Financial Performance Highlights - Banner Corporation reported net income of $45.5 million for the second quarter of 2025, slightly up from $45.1 million in the previous quarter[7] - The return on average assets was 1.13%, and the return on average equity was 9.92%, compared to 1.15% and 10.17% respectively in the prior quarter[7] - Net interest margin (tax equivalent) remained steady at 3.92%[7] - The efficiency ratio (GAAP) decreased by 71 basis points to 62.50%, and the adjusted non-GAAP efficiency ratio decreased by 190 basis points to 60.28%[7] Loan Portfolio and Credit Quality - HFI Loan growth reached $547 million year-over-year (5%) and $252 million quarter-over-quarter (9% annualized)[7] - Total loan originations (excluding HFS) amounted to $967 million[7] - The allowance for credit losses was $4.8 million, driven by loan growth and risk rating downgrades; the allowance for credit losses to total loans was 1.37%[7] - Non-performing assets remained low at 0.30% of total assets, a slight increase of 4 basis points from the last quarter[7] Balance Sheet and Capital Management - As of the reporting period, Banner Corporation's assets totaled $16.4 billion, deposits were $13.5 billion, and loans amounted to $11.7 billion[9] - The company announced a dividend of $0.48 per share to be paid in August 2025[7] Strategic Focus and Market Position - Banner Corporation emphasizes its core banking competency, revenue growth, net interest margin protection, careful spending, and moderate risk profile[8, 10] - The company operates in a region with strong population growth, particularly in Idaho (20% projected growth)[11]

Financial Performance - Net income was $45.1 million, compared to $46.4 million for the prior quarter[6] - HFI Loan growth of $570 million year-over-year, representing a 5% increase[6] - Net interest margin (tax equivalent) increased by 10 basis points to 3.92%[6] - Return on average assets was 1.15%, and return on average equity was 10.17%, compared to 1.15% and 10.35% respectively, for the prior quarter[6] Balance Sheet and Loan Portfolio - Total assets of Banner Corporation are $16.2 billion, with deposits of $13.6 billion and loans of $11.5 billion[8] - Total loan originations (excluding HFS) were $536 million[6] - Allowance for credit losses – loans was 1.38% of total loans, with a $3.1 million provision for credit losses[6] - Non-performing assets remained low at 0.26% of total assets, up 2 basis points from last quarter[6] Revenue and Efficiency - Core revenue was $160 million for the quarter and $624 million for the last 12 months[23] - Noninterest income was $18.8 million for the quarter and $74.4 million for the last 12 months[23] - Efficiency ratio (GAAP) increased 126 basis points to 63.21%; adjusted, non-GAAP efficiency ratio increased 144 basis points to 62.18%[6] Strategic Focus - The company aims to build value for stakeholders by focusing on core banking competency, sustainable growth, and scalable acquisitions[7] - The company emphasizes growing revenue by taking advantage of its geography and value proposition[9]