On this page of StockholderLetter.com we present the latest annual shareholder letter from BANNER CORP — ticker symbol BANR. Reading current and past BANR letters to shareholders can bring important insights into the investment thesis.
Banner Corporation 2025 Annual Report Dear Fellow Shareholders: In a year when we marked the Bank s 135th year in business, we again delivered solid financial results, reflecting our continued ability to generate sustainable, long-term value for you, our shareholders. Our performance reaffirms the value of our super community bank strategy, which focuses on building client relationships, preserving a strong funding base, and delivering exceptional service while maintaining a moderate risk profile. At the broadest level, we retained our position as a top-tier performer among our regional peers by remaining focused on leveraging our strengths. Driving Shareholder Value President and CEO Mark Grescovich Deposit Portfolio 56% Interest-bearing transaction and savings accounts In 2025, we delivered strong performance and meaningful results for our shareholders. Revenue was $660.7 million, an increase of more than 8% compared to 2024, and net income increased 16% to $195.4 million, or $5.64 per diluted share. Tangible common shareholders equity per share (a non-GAAP measure) increased 14% from the prior year to $46.09. We remain committed to building long-term value, and it is reflected in our 59% cumulative total shareholder return over the past five years. In fact, mid-year the Board of Directors approved a 4% increase in the regular quarterly cash dividend. High-Quality Balance Sheet 33% Non-interest bearing deposits Total Deposits $13.74B 11% CDs Loan Portfolio 6% Consumer 13% Residential 35% CRE* Total Loans $11.72B 7% Multifamily 15% Construction 24% Commercial/Agriculture *CRE: 10% Owner Occupied 15% Investment Properties 10% Small Balance CRE Generating stable, on-balance-sheet liquidity remained fundamental to our success, giving us the flexibility to meet loan demand. At year-end, total deposits stood at $13.74 billion, with core deposits representing 89% of that. Our strong core deposit base contributed to our net interest margin ending the year above 4%. Both our core deposit levels and net interest margin outperformed most of our peers, reinforcing the strength of our franchise and our disciplined approach to funding. Our loan portfolio demonstrated the continuing resilience of the markets we serve. Net loans receivable totaled $11.56 billion, reflecting healthy demand across our footprint and underscoring the depth of our client relationships. While all loan segments made meaningful contributions to last year s production, the strongest demand was in small business lending, commercial real estate, and construction and land development. Additionally, credit quality remained strong, supported by stable credit metrics, continued low loan losses, and a robust capital position that provides resilience and flexibility for future growth. Employee-Driven Results Our engaged team and performance-driven culture continue to be key drivers of our operating performance. We made several key strategic investments across the organization last year that are delivering tangible returns and further strengthening the company for long-term success. Most noteworthy was implementing a new loan and deposit origination system, our largest technology improvement initiative in 20 years. Thanks to our dedicated and capable project team, the rollout was successful with no client disruption. By year-end, we were realizing efficiencies from the streamlined processes with an enhanced client experience driven by expedited account opening. Another important operating advancement was the implementation of several AI tools, primarily within existing platforms and software, supported by carefully designed governance structures to support responsible adoption of this technology, consistent with our moderate risk profile.
The team s relentless effort to meet the credit needs of both individual and business clients, as well as the local communities we serve, earned us an Outstanding rating from the FDIC in our 2025 Community Reinvestment Act (CRA) Performance Evaluation. Earning the highest possible rating for the second consecutive exam cycle was a direct result of our team s thoughtful, intentional focus to do the right thing for those we serve. In the past decade, fewer than four percent of all U.S. banks earned this top rating in two consecutive exams. Cash Dividend Per Share Select Financial Highlights $1.50 Our financial results are anchored in our commitment to fostering long-term client relationships, continually reinforcing a fortress balance sheet and maintaining a moderate risk profile. These principles remain central to our strategy and contributed to the company s 2025 performance, including these financial highlights: $1.76 $1.75 $1.64 $1.25 $1.00 $0.75 Assets grew to $16.35 billion. Revenue was $660.7 million, an increase of more than 8% from last year. Net income rose 16% to $195.4 million, or $5.64 per diluted share, for the year. $0.25 Return on average assets was a strong 1.21%. $0.00 Net interest margin, on a tax equivalent basis, was 3.96%. Total deposits were $13.74 billion, with core deposits representing 89% of total deposits. Net loans receivable increased to $11.56 billion. Non-performing assets were $51.2 million, or 0.31% of total assets. Additional Accomplishments Our financial strength, stability and exceptional customer service again earned us considerable national recognition last year reinforcing that our value proposition continues to resonate with clients and the communities we serve. Key highlights include: Highest in the Northwest region for customer satisfaction in the J.D. Power U.S. Retail Banking Satisfaction Study an incredible honor, as this recognition is based on the opinions of our clients. 