Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $45.1 million or $1.30 per diluted share for Q1 2025, compared to $1.09 per share for Q1 2024 and $1.34 per share for Q4 2024 [9] - Core earnings for Q1 2025 were $59 million, up from $53 million in Q1 2024, with revenue from core operations increasing to $160 million from $150 million year-over-year [11] - Return on average assets was 1.15% for Q1 2025, reflecting continued execution on the super community bank strategy [12] Business Line Data and Key Metrics Changes - Total loans increased by $84 million in Q1 2025, with a 5% year-over-year growth, while core deposits increased by 3% [13][21] - Delinquent loans rose to 0.63% of total loans, up from 0.49% at year-end and 0.36% in March 2024, indicating a manageable increase despite the higher interest rate environment [16] - Nonperforming assets increased to 0.26% of total assets, consisting of $39 million in nonperforming loans [19] Market Data and Key Metrics Changes - The agricultural sector remains a concern due to tariff implications, with the ag portfolio representing 3% of total loans [51][26] - The construction portfolio, including residential, commercial, and multifamily construction, remains acceptable at 15% of total loans [24] Company Strategy and Development Direction - The company aims to maintain a moderate risk profile while focusing on core deposit growth and client relationships [12][13] - Banner has been recognized as one of America's 100 best banks and continues to receive accolades for its business model and value proposition [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, anticipating a slowdown due to tariffs and market volatility, but remains optimistic about capturing market share [118][119] - The company plans to continue robust portfolio reviews and maintain close contact with borrowers to understand long-term implications of economic changes [27] Other Important Information - The company announced a core dividend of 48 cents per common share, reflecting strong capital ratios and tangible common equity growth of 13% year-over-year [13] - The company has a strong balance sheet and capital base, exceeding regulatory requirements [32] Q&A Session Summary Question: Margin expectations and components - Management noted that funding costs were flat throughout the quarter, with expectations for NIM expansion in Q2 if the Fed cuts rates [44] Question: Agricultural sector concerns - Management indicated ongoing caution regarding the agricultural sector due to tariff implications, expecting continued strain in the coming months [49] Question: Competitive dynamics and client demand - Management reported that pipelines continue to grow despite uncertainty, with clients eager to proceed once clarity is achieved [61] Question: Capital plans and stock buyback - Management emphasized maintaining the core dividend as a priority, with potential for stock buybacks under consideration [85] Question: Economic outlook and defense spending - Management expressed a pessimistic view on economic growth but noted opportunities for market share due to disruptions in the banking sector [118] Question: Changes in oversight on retail CRE book - Management confirmed no changes in oversight but maintains a thorough quarterly review process [136]

First Quarter 2025 Photo by Salvador Saldana Photo by Yvonne McDonald Photo by Maria DeVecchio Photo by Siti Alimah Disclosure Statement This presentation includes forward-looking statements. These statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner's general outlook for economic and other conditions. Additional forward-looking statements may be made in the ques ...

Banner (BANR) reported $160.19 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 10.8%. EPS of $1.29 for the same period compares to $1.22 a year ago.The reported revenue represents a surprise of +2.56% over the Zacks Consensus Estimate of $156.19 million. With the consensus EPS estimate being $1.23, the EPS surprise was +4.88%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Group 1: Earnings Performance - Banner reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and up from $1.22 per share a year ago, representing an earnings surprise of 4.88% [1] - The company posted revenues of $160.19 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.56%, compared to year-ago revenues of $144.55 million [2] - Over the last four quarters, Banner has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - Banner shares have declined approximately 10.4% since the beginning of the year, while the S&P 500 has decreased by 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.25 on revenues of $159.9 million, and for the current fiscal year, it is $5.23 on revenues of $645.54 million [7] Group 3: Industry Context - The Financial - Savings and Loan industry, to which Banner belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Financial Performance - Banner Corporation reported net income of $45.1 million, or $1.30 per diluted share, for Q1 2025, compared to $46.4 million, or $1.34 per diluted share, in the previous quarter and $37.6 million, or $1.09 per diluted share, in Q1 2024[2]. - Net interest income for Q1 2025 was $141.1 million, an increase from $140.5 million in the previous quarter and $133.0 million in Q1 2024, reflecting higher yields on interest-earning assets and lower funding costs[7]. - Non-interest income was $19.1 million in Q1 2025, down from $20.0 million in the previous quarter but up from $11.6 million in Q1 2024[12]. - Total revenue for Q1 2025 was $160,191,000, compared to $160,571,000 in Q4 2024 and $144,550,000 in Q1 2024[39]. - Net income for Q1 2025 was $45,135,000, compared to $46,391,000 in Q4 2024 and $37,559,000 in Q1 2024[39]. - Return on average assets was 1.15% for Q1 2025, consistent with the previous quarter and up from 0.97% in Q1 2024[11]. - Return on average equity for Q1 2025 was 10.17%, down from 10.35% in Q4 2024 but up from 9.14% in Q1 2024[39]. Deposits and Loans - Total deposits increased to $13.59 billion at March 31, 2025, up 3% from $13.16 billion at March 31, 2024[11]. - Core deposits represented 89% of total deposits at March 31, 2025, indicating a strong core funding position[4]. - Total deposits increased to $13.593 billion in Q1 2025, up 1% from $13.514 billion in Q4 2024 and 3% from $13.158 billion in Q1 2024[28]. - Total loans receivable increased to $11,438,796 thousand, a 1% increase from the prior quarter and a 5% increase year-over-year[30]. - Loans held for sale decreased to $24.5 million at March 31, 2025, from $32.0 million at December 31, 2024, and increased from $9.4 million a year ago[17]. - Commercial business loans decreased by 3% from the prior quarter, totaling $1,283,754 thousand, but increased by 2% year-over-year[30]. Credit Quality - The provision for credit losses was $3.1 million in Q1 2025, compared to $3.0 million in the previous quarter and $520,000 in Q1 2024, reflecting loan growth in the construction portfolio[10]. - The allowance for credit losses on loans was $157.3 million, or 1.38% of total loans receivable, as of March 31, 2025[11]. - Non-performing loans increased to $39.0 million at March 31, 2025, from $37.0 million at December 31, 2024, and $29.5 million a year ago[22]. - Total non-performing assets rose to $42,727 thousand, with a non-performing assets to total assets ratio of 0.26%[34]. - The total delinquent loans as a percentage of total loans receivable increased to 0.63% from 0.49% in the prior quarter[30]. Capital and Ratios - Total common shareholders' equity increased to $1.83 billion, or 11.34% of total assets, at March 31, 2025, compared to $1.77 billion, or 10.95% of total assets, at December 31, 2024[20]. - Banner's estimated common equity Tier 1 capital ratio was 12.60% at March 31, 2025, indicating strong capital levels[21]. - The consolidated Tier 1 leverage capital ratio improved to 11.22% in Q1 2025 from 11.05% in Q4 2024, indicating a stronger capital position[28]. - Total capital to risk-weighted assets ratio for Banner Corporation was 15.23%, significantly above the minimum requirement for "Well Capitalized" status[36]. - Common equity tier 1 capital to risk-weighted assets ratio for Banner Corporation was 12.60%, well above the 4.50% minimum requirement[36]. Operational Highlights - The company plans to host a conference call on April 17, 2025, to discuss its first quarter results[23]. - Banner Corporation operates a commercial bank with total assets of $16.17 billion, providing a full range of financial services[24]. - Forward-looking statements indicate potential risks including economic conditions, interest rate changes, and regulatory impacts[25]. - The efficiency ratio (GAAP) improved to 63.21% in Q1 2025 from 67.55% in Q1 2024[40]. - Tangible common shareholders' equity increased to $1,457,730 thousand in Q1 2025 from $1,398,147 thousand in Q4 2024 and $1,286,426 thousand in Q1 2024[41].

