# BANNER CORP (BANR)

Informational only - not investment advice.

CIK: 0000946673
SIC: 6022 State Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=946673
Filing source: https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0000946673-26-000009 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000946673.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 702,023,000 USD | 2025 | verified |
| Net income | 195,382,000 USD | 2025 | verified |
| Assets | 16,354,488,000 USD | 2025 | verified |
| Free cash flow | 247,950,000 USD | 2025 | computed |
| Net margin | 27.83% | 2025 | computed |
| Operating margin | 10.37% | 2025 | computed |
| Revenue YoY | +7.08% | 2025 | computed |
| ROE | 10.04% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | BANR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 27.8% | 21.9% | 80 | 149 |
| Revenue growth | 7.1% | 6.0% | 56 | 148 |
| FCF margin | 35.3% | 23.8% | 86 | 133 |
| ROE | 10.0% | 9.6% | 56 | 149 |
| ROA | 1.2% | 1.1% | 68 | 149 |
| Liabilities / equity | 7.40 | 8.04 | 34 | 149 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 702023000 | USD | 2025 | 2026-02-25 |
| Net income | 195382000 | USD | 2025 | 2026-02-25 |
| Assets | 16354488000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000946673.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 359,612,000 | 374,449,000 | 413,370,000 | 471,473,000 | 466,360,000 | 445,731,000 | 450,916,000 | 577,891,000 | 655,590,000 | 702,023,000 |
| Net income | 85,385,000 | 60,776,000 | 136,515,000 | 146,278,000 | 115,928,000 | 201,048,000 | 195,378,000 | 183,624,000 | 168,898,000 | 195,382,000 |
| Operating income | 76,225,000 | 85,200,000 | 83,993,000 | 81,941,000 | 98,616,000 | 96,416,000 | 75,255,000 | 44,409,000 | 66,888,000 | 72,814,000 |
| Diluted EPS | 2.52 | 1.84 | 4.15 | 4.18 | 3.26 | 5.76 | 5.67 | 5.33 | 4.88 | 5.64 |
| Operating cash flow | -75,818,000 | 346,702,000 | 30,775,000 | 149,609,000 | 125,386,000 | 301,578,000 | 238,051,000 | 257,199,000 | 293,187,000 | 257,464,000 |
| Capital expenditures | 16,239,000 | 12,244,000 | 23,094,000 | 24,700,000 | 12,803,000 | 10,493,000 | 14,724,000 | 14,651,000 | 13,747,000 | 9,514,000 |
| Dividends paid | 28,282,000 | 65,759,000 | 59,280,000 | 56,074,000 | 94,078,000 | 57,621,000 | 61,078,000 | 66,765,000 | 66,733,000 | 67,528,000 |
| Share buybacks | 50,772,000 | 31,045,000 | 34,401,000 | 53,922,000 | 31,775,000 | 56,528,000 | 10,960,000 | 0.00 | 0.00 | 31,575,000 |
| Assets | 9,793,668,000 | 9,763,209,000 | 11,871,317,000 | 12,604,031,000 | 15,031,623,000 | 16,804,872,000 | 15,833,431,000 | 15,670,391,000 | 16,200,037,000 | 16,354,488,000 |
| Liabilities | 8,487,958,000 | 8,490,583,000 | 10,392,722,000 | 11,009,997,000 | 13,365,359,000 | 15,114,545,000 | 14,376,999,000 | 14,017,700,000 | 14,425,711,000 | 14,408,191,000 |
| Stockholders' equity | 1,305,710,000 | 1,272,626,000 | 1,478,595,000 | 1,594,034,000 | 1,666,264,000 | 1,690,327,000 | 1,456,432,000 | 1,652,691,000 | 1,774,326,000 | 1,946,297,000 |
| Cash and cash equivalents | 247,719,000 | 261,200,000 | 272,196,000 | 307,735,000 | 1,234,183,000 | 2,134,300,000 | 243,062,000 | 254,464,000 | 501,858,000 | 422,640,000 |
| Free cash flow | -92,057,000 | 334,458,000 | 7,681,000 | 124,909,000 | 112,583,000 | 291,085,000 | 223,327,000 | 242,548,000 | 279,440,000 | 247,950,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 23.74% | 16.23% | 33.02% | 31.03% | 24.86% | 45.11% | 43.33% | 31.77% | 25.76% | 27.83% |
| Operating margin | 21.20% | 22.75% | 20.32% | 17.38% | 21.15% | 21.63% | 16.69% | 7.68% | 10.20% | 10.37% |
| Return on equity | 6.54% | 4.78% | 9.23% | 9.18% | 6.96% | 11.89% | 13.41% | 11.11% | 9.52% | 10.04% |
| Return on assets | 0.87% | 0.62% | 1.15% | 1.16% | 0.77% | 1.20% | 1.23% | 1.17% | 1.04% | 1.19% |
| Liabilities / equity | 6.50 | 6.67 | 7.03 | 6.91 | 8.02 | 8.94 | 9.87 | 8.48 | 8.13 | 7.40 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/BANR/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000946673.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.43 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.61 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.15 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 39,591,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 149,254,000 |  | 1.33 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 154,532,000 | 42,624,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 |  | 42,624,000 |  | reported discrete quarter |
| 2024-Q1 | 2024-03-31 | 156,475,000 |  | 1.09 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 37,559,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 161,191,000 |  | 1.15 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 39,795,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 168,338,000 |  | 1.30 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 169,586,000 | 46,391,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 |  | 46,391,000 |  | reported discrete quarter |
| 2025-Q1 | 2025-03-31 | 168,677,000 |  | 1.30 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 45,135,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 175,373,000 |  | 1.31 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 45,496,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 179,065,000 |  | 1.54 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 178,908,000 | 51,249,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-31 |  | 51,249,000 |  | reported discrete quarter |
| 2026-Q1 | 2026-03-31 | 173,703,000 |  | 1.60 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 54,716,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 178,389,000 |  | 1.43 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from BANR's latest 10-K: [/company/BANR/business/](/company/BANR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from BANR's latest 10-K: [/company/BANR/risk-factors/](/company/BANR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/946673/000094667326000172/banr-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding our financial condition and results of operations.  The information contained in this section should be read in conjunction with the Consolidated Financial Statements and accompanying Selected Notes to the Consolidated Financial Statements contained in Item 1 of this Form 10-Q.