100 Best Banks in America by Forbes for the ninth straight year recognition driven largely by our financial strength and outstanding service. Most Trustworthy Companies in America for the third year. This Newsweek study measures trust among consumers, employees and investors. Banner is the only bank headquartered in the Western U.S. to make the list. We especially appreciate this recognition because trust is the foundation of our business. Great Place to Work certification based solely on employee feedback. Eighty-six percent of our team rated Banner as a great place to work, nearly 20 points above the U.S. average. For 135 years, we ve taken a relationship-based approach to banking delivering outstanding service and value to our clients and it continues to serve us well. As we look ahead, we are confident the groundwork we ve laid positions us to build momentum in 2026 as we continue executing our super community bank strategy with discipline and purpose. Thank you for trusting us. Your confidence in our leadership, strategy and execution enables us to focus on delivering outstanding service to our clients and consistent, long-term value to our shareholders. Mark Grescovich President and Chief Executive Officer Banner Corporation and Banner Bank $1.92 $1.92 $1.94 $2.00 $0.50 2021 2022 2023 2024 2025 Each total above is for the year ended.
Directors Roberto R. Herencia Ellen R.M. Boyer Connie R. Collingsworth Margot J. Copeland Mark J. Grescovich Kevin F. Riordan Terry S. Schwakopf Millicent C. Tracey Paul J. Walsh (Chairman) John C. Pedersen Executive Officers John R. Layman Director and executive officer information is as of December 31, 2025. Mark J. Grescovich, President and Chief Executive Officer Robert G. Butterfield, EVP, Chief Financial Officer Mark Borrecco, EVP, Chief Banking Officer Janet M. Brown, EVP, Chief Information Officer James M. Costa, EVP, Chief Operating Officer Sherrey Luetjen, EVP, General Counsel, Secretary Karen Harrison, EVP, Community Banking Executive James P.G. McLean, EVP, Commercial Real Estate Lending Division Kayleen R. Kohler, EVP, Human Resources, Chief Diversity Officer Scott Newman, EVP, Chief Audit Executive Kenneth A. Larsen, EVP, Mortgage Banking Director Cynthia D. Purcell, EVP, Chief Strategy and Administration Officer James T. Reed, Jr., EVP, Commercial Banking Jill M. Rice, EVP, Chief Credit Officer Daniel E. Oxford, EVP, Chief Risk Officer Our Value Proposition Markets We Serve Connected. Knowledgeable. Responsive. Bellingham Wenatchee Bellevue Seattle Spokane It s not only what we do, it s how we do it with relentless effort. Tacoma Our Vision Statement Yakima We strive to be the bank of choice in the markets we serve. We are a leading regional bank recognized for building strong client relationships, innovative financial solutions and unwavering commitment to community. Our Mission Statement Vancouver Portland Tri-Cities Clarkston Lewiston Walla Walla Pendleton Eugene Coos Bay Boise Medford Banner Bank is a dynamic, full-service financial institution operating safely and profitably within a framework of shared integrity. Working as a team, we will deliver superior products and services to our valued clients. We will emphasize strong client relationships and a high level of community involvement. We will provide a culture which attracts, empowers, rewards and provides growth opportunities for our employees. Our success will build long-term shareholder value. Red Bluff Sacramento Values Do the Right Thing. This means we believe in: Honesty and Integrity Quality Mutual Respect Trust Teamwork Accountability Los Angeles Ontario San Diego
Corporate Headquarters 10 South First Avenue PO Box 907 Walla Walla, WA 99362-0265 509-527-3636 800-272-9933 Website: bannerbank.com Email: bannerbank@bannerbank.com Dividend Reinvestment and Stock Purchase Plan Subsidiaries Banner Corporation offers a dividend reinvestment program whereby shareholders may reinvest all or a portion of their dividends in additional shares of the Company s common stock. Information concerning this optional program is available from the Investor Relations Department or from Computershare Investor Services at 800-697-8924. Banner Bank Community Financial Corporation Annual Meeting of Shareholders Transfer Agent and Registrar Computershare Trust Company, N.A. 150 Royall St., Suite 101 Canton, MA 02021 Independent Public Accountants and Auditors Baker Tilly US, LLP Fox Tower 805 SW Broadway, Suite 1400 Portland, OR 97205 Special Counsel Breyer & Associates PC 8180 Greensboro Drive, Suite 785 McLean, VA 22102 Dividend Payments Dividend payments are reviewed quarterly by the board of directors and, if appropriate and authorized, typically would be paid in the months of February, May, August and November. To avoid delay or lost mail, and to reduce costs, we encourage you to request direct deposit of dividend payments to your bank account. 10 a.m. Pacific Time, Wednesday, May 20, 2026 The Annual Meeting of Shareholders will be conducted solely online via live webcast. You can attend by visiting: https://meetnow.global/M4KQTQY No password is required, though to vote or ask a question, shareholders must provide their unique control number. Investor Information Shareholders and others will find the Company s financial information, press releases and other information on the Company s website at https://investor.bannerbank.com. Banner Corporation Investor Relations PO Box 907 Walla Walla, WA 99362-0265 Or call 800-272-9933 to obtain a hard copy of these reports, including exhibits, without charge. To enroll in the Direct Deposit Plan, call Computershare Investor Services at 800-697-8924. Member FDIC SKU: 004CTR0090
2025 Banner Corporation 10-K
 • shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
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 • stockholder letter icon 4/9/2024 BANR Stockholder Letter
 • stockholder letter icon 4/9/2025 BANR Stockholder Letter
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BANR Shareholder/Stockholder Letter Transcript:

