion of the construction phase, while the decrease from the prior year reflected loan payoffs that exceeded transfers from the multifamily construction portfolio. Consumer loans increased 7% to $827.0 million at June 30, 2026, compared to $774.0 million at March 31, 2026, and increased 13% compared to $732.5 million at June 30, 2025. The increases from both periods primarily reflected new loan production and advances on home equity revolving lines of credit. Loans held for sale were $27.2 million at June 30, 2026, compared to $33.8 million at March 31, 2026, and $37.7 million at June 30, 2025. One- to four- family residential mortgage held for sale loans sold in the current quarter totaled $134.6 million, compared to $132.6 million in the preceding quarter, and $104.6 million in the second quarter a year ago. The decrease in loans held for sale at June 30, 2026, compared to both the preceding and prior year quarters, was primarily attributable to higher sales volumes of one- to four-family residential mortgage loans held for sale during the current quarter. Total deposits were $13.79 billion at June 30, 2026, compared to $13.84 billion at March 31, 2026, and $13.53 billion a year ago. Core deposits decreased to $12.32 billion at June 30, 2026, compared to $12.38 billion at March 31, 2026, and increased compared to $12.05 billion at June 30, 2025. The decrease compared to the preceding quarter primarily reflects a decrease in interest-bearing transaction and savings accounts, as well as money market accounts, due to normal seasonal activity as clients use deposit balances to pay taxes, partially offset by an increase in non-interest-bearing deposits. The increase compared to the prior year quarter reflects increases in interest-bearing transaction and savings accounts. Core deposits remained stable at 89% of total deposits at June 30, 2026, March 31, 2026 and June 30, 2025. Certificates of deposit increased 1% to $1.47 billion at June 30, 2026, compared to $1.46 billion at March 31, 2026, and were flat compared to $1.48 billion a year earlier. There were $320.0 million of outstanding FHLB advances at June 30, 2026, compared to no outstanding FHLB advances at March 31, 2026, and $565.0 million a year ago. The increase in FHLB advances during the current quarter is due to FHLB advances being temporarily used to fund the second quarter loan growth and seasonal deposit outflows. At June 30, 2026, off-balance sheet liquidity included additional borrowing capacity of $3.45 billion at the FHLB and $1.64 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million. At June 30, 2026, total common shareholders’ equity was $2.00 billion, or 12.05% of total assets, compared to $1.97 billion, or 12.03% of total assets at March 31, 2026, and $1.87 billion, or 11.35% of total assets at June 30, 2025. The increase in total common shareholders’ equity from March 31, 2026, was primarily attributable to a $31.0 million increase in retained earnings resulting from $48.9 million in net income, partially offset by the accrual of $17.9 million in cash dividends during the second quarter of 2026. At June 30, 2026, tangible common shareholders’ equity, a non-GAAP financial measure, was $1.63 billion, or 10.02% of tangible assets, compared to $1.59 billion, or 9.97% of tangible assets, at March 31, 2026, and $1.49 billion, or 9.28% of tangible assets, a year ago. See "Additional Financial Information - Non-GAAP Financial Measures" on the final two pages of this press release for a reconciliation of non-GAAP financial measures. Banner and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as "well-capitalized." At June 30, 2026, Banner’s estimated common equity Tier 1 capital ratio was 12.82%, its estimated Tier 1 leverage capital to average assets ratio was 11.79%, and its estimated total capital to risk-weighted assets ratio was 14.67%. These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports. Credit Quality The allowance for credit losses - loans was $161.8 million, or 1.35% of total loans receivable and 295% of non-performing loans, at June 30, 2026, compared to $160.4 million, or 1.37% of total loans receivable and 353% of non-performing loans, at March 31, 2026, and $160.5 million, or 1.37% of total loans receivable and 373% of non-performing loans, at June 30, 2025. The allowance ratio remained stable compared to both prior periods, reflecting consistent portfolio composition and credit performance. Coverage of non-performing loans remained strong at 295% at June 30, 2026, compared to 353% at March 31, 2026. The year-over-year decline from 373% at June 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 $15.1 million at June 30, 2026, compared to $12.9 million at March 31, 2026, and $12.8 million at June 30, 2025. Net loan charge-offs remained minimal at $101,000 in the second quarter of 2026, compared to net loan charge-offs of $1.2 million and $1.0 million in the preceding quarter and second quarter a year ago, respectively. Non-performing loans were $54.8 million at June 30, 2026, compared to $45.4 million at March 31, 2026, and $43.0 million at June 30, 2025. Despite the increase in non-performing loans, substandard loans declined to $218.4 million at June 30, 2026, from $235.0 million at March 31, 2026. Total non-performing assets were $60.5 million, or 0.36% of total assets, at June 30, 2026, compared to $51.7 million, or 0.32% of total assets, at March 31, 2026, and $49.8 million, or 0.30% of total assets, at June 30, 2025. Conference Call Banner will host a conference call on Thursday, July 23, 2026, at 8:00 a.m. PDT, to discuss its second quarter results. Interested investors may listen to the call live at www.bannerbank.com. Investment professionals are invited to dial (800) 715-9871 to participate in the call. A replay of the call will be available at www.bannerbank.com. About the Company Banner Corporation is a $16.59 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. 