Executive Overview

Banner is a bank holding company incorporated in the State of Washington, which wholly owns its subsidiary bank, Banner Bank. The Bank is a Washington-chartered commercial bank that conducts business from its main office in Walla Walla, Washington, and as of June 30, 2026, it had 135 branch offices and 15 loan production offices located in Washington, Oregon, California, Idaho, Utah and Nevada.  Banner is subject to regulation by the Federal Reserve.  The Bank is subject to regulation by the Washington State Department of Financial Institutions – Division of Banks (the DFI) and the Federal Deposit Insurance Corporation (the FDIC).  As of June 30, 2026, we had total consolidated assets of $16.59 billion, total loans of $11.99 billion, total deposits of $13.79 billion and total shareholders’ equity of $2.0 billion.

The Bank is a regional bank that offers a wide variety of commercial banking services and financial products to individuals, businesses and public sector entities in its primary market areas.  The Bank’s primary business is that of traditional banking institutions, accepting deposits and originating loans in locations surrounding our offices.  The Bank is also an active participant in secondary loan markets, engaging in mortgage banking operations through the origination and sale of one- to four-family residential loans.  Lending activities include commercial business and commercial real estate loans, agriculture business loans, construction and land development loans, one- to four-family and multifamily residential loans, SBA loans and consumer loans.