Banner Corporation
2025 Annual Report
Dear Fellow Shareholders:
In a year when we marked the Bank   s 135th year in business, we again delivered solid
financial results, reflecting our continued ability to generate sustainable, long-term
value for you, our shareholders. Our performance reaffirms the value of our super
community bank strategy, which focuses on building client relationships, preserving a
strong funding base, and delivering exceptional service while maintaining a moderate
risk profile. At the broadest level, we retained our position as a top-tier performer
among our regional peers by remaining focused on leveraging our strengths.
Driving Shareholder Value
President and CEO
Mark Grescovich
Deposit Portfolio
56% Interest-bearing
transaction and
savings accounts
In 2025, we delivered strong performance and meaningful results for our shareholders.
Revenue was $660.7 million, an increase of more than 8% compared to 2024, and net
income increased 16% to $195.4 million, or $5.64 per diluted share. Tangible common
shareholders    equity per share (a non-GAAP measure) increased 14% from the prior year
to $46.09. We remain committed to building long-term value, and it is reflected in our
59% cumulative total shareholder return over the past five years. In fact, mid-year the
Board of Directors approved a 4% increase in the regular quarterly cash dividend.
High-Quality Balance Sheet
33% Non-interest
bearing deposits
Total Deposits
$13.74B
11% CDs
Loan Portfolio
6% Consumer
13% Residential
35% CRE*
Total Loans
$11.72B
7% Multifamily
15% Construction
24% Commercial/Agriculture
*CRE:
10% Owner Occupied
15% Investment Properties
10% Small Balance CRE
Generating stable, on-balance-sheet liquidity remained fundamental to our success,
giving us the flexibility to meet loan demand. At year-end, total deposits stood at $13.74
billion, with core deposits representing 89% of that. Our strong core deposit base
contributed to our net interest margin ending the year above 4%. Both our core deposit
levels and net interest margin outperformed most of our peers, reinforcing the strength
of our franchise and our disciplined approach to funding.
Our loan portfolio demonstrated the continuing resilience of the markets we serve. Net
loans receivable totaled $11.56 billion, reflecting healthy demand across our footprint
and underscoring the depth of our client relationships. While all loan segments made
meaningful contributions to last year   s production, the strongest demand was in small
business lending, commercial real estate, and construction and land development.
Additionally, credit quality remained strong, supported by stable credit metrics,
continued low loan losses, and a robust capital position that provides resilience and
flexibility for future growth.
Employee-Driven Results
Our engaged team and performance-driven culture continue to be key drivers of
our operating performance. We made several key strategic investments across the
organization last year that are delivering tangible returns and further strengthening the
company for long-term success. Most noteworthy was implementing a new loan and
deposit origination system, our largest technology improvement initiative in 20 years.
Thanks to our dedicated and capable project team, the rollout was successful with
no client disruption. By year-end, we were realizing efficiencies from the streamlined
processes with an enhanced client experience driven by expedited account opening.
Another important operating advancement was the implementation of several AI
tools, primarily within existing platforms and software, supported by carefully designed
governance structures to support responsible adoption of this technology, consistent
with our moderate risk profile.

