Banner Corp (NASDAQ: BANR)

Banner Corp is a bank holding company incorporated in the State of Washington that wholly owns Banner Bank, a Washington-chartered commercial bank. The Bank conducts business from its main office in Walla Walla, Washington and, as of December 31, 2025, operated 135 branch offices and 15 loan production offices across Washington, Oregon, California, Idaho, Utah, and Nevada. Banner Corp is subject to regulation by the Federal Reserve, while Banner Bank is regulated by the Washington State Department of Financial Institutions-Division of Banks and the Federal Deposit Insurance Corporation. As of December 31, 2025, Banner Corp reported total consolidated assets of $16.35 billion, net loans of $11.56 billion, total deposits of $13.74 billion, and total shareholders’ equity of $1.95 billion. The Bank’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol “BANR.” Banner Corp’s primary business involves accepting deposits and originating loans, with a focus on commercial banking services and financial products for individuals, businesses, and public sector entities in its primary market areas.

Banner Corp generates revenue primarily through net interest income, which is the difference between interest income on interest-earning assets—mainly loans and investment securities—and interest expense on interest-bearing liabilities, composed primarily of client deposits and supplemented by Federal Home Loan Bank of Des Moines advances, other borrowings, and junior subordinated debentures. Additional revenue streams include non-interest income from deposit fees and other service charges, gains and losses on the sale of loans and securities, mortgage banking revenue from servicing fees and loan sales, and income from credit card interchange fees and other activity-based revenues. The company also earns fees from loan servicing activities, including servicing $3.14 billion of loans for others as of December 31, 2025. Revenue is further supported by treasury management services and targeted marketing campaigns designed to increase brand awareness and expand client relationships.

The company operates through the following segments: Banner Bank and Community Financial Corporation.

• Banner Bank: This segment provides a wide variety of commercial banking services and financial products to individuals, businesses, and public sector entities. It accepts deposits and originates loans in Washington, Oregon, California, Idaho, Utah, and Nevada. Banner Bank offers commercial business and commercial real estate loans, agriculture business loans, construction, land and land development loans, one- to four-family residential loans, multifamily real estate loans, U. S. Small Business Administration loans, and consumer loans. The segment also engages in mortgage banking operations through the origination and sale of one- to four-family residential loans. Banner Bank provides treasury management services, retirement savings plans, and digital banking capabilities including mobile and online banking. It offers deposit instruments such as non-interest-bearing checking accounts, interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit. The segment participates in secondary loan markets and sells newly originated residential loans to generate income and manage interest rate risk. Banner Bank maintains a diversified loan portfolio across product types, borrowers, and geographic locations within its market area.

• Community Financial Corporation: This segment is a residential construction lender located in Portland, Oregon and operates as a subsidiary of Banner Bank. It originates loans for residential construction and land development to professional home builders and developers. The segment focuses on land loans on improved or entitled land and construction loans that convert to long-term amortizing one- to four-family residential loans upon completion. Community Financial Corporation follows conservative underwriting policies for land loans while maintaining similar disbursement and monitoring procedures as construction loans. It regularly monitors its construction and land loan portfolios and adjusts lending based on market conditions and housing inventory. The segment also originates construction loans for commercial and multifamily real estate projects. Community Financial Corporation adheres to strict underwriting policies, disbursement procedures, and monitoring practices to manage risk. It maintains portfolio diversification with respect to sub-markets, price ranges, and borrowers to address the higher degree of risk associated with construction and land lending. The segment contributes to net interest income and profitability through its lending activities in select markets.

Banner Corp holds a competitive position as a regional bank in the Pacific Northwest and intermountain West, operating in a fragmented industry with competition from larger national banks, credit unions, and other regional and community banks. Its competitive advantage lies in its “super community bank” model, which combines the financial sophistication and broad product offerings of a regional bank with the responsiveness and service level of a community bank. This approach enables Banner Corp to deliver a compelling value proposition to middle market and small businesses, business owners, their families, and employees. The company’s strategy emphasizes high-quality asset origination, client acquisition, operational efficiency, talent retention, and technology investments. Banner Corp’s brand awareness, expanded through targeted marketing campaigns, supports its market presence and client relationship growth. Its focus on digital tools and streamlined branch delivery channels aligns with evolving client preferences for mobile and digital banking.

Banner Corp serves individuals, businesses, and public sector entities in its primary market areas of Washington, Oregon, California, Idaho, Utah, and Nevada. The Bank’s customer base includes small- to medium-sized businesses, agribusiness borrowers, middle market companies, and corporate borrowers with credit needs generally ranging from $3 million to $25 million. It also serves qualified owner occupants, real estate developers, and professional home builders. Consumer customers include those seeking home equity lines of credit, automobile, boat and recreational vehicle loans, and credit card accounts. Banner Corp provides services to public sector entities through treasury management and retirement savings plans. The company serves existing and future clients through its branch network, digital service capabilities, and marketing initiatives designed to increase brand awareness.