Slide 1: Building Value at Banner: Acquisition of Siuslaw Financial Group, Inc.
_Sae NNER STUSLAW (CORPORATION FINANCIAL GROUP Building Value at Banner Acquisition of Siuslaw Financial Group, Inc. Investor Presentation August 7, 2014
Slide 2: Safe Harbor Page
Safe Harbor Page ‘When usedin thie presentation endin other doctmentfiled with or Fumishedto the Securities andExchange Commission (the “SEC"), in press releases or other pubic shareholder communications orin ora statementsmade withthe approval ofan authorized executive officer, the words or phrases
Slide 3: Transaction Highlights
Transaction Highlights + Strong $309 million deposit franchise with 0.13% cost of funds (Q2 2014) + Consistent earnings performance at ~ 1.0% ROAA + Builds presence in Eugene and Lane County + Complements recent acquisition of nearby Oregon branches + Adds talented relationship bankers in Willamette
Slide 4: Excellent Fit
Excellent eee Fit Building Value at Banner
Slide 5: Expanded Regional Presence
Expanded Regional Presence (Oregon Deposits of June 30, 2014 IUS. Bank NA $_ 12071085 {Cmpgua Banke 681,069 2 [Wet Fargo Bank NA. 126 | 9.434782 Wels Fargo Bank, NA A 654,468 3 [Bank of America, 72 [ssxss91 [Us Bank NA is 619322 4 [mpqua Bank bs [5987.03 [Suuslaw Bank (Barner) | 10 303680 [729 5 | M
Slide 6: Siuslaw Financial Group, Inc.
Siuslaw Financial Group, Inc. ncial Met: 0/14 ($ 000’s) ar-old community bank focused on commercial Assets $359,964 ROA? 0.96% — Net Loans Cost ofFunds' 0.15% + Deep customer relationships — 7 + Consistent earnings performance with 1.04%retum on DePosits «309,371 -EiciencyRatiot 75.14% average asset
Slide 7: Transaction Overview
Transaction Overview + Approximately 90% stock / 10% cash consideration mix + Fixed exchange ratio of 0.32231 BANR shares and $1.41622 cash per onsideration SFGP share + Aggregate value of $57.465 million based on August 7*BANR closing price of $39.14 per share 150% of Tangible Book Value 16.9X TIM
Slide 8: Financial Overview
Financial Overview * Approximately 20% of SFGP’s 2014 projected non- interest expense 75% achievement in 2015, 100% achievement in 2016+ ing: PPE GLOUR AUS | * One-time costs: ~$2.8 million after-tax TTR * Loan portfolio: —$5.4 million or ~2.0% of gross loans and Accownthas + Fixed assets: +$2.0 mil
Slide 9: Executive Summary
Executive Summary e@ Adds $309 million in low cost deposits from attractive markets + Provides entry into I-5 corridor Willamette Valley market * Provides 10 branches with meaningful market share in Lane County * Complements existing Portland operations and 6 branches recently acquired in Western Or