The team   s relentless effort to meet the credit needs of both individual and business clients,
as well as the local communities we serve, earned us an    Outstanding    rating from the FDIC in
our 2025 Community Reinvestment Act (CRA) Performance Evaluation. Earning the highest
possible rating for the second consecutive exam cycle was a direct result of our team   s
thoughtful, intentional focus to do the right thing for those we serve. In the past decade,
fewer than four percent of all U.S. banks earned this top rating in two consecutive exams.
Cash Dividend
Per Share
Select Financial Highlights
$1.50
Our financial results are anchored in our commitment to fostering long-term client
relationships, continually reinforcing a fortress balance sheet and maintaining a moderate risk
profile. These principles remain central to our strategy and contributed to the company   s 2025
performance, including these financial highlights:
$1.76
$1.75 $1.64
$1.25
$1.00
$0.75

Assets grew to $16.35 billion.

Revenue was $660.7 million, an increase of more than 8% from last year.

Net income rose 16% to $195.4 million, or $5.64 per diluted share, for the year.
$0.25

Return on average assets was a strong 1.21%.
$0.00

Net interest margin, on a tax equivalent basis, was 3.96%.

Total deposits were $13.74 billion, with core deposits representing 89% of total deposits.

Net loans receivable increased to $11.56 billion.

Non-performing assets were $51.2 million, or 0.31% of total assets.
Additional Accomplishments
Our financial strength, stability and exceptional customer service again earned us considerable
national recognition last year   reinforcing that our value proposition continues to resonate
with clients and the communities we serve. Key highlights include:

Highest in the Northwest region for customer satisfaction in the J.D. Power U.S. Retail
Banking Satisfaction Study   an incredible honor, as this recognition is based on the
opinions of our clients.

100 Best Banks in America by Forbes for the ninth straight year   recognition driven
largely by our financial strength and outstanding service.

Most Trustworthy Companies in America for the third year. This Newsweek study
measures trust among consumers, employees and investors. Banner is the only bank
headquartered in the Western U.S. to make the list. We especially appreciate this
recognition because trust is the foundation of our business.

Great Place to Work   certification   based solely on employee feedback. Eighty-six
percent of our team rated Banner as a great place to work, nearly 20 points above the
U.S. average.
For 135 years, we   ve taken a relationship-based approach to banking   delivering outstanding
service and value to our clients   and it continues to serve us well. As we look ahead, we are
confident the groundwork we   ve laid positions us to build momentum in 2026 as we continue
executing our super community bank strategy with discipline and purpose.
Thank you for trusting us. Your confidence in our leadership, strategy and execution enables
us to focus on delivering outstanding service to our clients and consistent, long-term value to
our shareholders.
Mark Grescovich
President and Chief Executive Officer
Banner Corporation and Banner Bank
$1.92 $1.92 $1.94
$2.00
$0.50
2021 2022 2023 2024 2025
Each total above is for the year ended.