In its upcoming report, Banner (BANR) is predicted by Wall Street analysts to post quarterly earnings of $1.23 per share, reflecting an increase of 0.8% compared to the same period last year. Revenues are forecasted to be $156.19 million, representing a year-over-year increase of 8.1%.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's ea ...

Core Viewpoint - Banner (BANR) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Recent Performance of Banner - For the fiscal year ending December 2025, Banner is expected to earn $5.23 per share, reflecting a 4.4% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Banner has risen by 7.1%, indicating a positive trend in earnings estimates [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision characteristics [8][9].

Core Viewpoint - The Zacks Savings and Loan industry is facing challenges due to weak asset quality and subdued economic growth, impacting net interest income (NII) improvement. However, digitization efforts by companies like Banner Corp., Berkshire Hills Bancorp, and Heritage Financial Corp. are expected to provide some growth opportunities [1][2]. Industry Overview - The Zacks Savings and Loan industry consists of specialized U.S. banks focused on residential mortgage finance, offering various loans including residential, commercial, and vehicle loans [3]. - These institutions fund mortgages with savings insured by the FDIC and have historically been required to invest a significant portion of their assets in mortgages, a restriction lifted in 2019 [4]. Current Trends - **Worsening Asset Quality**: Economic uncertainty and inflation are affecting consumers' loan repayment abilities, leading to increased reserves and deteriorating asset quality metrics [5]. - **Fed Rate Cuts & Loan Demand**: The Federal Reserve's interest rate cuts in 2024 have not significantly improved loan demand, with expectations of modest lending growth in 2025 [6][7]. - **Digital Transformation**: Companies are transitioning to technology-driven operations to enhance competitiveness and profitability, despite initial cost increases [8][9]. Industry Performance - The Zacks Savings and Loan industry has outperformed the Zacks Finance Sector and the S&P 500, with a collective gain of 20% over the past year compared to 10.1% for the S&P 500 [14]. - The industry's current trailing 12-month price-to-tangible book ratio (P/TBV) is 1.78X, below the five-year median of 1.95X, indicating a discount compared to the broader market [16][17]. Company Highlights - **Banner Corp**: A $16.2 billion bank holding company with a diversified loan portfolio and a conservative $3.43 billion investment portfolio. Non-performing assets were $39.6 million (0.24% of total assets) as of Dec 31, 2024, with earnings estimates indicating growth of 4.4% and 8.5% for 2025 and 2026, respectively [18][21][22]. - **Berkshire Hills Bancorp**: A community bank with a market capitalization of $1.2 billion, showing organic growth with a revenue CAGR of 2.7% and loan CAGR of 3.8% from 2020 to 2024. Non-performing assets were $26.7 million in 2024, with earnings estimates indicating increases of 13.5% and 50.1% for 2025 and 2026, respectively [23][24]. - **Heritage Financial**: A full-service commercial bank with a market capitalization of $804.6 million, showing a NII CAGR of 45.2% from 2019 to 2024. Non-performing assets were $5.2 million in 2024, with earnings estimates indicating growth of 9.7% and 12.5% for 2025 and 2026, respectively [25][26][27].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________to__________ Commission File Number 0-26584 BANNER CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Core Viewpoint - Banner (BANR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Banner suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating [9][10]. Recent Performance of Banner - Analysts have raised their earnings estimates for Banner, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $5.17 per share, reflecting a year-over-year increase of 3.2% [8]. - Over the past three months, the consensus estimate for Banner has increased by 6.7% [8].