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 pending 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 Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Further, statements about the potential effects of Banner’s proposed merger with Pacific Financial 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 or such integration may be more difficult, time-consuming or costly than expected; (2) any of the anticipated benefits of the merger 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 or the announcement of the merger, and the parties may be challenged in retaining key relationships both during the pendency of the merger and following the completion of the merger if that occurs; (4) the parties may not meet expectations regarding the timing of the merger; (5) required regulatory approvals or the approval of Pacific Financial shareholders may not be obtained or such approvals may be more difficult, time-consuming or costly than expected; (6) there may be challenges in satisfying the other conditions to completion of the merger or the merger may fail to close for any other reason; (7) management’s attention may be diverted from ongoing business operations and opportunities due to the merger; (8) there may be potential negative impacts caused by the dilution resulting from Banner’s issuance of shares of Banner Common Stock in connection with the merger; and (9) other factors detailed in Banner’s filings with the SEC. Additional Information About the Pacific Financial Corporation Merger and Where to Find It This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval with respect to the proposed transaction. In connection with the proposed merger, a registration statement on Form S-4 was filed with the SEC and declared effective on June 16, 2026. The proxy statement of Pacific Financial and the prospectus of Banner included therein has been mailed to shareholders of Pacific Financial in connection with their votes on the merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS. The proxy statement/prospectus and other documents relating to the merger filed by Banner can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge through Banner’s investor relations website at https://investor.bannerbank.com by clicking on "SEC Filings" under the "Financials" tab. Alternatively, these documents, when available, can be obtained free of charge from Banner upon written request to Banner Corporation, Attn: Investor Relations, 10 South First Avenue, Walla Walla, Washington 99362 or by calling (509) 527-3636. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the proxy statement/prospectus. Participants in the Solicitation Banner, Pacific Financial, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Pacific Financial in connection with the proposed Merger under SEC rules. Information about the directors and executive officers of Banner and Pacific Financial is included in the proxy statement/prospectus for the proposed transaction filed with the SEC. These documents may be obtained free of charge in the manner described above under "Additional Information About the Pacific Financial Corporation Merger and Where to Find It." Information about such directors and executive officers of Banner and their direct or indirect interests, by security holdings or otherwise, can be found in Banner’s proxy statement in connection with its 2026 annual meeting of shareholders, as filed with the SEC on April 6, 2026, and other documents subsequently filed by Banner with the SEC. To the extent holdings of common stock by its directors or executive officers have changed since the amounts set forth in Banner’s proxy statement for its 2026 annual meeting of shareholders, such changes have been or will be reflected in filings with the SEC on Forms 3, 4, and 5. These documents can be obtained free of charge in the manner described above under "Additional Information About the Pacific Financial Corporation Merger and Where to Find It." These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports. 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 and 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260722116335/en/ Contacts MARK J. GRESCOVICH, PRESIDENT & CEOROBERT G. BUTTERFIELD, CFO(509) 527-3636

Banner (BANR) came out with quarterly earnings of $1.44 per share, missing the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.04%. A quarter ago, it was expected that this regional bank would post earnings of $1.38 per share when it actually produced earnings of $1.59, delivering a surprise of +15.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Banner, which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $171.96 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $162.15 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Banner shares have added about 12.9% since the beginning of the year versus the S&P 500's gain of 9.7%. While Banner has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Banner was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $181.36 million in revenues for the coming quarter and $6.17 on $716.34 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Savings and Loan is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Citizens Community Bancorp, Inc. (CZWI), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of +24.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Citizens Community Bancorp, Inc.'s revenues are expected to be $16.3 million, up 0.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Banner Corporation (BANR) : Free Stock Analysis Report Citizens Community Bancorp, Inc. (CZWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research