The Company’s successful execution of its super community bank model and strategic initiatives has delivered solid core operating results and profitability over the last several years. The Company’s longer term strategic initiatives continue to focus on originating high quality assets and client acquisition, which we believe will continue to generate strong revenue while maintaining the Company’s moderate risk profile.

Second Quarter 2026 Financial Highlights

•Net interest margin, on a tax equivalent basis, was 4.13% for current quarter, compared to 4.11% in the preceding quarter.

•Revenue was $172.0 million for the second quarter of 2026, compared to $169.3 million in the preceding quarter.

•Net interest income was $153.7 million in the second quarter of 2026, compared to $150.2 million in the preceding quarter.

•Mortgage banking operations revenue was $2.8 million for the second quarter of 2026, compared to $3.2 million in the preceding quarter.

•Return on average assets was 1.20%, compared to 1.37% in the preceding quarter.

•Net loans receivable were $11.83 billion at June 30, 2026, compared to $11.55 billion at March 31, 2026.

•Total deposits were $13.79 billion at June 30, 2026, compared to $13.84 billion at March 31, 2026.

•Core deposits represented 89% of total deposits at June 30, 2026.

•Non-performing assets were $60.5 million, or 0.36% of total assets, at June 30, 2026, compared to $51.7 million, or 0.32% of total assets at March 31, 2026.

•The allowance for credit losses - loans was $161.8 million, or 1.35% of total loans receivable, as of June 30, 2026, compared to $160.4 million, or 1.37% of total loans receivable, at March 31, 2026.

•Dividends paid to shareholders were $0.52 per share in the quarter ended June 30, 2026.

•Common shareholders’ equity per share increased to $58.83 at June 30, 2026, compared to $58.06 at March 31, 2026.

•Tangible common shareholders’ equity per share* increased to $47.82 at June 30, 2026, compared to $47.00 at March 31, 2026.

*Non-GAAP Financial Measures

Significant Recent Initiatives and Events

On April 30, 2026, Banner entered into a definitive merger agreement to acquire Pacific Financial Corporation (“Pacific Financial”), the holding company for Bank of the Pacific, in an all-stock transaction. Under the terms of the agreement, at the effective time of the merger, shareholders of Pacific Financial will receive 0.2633 shares of Banner common stock for each Pacific Financial common share they own. The transaction is expected to close in the third quarter of 2026 and is subject to closing conditions, including Pacific Financial shareholder and regulatory approvals. There can be no assurance that all closing conditions will be satisfied or that the transaction will be completed on the anticipated timetable, or at all.

Reconciliation of Non-GAAP Financial Measures

Management has presented non-GAAP financial measures in this discussion and analysis because it believes these measures provide useful and comparative information to assess trends in our core operations and to facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, we have also presented comparable earnings information using GAAP financial measures. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies.

48

Table of Contents

Adjusted revenue, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, return on average tangible common equity, and adjusted efficiency ratio are non-GAAP financial measures. To calculate these non-GAAP measures, we make adjustments to our GAAP revenues and expenses as reported on our Consolidated Statements of Operations. Management believes that these non-GAAP financial measures provide information to investors that is useful in evaluating the operating performance and trends of financial services companies, including the Company (dollars in thousands except per share data).