Directors
Roberto R.
Herencia
Ellen R.M.
Boyer
Connie R.
Collingsworth
Margot J.
Copeland
Mark J.
Grescovich
Kevin F.
Riordan
Terry S.
Schwakopf
Millicent C.
Tracey
Paul J.
Walsh
(Chairman)
John C.
Pedersen
Executive Officers
John R.
Layman
Director and executive officer information is as of December 31, 2025.
Mark J. Grescovich,
President and
Chief Executive Officer
Robert G. Butterfield, EVP,
Chief Financial Officer
Mark Borrecco, EVP,
Chief Banking Officer
Janet M. Brown, EVP,
Chief Information Officer
James M. Costa, EVP,
Chief Operating Officer
Sherrey Luetjen, EVP,
General Counsel, Secretary
Karen Harrison, EVP,
Community Banking
Executive
James P.G. McLean, EVP,
Commercial Real Estate
Lending Division
Kayleen R. Kohler, EVP,
Human Resources,
Chief Diversity Officer
Scott Newman, EVP,
Chief Audit Executive
Kenneth A. Larsen, EVP,
Mortgage Banking Director
Cynthia D. Purcell, EVP,
Chief Strategy and
Administration Officer
James T. Reed, Jr., EVP,
Commercial Banking
Jill M. Rice, EVP,
Chief Credit Officer
Daniel E. Oxford, EVP,
Chief Risk Officer
Our Value Proposition
Markets We Serve
Connected. Knowledgeable. Responsive.
Bellingham
Wenatchee
Bellevue
Seattle
Spokane
It   s not only what we do, it   s how we do it   with relentless effort.
Tacoma
Our Vision Statement
Yakima
We strive to be the bank of choice in the markets we serve. We are a leading
regional bank recognized for building strong client relationships, innovative
financial solutions and unwavering commitment to community.
Our Mission Statement
Vancouver
Portland
Tri-Cities
Clarkston Lewiston
Walla Walla
Pendleton
Eugene
Coos Bay
Boise
Medford
Banner Bank is a dynamic, full-service financial institution operating safely
and profitably within a framework of shared integrity.
Working as a team, we will deliver superior products and services to our
valued clients. We will emphasize strong client relationships and a high
level of community involvement. We will provide a culture which attracts,
empowers, rewards and provides growth opportunities for our employees.
Our success will build long-term shareholder value.
Red Bluff
Sacramento
Values
   Do the Right Thing.    This means we believe in:
    Honesty and Integrity
    Quality
    Mutual Respect
    Trust
    Teamwork
    Accountability
Los Angeles
Ontario
San Diego

Corporate Headquarters
10 South First Avenue
PO Box 907
Walla Walla, WA 99362-0265
509-527-3636
800-272-9933
Website: bannerbank.com
Email: bannerbank@bannerbank.com
Dividend Reinvestment and Stock
Purchase Plan
Subsidiaries
Banner Corporation offers a dividend
reinvestment program whereby shareholders
may reinvest all or a portion of their dividends
in additional shares of the Company   s common
stock. Information concerning this optional
program is available from the Investor Relations
Department or from Computershare Investor
Services at 800-697-8924.
Banner Bank
Community Financial Corporation
Annual Meeting of Shareholders
Transfer Agent and Registrar
Computershare Trust Company, N.A.
150 Royall St., Suite 101
Canton, MA 02021
Independent Public Accountants
and Auditors
Baker Tilly US, LLP
Fox Tower
805 SW Broadway, Suite 1400
Portland, OR 97205
Special Counsel
Breyer & Associates PC
8180 Greensboro Drive, Suite 785
McLean, VA 22102
Dividend Payments
Dividend payments are reviewed quarterly by
the board of directors and, if appropriate and
authorized, typically would be paid in the months
of February, May, August and November. To
avoid delay or lost mail, and to reduce costs,
we encourage you to request direct deposit of
dividend payments to your bank account.
10 a.m. Pacific Time, Wednesday, May 20, 2026
The Annual Meeting of Shareholders will be
conducted solely online via live webcast.
You can attend by visiting:
https://meetnow.global/M4KQTQY
No password is required, though to vote or ask a
question, shareholders must provide their unique
control number.
Investor Information
Shareholders and others will find the Company   s
financial information, press releases and other
information on the Company   s website at
https://investor.bannerbank.com.
Banner Corporation
Investor Relations
PO Box 907
Walla Walla, WA 99362-0265
Or call 800-272-9933 to
obtain a hard copy of these
reports, including exhibits,
without charge.
To enroll in the Direct Deposit Plan,
call Computershare Investor Services at
800-697-8924.
Member FDIC
SKU: 004CTR0090

2025
Banner Corporation 10-K


shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
 

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