Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $48 million or $1.39 per diluted share for Q2 2022, compared to $1.56 per share in Q2 2021 and $1.27 per share in Q1 2022 [8][22] - Pre-tax pre-provision earnings were $57.8 million for Q2 2022, up from $49.7 million in Q1 2022 [9] - Core revenue from operations increased 8% to $148.3 million compared to $137.6 million in Q1 2022 [10] - Return on average assets was 1.16% for Q2 2022 [10] Business Line Data and Key Metrics Changes - Core deposits increased by 5% compared to June 30, 2021, representing 95% of total deposits [11] - Core portfolio loan growth, excluding PPP loans, was $338 million or 3.7% for the quarter, with an annualized growth rate of 14.9% [15] - Commercial loans, excluding PPP, grew by nearly 9% or $94 million in Q2 2022, with balances now 5% higher than reported as of June 2021 [16] - The consumer mortgage portfolio grew by $150 million or 21% quarter-over-quarter, and home equity lines increased by $36 million or 8% [20] Market Data and Key Metrics Changes - Delinquent loans as of June 30 remained low at 0.19% of total loans, down from 0.21% in the prior quarter [14] - Adversely classified loans decreased to 1.63% of total loans, down from 1.95% in the linked quarter [14] - Nonperforming assets were low at $19.1 million, representing 0.12% of total assets [14] Company Strategy and Development Direction - The company is focused on the "Banner Forward" initiative, which aims to accelerate growth in commercial banking, deepen retail client relationships, and streamline back office operations [7][8] - The strategy includes expanding loan production and enhancing fee income through various initiatives [56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan growth despite economic uncertainties, expecting to maintain high single-digit growth rates [48] - The company is prepared for potential economic challenges, emphasizing a conservative approach to underwriting and asset quality management [61][21] Other Important Information - Banner has made significant commitments to support minority-owned businesses and local nonprofits, totaling over $1.5 million [12] - The company received recognition for client satisfaction, being ranked 1 bank in the Northwest by J.D. Power [12] Q&A Session Summary Question: Loan growth outlook and campaigns - Management confirmed that small business and residential mortgage campaigns are ongoing and expected to continue until the end of the month [34][36] Question: Provisioning and reserve ratio - Management indicated that provisioning is influenced by loan growth and economic conditions, with a conservative approach expected moving forward [38][39] Question: Deposit runoff behavior - Management noted that while some deposit outflows are anticipated due to rate sensitivity, the core deposit base remains resilient [42][45] Question: Loan growth expectations for the second half of the year - Management expects to maintain high single-digit loan growth, supported by strong pipelines in commercial and agricultural sectors [49][48] Question: M&A discussions and appetite - Management stated that while M&A activity has slowed, discussions continue, and they remain open to opportunities when market conditions are favorable [51][52] Question: Revenue opportunities from Banner Forward - Management anticipates sustained loan growth and fee income improvements as a result of the Banner Forward initiative [54][56] Question: Underwriting and portfolio maintenance - Management confirmed that underwriting practices remain conservative, with ongoing monitoring of credit quality [60][61] Question: Expense guidance and inflation pressures - Management acknowledged wage inflation pressures and adjusted core expense guidance to the high 80s to low 90 million range [68][70]

Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $44 million or $1.27 per diluted share for Q1 2022, compared to $1.33 per share in Q1 2021 and $1.44 per share in Q4 2021, reflecting a decline due to credit loss allowances and low interest rates [9][25] - Pre-tax pre-provision earnings were $49.7 million for Q1 2022, consistent with $49.5 million in Q1 2021, indicating stable core earnings power [10] - Core revenue from operations decreased by 3% to $137.6 million compared to $141.4 million in Q1 2021, primarily due to a decline in mortgage banking revenues [10][11] Business Line Data and Key Metrics Changes - Core deposits increased by 9% compared to March 31, 2021, representing 94% of total deposits, indicating strong client loyalty and funding position [11] - Loans outside of PPP increased by 5% year-over-year, with commercial and commercial real estate pipelines remaining solid [12][17] - Agricultural loans declined by $35 million quarter-over-quarter, reflecting seasonal trends, but were up 11.5% year-over-year [21] Market Data and Key Metrics Changes - Delinquent loans remained low at 0.21% of total loans, down from 0.43% a year ago, indicating strong credit quality [15] - Adversely classified loans decreased to 1.96% of total loans, down from 3.13% a year ago, reflecting improved asset quality [15][22] - Non-performing assets were low at $19.1 million, representing 0.11% of total assets, down from previous periods [15] Company Strategy and Development Direction - The "Banner Forward" initiative aims to accelerate growth in commercial banking, deepen retail client relationships, advance technology strategies, and streamline operations [7][8] - The company is focused on maintaining a moderate risk profile while enhancing client service and operational efficiency [23][34] - Future initiatives will focus on revenue growth, particularly in commercial and small business banking, with expectations for improved loan and deposit growth [56][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan growth outlook, anticipating upper single-digit growth rates by year-end, despite some seasonal headwinds [42] - Concerns were raised about macroeconomic factors such as inflation, commodity price increases, and supply chain disruptions, but the company maintains a strong credit profile [23][60] - The company expects to benefit from rising interest rates, with net interest margin anticipated to expand as the rate cycle progresses [28][34] Other Important Information - Banner Corporation has been recognized for client satisfaction and performance, being ranked the number one bank in the Northwest by JD Power for the sixth time [13][14] - The company has made significant commitments to support minority-owned businesses and local communities, reflecting its corporate social responsibility initiatives [12][13] Q&A Session Summary Question: Remaining costs for Banner Forward initiative - Management anticipates $1 million to $2 million in remaining implementation costs over the next two quarters [37] Question: Core expense levels - Core expenses for Q1 were reported at approximately $85.4 million, with expectations for mid-to-high $80 million range in future quarters [40] Question: Loan growth outlook - Management expects strong loan growth, with pipelines remaining solid and utilization rates anticipated to improve [42] Question: Competition and loan yields - Competition remains intense, with pricing pressures noted, but new loan yields are showing modest improvements [75][76] Question: Impact of M&A on customer attraction - Management is monitoring the effects of M&A activity in the region, but specific impacts on customer acquisition were not detailed [81]

Banner Corp. (NASDAQ:BANR) Q4 2021 Earnings Conference Call January 21, 2022 11:00 AM ET Company Participants Mark Grescovich - President and Chief Executive Officer Rich Arnold - Head, Investor Relations Jill Rice - Chief Credit Officer Peter Conner - Chief Financial Officer Conference Call Participants David Feaster - Raymond James Andrew Terrell - Stephens Andrew Liesch - Piper Sandler Kelly Motta - KBW Tim Coffey - Janney Operator Hello everybody, and thank you for joining Banner Corporation's Fourth Qu ...

Banner Corporation (NASDAQ:BANR) Q3 2021 Earnings Conference Call October 21, 2021 11:00 AM ET Company Participants Mark Grescovich – President and Chief Executive Officer Rich Arnold – Head-Investor Relations Jill Rice – Chief Credit Officer Peter Conner – Chief Financial Officer Conference Call Participants Jeff Rulis – D.A. Davidson Andrew Liesch – Piper Sandler David Feaster – Raymond James Andrew Terrell – Stephens Tim Coffey – Janney Operator Good morning and welcome to the Banner Corporation’s Third ...