[[GREPCENT_TABLE]]
[["","Quarters Ended","","Six Months Ended June 30,"],["","Jun 30, 2026","","Mar 31, 2026","","Jun 30, 2025","","2026","","2025"],["ADJUSTED REVENUE"],["Net interest income (GAAP)","$","153,740","","","$","150,169","","","$","144,399","","","$","303,909","","","$","285,482"],["Non-interest income (GAAP)","18,222","","","19,161","","","17,751","","","37,383","","","36,859"],["Total revenue (GAAP)","171,962","","","169,330","","","162,150","","","341,292","","","322,341"],["Exclude: Net (gain) loss on sale of securities","(8)","","","1,242","","","3","","","1,234","","","3"],["Net change in valuation of financial instruments carried at fair value","157","","","(1,662)","","","(88)","","","(1,505)","","","(403)"],["Losses on building and lease exits","\u2014","","","\u2014","","","919","","","\u2014","","","919"],["Adjusted revenue (non-GAAP)","$","172,111","","","$","168,910","","","$","162,984","","","$","341,021","","","$","322,860"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Quarters Ended","","Six Months Ended June 30,"],["","Jun 30, 2026","","Mar 31, 2026","","Jun 30, 2025","","2026","","2025"],["ADJUSTED EARNINGS"],["Net income (GAAP)","$","48,886","","","$","54,716","","","$","45,496","","","$","103,602","","","$","90,631"],["Exclude: Net (gain) loss on sale of securities","(8)","","","1,242","","","3","","","1,234","","","3"],["Net change in valuation of financial instruments carried at fair value","157","","","(1,662)","","","(88)","","","(1,505)","","","(403)"],["Merger and acquisition-related expenses","238","","","\u2014","","","\u2014","","","238","","","\u2014"],["Building and lease exit costs, net","47","","","9","","","1,753","","","56","","","1,753"],["Related net tax (benefit) expense","(104)","","","99","","","(401)","","","(5)","","","(325)"],["Total adjusted earnings (non-GAAP)","$","49,216","","","$","54,404","","","$","46,763","","","$","103,620","","","$","91,659"],["Diluted earnings per share (GAAP)","$","1.43","","","$","1.60","","","$","1.31","","","$","3.03","","","$","2.61"],["Adjusted diluted earnings per share (non-GAAP)","$","1.44","","","$","1.59","","","$","1.35","","","$","3.03","","","$","2.64"],["Return on average assets","1.20","%","","1.37","%","","1.13","%","","1.28","%","","1.14","%"],["Adjusted return on average assets (1)","1.21","%","","1.36","%","","1.16","%","","1.28","%","","1.15","%"],["Return on average equity","9.91","%","","11.29","%","","9.92","%","","10.59","%","","10.04","%"],["Adjusted return on average equity (2)","9.98","%","","11.23","%","","10.20","%","","10.60","%","","10.16","%"],["","Quarters Ended","","Six Months Ended June 30,"],["AVERAGE TANGIBLE COMMON EQUITY","Jun 30, 2026","","Mar 31, 2026","","Jun 30, 2025","","2026","","2025"],["Net Income (GAAP)","$","48,886","","","$","54,716","","","$","45,496","","","$","103,602","","","$","90,631"],["Exclude: Amortization of intangibles, net of tax","202","","","202","","","360","","","404","","","720"],["Tangible net income available to common shareholders (non-GAAP)","$","49,088","","","$","54,918","","","$","45,856","","","$","104,006","","","$","91,351"],["Average common shareholder\u2019s equity","$","1,978,560","","","$","1,965,463","","","$","1,839,683","","","$","1,972,048","","","$","1,819,493"],["Exclude: Average goodwill and other intangible assets, net","374,225","","","374,477","","","375,486","","","374,350","","","375,713"],["Average tangible common equity","$","1,604,335","","","$","1,590,986","","","$","1,464,197","","","$","1,597,698","","","$","1,443,780"],["Return on average equity","9.91","%","","11.29","%","","9.92","%","","10.59","%","","10.04","%"],["Return on average tangible common equity (3)","12.27","%","","14.00","%","","12.56","%","","13.13","%","","12.76","%"]]
[[/GREPCENT_TABLE]]

49

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[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm
Complete FY 2025 MD&A: /company/BANR/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements contained in this Form 10-K.

Executive Overview

Banner’s successful execution of its super community bank model and strategic initiatives has delivered solid core operating results and profitability over the last several years. The Company’s longer term strategic initiatives continue to focus on originating high-quality assets and client acquisition, which we believe will continue to generate strong revenue while maintaining the Company’s moderate risk profile.

