Slide 1: Second Quarter 2026
Second Quarter 2026 Since 1890
Slide 2: Disclosure Statement
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
Slide 3: Second quarter 2026 highlights
Second quarter 2026 highlights • Net income of $48.9 million, compared to $54.7 million for the prior quarter • HFI Loan growth of $286 million quarter-over-quarter (10% annualized) • Total loan originations (excluding HFS) were $1.26 billion • Core deposits declined by $59 million quarter-over-quar
Slide 4: Building value at Banner
Building value at Banner Building value for stakeholders … by focusing on core banking competency … that is sustainable through change events … and scalable with acquisition growth Banner Corporation Acquisition History Assets $16.6B 2019 Q4 2018 Q4 2015 Q4 2015 Q1 2014 Q2 Deposits $13.8B AltaPacifi
Slide 5: Building value at Banner
Building value at Banner Growing with … Scale in attractive markets Low-cost deposit franchise Commercially focused loan portfolio Conservative balance sheet Financially appealing opportunity Pacific Financial Corp Assets $1.3B Deposits $1.1B Loans $0.8B Offices 21 Expected close: Third Quarter 2026
Slide 6: Building value at Banner
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Growing revenue Take advantage of ideal geography Offer super community bank value proposition Guard and improve reputation
Slide 7: Growing revenue … in a good place since 1890
Growing revenue … in a good place since 1890 Population Estimate (millions) 2020 2030 Growth Washington 7.7 8.2 7%* Oregon 4.2 4.4 3% Idaho 1.8 2.2 19%* California 39.5 39.4 0% Region 53.3 54.2 2% * Among the fastest United States 331.6 347.0 5% growing in the country Source: U.S. Census Bureau Mood
Slide 8: Growing revenue … in an ideal geography
Growing revenue … in an ideal geography Powerful and diverse economic drivers From Banner’s Pacific Northwest base to … California Technology From Apple to Manufacturing from Silicon Valley to the Central Valley … Consumer the world’s 5th largest economy* Logistics Natural Resources Agriculture Trad
Slide 9: Growing revenue
Growing revenue Our super community bank value proposition Broad product offerings serving middle market, small business and consumer client base Decision-making as close to client as possible Delivery channels aligned to maximize tactical execution of strategic plan Community investment 9
Slide 10: Growing revenue
Growing revenue Guard and protect our reputation America’s Best Regional Banks Newsweek 2024, 2025 and 2026 Most Trustworthy Companies in America Newsweek 2023 - 2026 5-Star rating (highest category) BauerFinancial; 13+ years Outstanding CRA Rating FDIC 2021 and 2025 (two consecutive examination cyc
Slide 11: Growing revenue
Growing revenue Core revenue 1 Non-interest income 1 Quarter Last 12 Months Quarter Last 12 Months Quarter Quarter Ending Amount Amount Ending Amount Amount 06/30/26 $172M $680M 06/30/26 $18.4M $73.3M 12/31/09 $45M $177M 12/31/09 $6.6M $31.1M Other Fees Deposit Fees as % of Core Other Income Mortgag
Slide 12: Building value at Banner
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Protecting net interest margin Improve earning asset mix Improve funding mix Reduce deposit costs Maintain loan-to-deposit r
Slide 13: Protecting net interest margin
Protecting net interest margin Low-Cost Funding Mix Earning Asset Mix FHLB & Other 6/30/2026 6/30/2026 Certificates of Securities & Deposit Non-interest Int-bearing Loans Bearing Deposits Cost $ Millions Avg Bal (in bps) Interest Bearing and Non-interest 4,524 0 Savings Interest Bearing 7,751 177 Yi
Slide 14: Protecting net interest margin
Protecting net interest margin Focus on core deposits Manage deposit costs Quarter Last 12 Months Quarter Quarter Ending Balance % of Total Deposits Ending Amount Rate Amount Rate 06/30/26 $12,317M 89% 06/30/26 $45.6M 1.33% $194.0M 1.40% 12/31/09 $1,924M 50% 12/31/09 $17.7M 1.83% $83.2M 2.21% Non-co
Slide 15: Protecting net interest margin
Protecting net interest margin Deposits Net Non-core Funding Loans Dependence Banner Loan-to-Deposit Ratio Peer Median Peer Top Quartile Peer source: Group 1 ($10B and over), Bank Holding Company Performance Report (BHCPR), National Information Center, Federal Reserve System, Division of Banking Sup
Slide 16: Protecting net interest margin
Protecting net interest margin Maintain top quartile net interest margin Earning Asset Yield Quarter Last 12 Months Quarter Funding Cost Net Interest Margin 1 Ending Amount Rate 1 Amount Rate 1 06/30/26 $154M 4.13% $606M 4.06% 12/31/09 $39M 3.53% $146M 3.36% Net Interest Margin 1 Banner Peer Top Qua
Slide 17: Conservative investment portfolio
Conservative investment portfolio 12 Month Net Interest Income Sensitivity ($MM), % Change Investment Portfolio Composition ($2.95 billion) Ramp Ramp Shock Shock $ Millions $MM % Change $MM % Change Up 200 645,985 1.0% 653,349 2.1% 74% of investments are Agency MBS/CMO or AAA rated Up 100 644,867 0.
