Banner Corporation Q2 FY2025 earnings call

• Mark thanks the team and highlights net profit, core earnings, and revenue growth. - Core deposit base is resilient at 89% of total deposits. - Loan growth of 5% and core deposits growth of 4% year-over-year. - Announced a core dividend of $0.48 per common share. - Received marketplace recognition including being named one of America's 100 Best Banks, etc. - Jill discusses strong loan originations, credit metrics stability, and loan portfolio trends. - Rob talks about earnings per share, net interest income, balance sheet items, net interest margin, and noninterest income/expense.

Banner Corporation reported a net profit available to common shareholders of $45.5 million or $1.31 per diluted share for the quarter ended June 30, 2025. Pretax pre-provision earnings excluding gains/losses on security sales, etc., were $62 million in Q2 2025 vs $52 million in Q2 2024. Revenue from core operations was $163 million in Q2 2025 vs $150 million in Q2 2024. Core deposits represent 89% of total deposits. Loans increased 5% and core deposits increased 4% year-over-year.

• Jill expects mid-single-digit growth rate for the year, with a pullback in Q3 from the 9% growth rate in Q2 but still positive. - Rob mentions loan yields expected to continue increasing 4-5 basis points per quarter if Fed remains on pause, and expects improvement in funding costs with normal seasonal deposit growth in Q3.

• Potential negative impact of policy changes/tariffs on West Coast economies, particularly burdening the small business sector and stressing consumers. - Economic uncertainty could negatively impact clients and communities.

Q: David Feaster of Raymond James asks about loan origination increase, pipeline, and funding.

A: Jill says origination increase pulled from pipeline, expects mid-single-digit growth for year; Rob talks about security cash flows, funding with FHLB advances, and expense base.

Q: Andrew Terrell of Stephens asks about sub debt redemption, expense base, and M&A.

A: Rob talks about sub debt cost and expense base trends; Mark says focused on organic business but will consider opportunistic M&A.

Q: Jeff Rulis of D.A. Davidson asks about loan growth pullback and margin outlook.

A: Jill says pullback from 9% growth rate; Rob talks about margin outlook with Fed on pause.

Q: Kelly Motta of KBW asks about margin, loan pricing, and loan growth regions.

A: Jill talks about loan pricing on term pieces and variable rate portfolio; Rob mentions loan yield expectations and Jill discusses regional loan growth differences