2025 Financial Highlights

•Net interest margin, on a tax equivalent basis, was 3.96% compared to 3.75% in the prior year.

•Revenues were $660.7 million for the year ended December 31, 2025, compared to $608.6 million for the prior year.

•Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities, the net change in valuation of financial instruments, and gains or losses incurred on building and lease exits) was $661.5 million for the year ended December 31, 2025, compared to $614.8 million for the prior year.

•Net interest income was $587.9 million for the year ended December 31, 2025, compared to $541.7 million for the prior year.

•Mortgage banking revenue was $13.2 million for the year ended December 31, 2025, compared to $12.2 million in the prior year.

•Income from deposit fees and other service charges was $43.2 million for the year ended December 31, 2025, compared to $43.4 million for the prior year.

•Return on average assets was 1.21% for year ended December 31, 2025, compared to 1.07% for the prior year.

•Net loans receivable increased 3% to $11.56 billion at December 31, 2025, compared to $11.20 billion a year ago.

•Total deposits were $13.74 billion at December 31, 2025, compared to $13.51 billion a year ago.

•Core deposits represented 89% of total deposits at December 31, 2025.

•Non-performing assets were $51.2 million, or 0.31% of total assets, at December 31, 2025, compared to $39.6 million, or 0.24% of total assets, a year ago.

•The allowance for credit losses - loans was $160.3 million, or 1.37% of total loans receivable, at December 31, 2025, compared to $155.5 million, or 1.37% of total loans receivable a year ago.

•Cash dividends paid to shareholders were $1.94 per share, up from $1.92 per share paid in the prior year.

•Common shareholders’ equity per share increased to $57.08 at December 31, 2025, compared to $51.49 a year ago.

•Tangible common shareholders’ equity per share* increased 14% to $46.09 at December 31, 2025, compared to $40.57 a year ago.

* Represents a non-GAAP financial measure. For a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure, see “Non-GAAP Financial Measures” below.

33

Table of Contents

Selected Financial Data: The following condensed consolidated statements of financial condition and operations and selected performance ratios as of December 31, 2025, 2024 and 2023, and for the years then ended have been derived from our audited consolidated financial statements.

[[GREPCENT_TABLE]]
[["FINANCIAL CONDITION DATA:"],["","December 31"],["(In thousands, except shares)","2025","","2024","","2023"],["Total assets","$","16,354,488","","","$","16,200,037","","","$","15,670,391"],["Cash and securities (1)","3,400,097","","","3,607,933","","","3,687,302"],["Loans receivable, net","11,561,411","","","11,199,135","","","10,660,812"],["Deposits","13,743,146","","","13,514,398","","","13,029,497"],["Borrowings","336,866","","","563,012","","","665,141"],["Total shareholders\u2019 equity","1,946,297","","","1,774,326","","","1,652,691"],["Shares outstanding","34,097,856","","","34,459,832","","","34,348,369"],["OPERATING DATA:"],["","For the Year Ended December 31"],["(In thousands)","2025","","2024","","2023"],["Interest income","$","804,955","","","$","766,103","","","$","701,572"],["Interest expense","217,036","","","224,387","","","125,567"],["Net interest income","587,919","","","541,716","","","576,005"],["Provision for credit losses","13,045","","","7,581","","","10,789"],["Net interest income after provision for credit losses","574,874","","","534,135","","","565,216"],["Deposit fees and other service charges","43,240","","","43,371","","","41,638"],["Mortgage banking operations revenue","13,244","","","12,207","","","11,817"],["Net gain (loss) on sale of securities","374","","","(5,190)","","","(19,242)"],["Net change in valuation of financial instruments carried at fair value","(1,384)","","","(982)","","","(4,218)"],["All other non-interest income","17,340","","","17,482","","","14,414"],["Total non-interest income","72,814","","","66,888","","","44,409"],["Salary and employee benefits","260,706","","","250,555","","","244,563"],["All other non-interest expenses","148,068","","","140,983","","","137,975"],["Total non-interest expense","408,774","","","391,538","","","382,538"],["Income before provision for income tax expense","238,914","","","209,485","","","227,087"],["Provision for income tax expense","43,532","","","40,587","","","43,463"],["Net income","$","195,382","","","$","168,898","","","$","183,624"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["PER COMMON SHARE DATA:"],["","At or For the Years Ended December 31"],["","2025","","2024","","2023"],["Net income:"],["Basic","$","5.67","","","$","4.90","","","$","5.35"],["Diluted","5.64","","","4.88","","","5.33"],["Diluted adjusted earnings per share (11)","5.70","","","5.01","","","5.88"],["Common shareholders\u2019 equity per share (2)","57.08","","","51.49","","","48.12"],["Common shareholders\u2019 tangible equity per share (2)(11)","46.09","","","40.57","","","37.09"],["Cash dividends","1.94","","","1.92","","","1.92"],["Dividend payout ratio (basic)","34.22","%","","39.18","%","","35.89","%"],["Dividend payout ratio (diluted)","34.40","%","","39.34","%","","36.02","%"]]
[[/GREPCENT_TABLE]]