Slide 18: Building value at Banner
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Spending carefully Benefit from scale Control core operating expense 18
Slide 19: Spending carefully
Spending carefully Control core operating expense Other Quarter Last 12 Months Quarter Information Services Ending Amount Amount Occupancy 06/30/26 $106M $406M Compensation 12/31/09 $31M $132M Efficiency Ratio Banner Efficiency Ratio Peer Median Peer Top Quartile Peer source: Group 1 ($10B and over)
Slide 20: Building value at Banner
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Maintaining a moderate risk profile Embrace effective enterprise risk management Minimize non-performing assets Maintain app
Slide 21: Diversified loan portfolio
Diversified loan portfolio Loan Originations Loan Composition (commitments, $MM) 6/30/2026 CRE Breakout $MM % Owner Ooccuped CRE 1,230 10 % Investment Properties 1,744 14 % Small Balance CRE 1,167 10 % Total Comm CRE 4,141 34 % Construction Breakout $MM % Commercial 182 2 % Multifamily 503 4 % 1-4 F
Slide 22: Characteristics of highlighted loan segments
Characteristics of highlighted loan segments As of 6/30/26 Office 1 Retail 2 Healthcare 3 Multifamily Balances ($MM) $637.2 Balances ($MM) $1,550.7 Balances ($MM) $470.8 Balances ($MM) $855.9 Percent of Total Loans 5.3% Percent of Total Loans 13.0% Percent of Total Loans 3.9% Percent of Total Loans
Slide 23: Characteristics of highlighted loan segments
Characteristics of highlighted loan segments $ in Millions As of 6/30/26 Origination Year Portfolio Segment Balance % Owner Occupied 2026 2025 2024 2023 and earlier Office $637.2 46% $54.9 $70.7 $19.1 $492.5 Retail (CRE Secured) $1,436.1 56% $170.1 $183.1 $210.6 $872.2 Medical Office $190.3 45% $30.
Slide 24: Allowance for credit losses
Allowance for credit losses Allocation of Allowance for Credit Losses-Loans as of 6/30/26 Allowance ($000) % Coverage Non-performing % Coverage NPLs ($000) Commercial RE 42,167 1.02% 2,366 NM* Multifamily 9,859 1.15% 0 0% Construction 32,124 1.90% 12,648 254% 1-4 Family 19,478 1.25% 24,825 78% Comme
Slide 25: Maintaining a moderate risk profile
Maintaining a moderate risk profile Minimize non-performing assets NPAs REO Quarter Ending Amount % of TA Amount % of TA 06/30/26 $61M 0.36% $6M 0.03% 12/31/09 $292M 6.11% $78M 2.01% Real Estate Owned Non-performing Loans ACLL to Total Loans Banner Peer Top Quartile ACLL Peer Median Peer source: Gro
Slide 26: Building value at Banner
Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully Maintaining a moderate risk profile Employing capital wisely Employing capital wisely Maintain premium to tangible book value Pay appropriate dividends Prepare for future opportunities
Slide 27: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures $ Thousands Quarters Ended PRE-TAX PRE-PROVISION EARNINGS Jun 30, 2026 Mar 31, 2026 Jun 30, 2025 Income before provision for income taxes (GAAP) $ 60,154 $ 67,518 $ 56,007 Provision for credit losses 3,818 (796) 4,795 Pre-tax pre-provision earnings (non-GAAP) 63,9
Slide 28: Building value at Banner
Building value at Banner Building value for … Shareholders by delivering top quartile financial performance Clients by delivering super community bank service and products Employees by offering opportunity and reward Communities by providing capital and staying involved 28