Banner Corporation · NASDAQ:BANR
Banner — Q3 2026 Earnings Presentation
28 slides from Banner's earnings presentation, Oct 21, 2026
Slide 1: Third Quarter 2026
T h i r d Q u a r t e r 2 0 2 6 Since 1890
Slide 2: Disclosure Statement
Disclosure Statement 1 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 outloo
Slide 3: Third quarter 2026 highlights
Third quarter 2026 highlights 2 • Net income of $47.7 million, compared to $48.9 million for the prior quarter • Completed the acquisition of Pacific Financial Corporation, the holding company of Bank of the Pacific, adding $766 million in total loans and $1.14 billion in deposits • Organic loan gro
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 Assets $18.1B Deposits $15.4B Loans $13.0B Offices 153 Employees 2,084 3 Acquisition History Assets
Slide 5: Building value at Banner: Pacific Financial Corp
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 18 4 Transaction closed September
Slide 6: Building value at Banner: Growing revenue
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 6 Source: U.S. Census Bureau Moody’s Analytics Forecasted (October 2025) 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% United States 331.6 347 5% * A
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 … Technology Manufacturing Consumer Logistics Natural Resources Agriculture Traditional, specialty crops, orchards, wineries, … California From Apple to from Silicon Valley to the Ce
Slide 9: Our super community bank value proposition
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 8
Slide 10: Guard and protect our reputation
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 cy
Slide 11: Growing revenue: Deposit fees as % of core revenue
$ M ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 20 25 -Q 4 0 5 10 15 20 25 30 0% 4% 8% 12% 16% 20% 24% 28% $ M ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20
Slide 12: Building value at Banner: Protecting net interest margin
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 $ Millions Avg Bal Cost (in bps) Non-interest 4,655 0 Interest Bearing 8,198 184 CDs 1,519 315 Subtotal Deposits 14,372 138 FHLB & Other 265 399 Total 14,637 143 12 32% 56% 10% 2% 78% 22% 32% 30% 38% Non-interest Bearing Certificates of Deposit Interest Bearing and Sav
Slide 14: Manage deposit costs; focus on core deposits
20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 20 25 -Q 4 —% 1% 2% 3% 4% 5% 6% 7% $ B ill io n s 20 07- Q 4 20 08-Q 4 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q
Slide 15: Net non-core funding dependence; loan-to-deposit ratio
20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 20 25 -Q 4 -20% -10% 0% 10% 20% 30% 40% 50% Protecting net interest margin Peer Median Peer source: Group 1 ($10B and over),
Slide 16: Maintain top quartile net interest margin
20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 20 25 -Q 4 0% 1% 2% 3% 4% 5% 6% 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 1
Slide 17: Conservative investment portfolio
Conservative investment portfolio 16 Assumes flat forward balance sheet, parallel and sustained shift in market rates ratably over a 12-month period (ramp) or immediate (shock); Base as of 9/30/26 CMO, $1,017, 32.8% MBS, $881, 28.4% CMBS, $394, 12.7% Municipal, $464, 15.0% ABS, $200, 6.4% Corp, $137
Slide 18: Building value at Banner: Spending carefully
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 17
Slide 19: Control core operating expense
$ M ill io n s 20 09- Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 20 25 -Q 4 0 20 40 60 80 100 20% 30% 40% 50% 60% 70% 80% 90% 100% 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4
Slide 20: Maintaining a moderate risk profile
Maintaining a moderate risk profile Embrace effective enterprise risk management Minimize non-performing assets Maintain appropriate loan loss reserve Maintain appropriate risk capital Building value at Banner Core banking competency Growing revenue Protecting net interest margin Spending carefully
Slide 21: Diversified loan portfolio
Commercial RE 35% Multifamily 7% Construction 14% Commercial 21% Agricultural 3% 1-4 Family 13% Consumer 7% Diversified loan portfolio 20 Loan Composition 9/30/2026 CRE Breakout $MM % Owner Ooccuped CRE 1,330 10 % Investment Properties 1,805 14 % Small Balance CRE 1,471 11 % Total Comm CRE 4,607 35
Slide 22: Characteristics of highlighted loan segments
21 Characteristics of highlighted loan segments (as of 9/30/26) Office 1 Balances ($MM) $709.2 Percent of Total Loans 5.5% Total Investor Office $361.5 Total Owner Occupied $347.7 Average Loan Size $0.8 Largest Loan Size $18.0 30 + days Past Due $0.6 Adversely Classified $1.7 Retail 2 Balances ($MM)
Slide 23: Characteristics of highlighted loan segments by origination and maturity
22 As of 9/30/26 Origination Year Portfolio Segment Balance % Owner Occupied 2026 2025 2024 2023 and earlier Office $709.2 49% $96.3 $72.5 $20.7 $519.8 Retail (CRE Secured) $1,519.1 57% $236.0 $196.2 $201.2 $885.8 Medical Office $237.7 45% $45.5 $45.6 $14.9 $131.7 Multifamily $913.3 0% $31.1 $26.7 $
Slide 24: Allowance for credit losses
Allowance for credit losses 23 $ M ill io n s ACL Provision 2.4 1.7 3.0 3.1 4.8 2.7 2.4 3.8 2.8 -0.8 20 24 -Q 2 20 24 -Q 3 20 24 -Q 4 20 25 -Q 1 20 25 -Q 2 20 25 -Q 3 20 25 -Q 4 20 26 -Q 1 20 26 -Q 2 20 26 -Q 3 $ M ill io n s $108 $167 $132 $142 $150 $156 $160 $160 $162 $172 1.16% 1.90% 1.48% 1.39%
Slide 25: Minimize non-performing assets
20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20 14 -Q 4 20 15 -Q 4 20 16 -Q 4 20 17 -Q 4 20 18 -Q 4 20 19 -Q 4 20 20 -Q 4 20 21 -Q 4 20 22 -Q 4 20 23 -Q 4 20 24 -Q 4 20 25 -Q 4 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% $ M ill io n s 20 09 -Q 4 20 10 -Q 4 20 11 -Q 4 20 12 -Q 4 20 13 -Q 4 20
Slide 26: Building value at Banner: Employing capital wisely
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 26 $ Thousands Quarters Ended PRE-TAX PRE-PROVISION EARNINGS Sep 30, 2026 Jun 30, 2026 Sep 30, 2025 Income before provision for income taxes (GAAP) $ 58,779 $ 60,154 $ 66,027 Provision for credit losses 2,824 3,818 2,670 Pre-tax pre-provision earnings (non-GAAP) 6
Slide 28: Building value at Banner: for shareholders, clients, employees, communities
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 27