34

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[[GREPCENT_TABLE]]
[["OTHER DATA:"],["","As of December 31,"],["","2025","","2024","","2023"],["Full-time equivalent employees","1,943","","","1,956","","","1,966"],["Number of branches","135","","","135","","","135"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["KEY FINANCIAL RATIOS:"],["","At or For the Years Ended December 31"],["","2025","","2024","","2023"],["Performance Ratios:"],["Return on average assets (3)","1.21","%","","1.07","%","","1.18","%"],["Adjusted return on average assets (4) (11)","1.22","","","1.10","","","1.30"],["Return on average common equity (5)","10.51","","","9.91","","","11.94"],["Adjusted return on average equity (6) (11)","10.63","","","10.19","","","13.17"],["Return on average tangible common equity (7) (11)","13.16","","","12.73","","","15.87"],["Average common equity to average assets","11.48","","","10.80","","","9.88"],["Net interest margin (tax equivalent) (8)","3.96","","","3.75","","","4.01"],["Non-interest income to average assets","0.45","","","0.42","","","0.29"],["Non-interest expense to average assets","2.52","","","2.48","","","2.46"],["Efficiency ratio (9)","61.87","","","64.33","","","61.66"],["Adjusted efficiency ratio (11)","60.19","","","62.29","","","57.89"],["Average interest-earning assets to average funding liabilities","108.11","","","107.60","","","106.67"],["Loans to deposits ratio","85.60","","","84.26","","","83.05"],["Selected Financial Ratios:"],["Allowance for credit losses - loans as a percent of total loans at end of period","1.37","","","1.37","","","1.38"],["Net charge-offs as a percent of average outstanding loans during the period","(0.06)","","","(0.02)","","","(0.03)"],["Non-performing assets as a percent of total assets (10)","0.31","","","0.24","","","0.19"],["Allowance for credit losses - loans as a percent of non-performing loans (10)","351.18","","","420.83","","","505.52"],["Common shareholders\u2019 equity to total assets","11.90","","","10.95","","","10.55"],["Common shareholders\u2019 tangible equity to tangible assets (11)","9.84","","","8.84","","","8.33"],["Consolidated Capital Ratios:"],["Total capital to risk-weighted assets","14.69","","","15.04","","","14.58"],["Tier 1 capital to risk-weighted assets","13.44","","","13.08","","","12.64"],["Tier 1 capital to average leverage assets","11.41","","","11.05","","","10.56"],["Common equity tier I capital to risk-weighted assets","12.81","","","12.44","","","11.97"]]
[[/GREPCENT_TABLE]]

(1)Includes available-for-sale and held-to-maturity securities.

(2)Calculated using common shares outstanding at the end of the period.

(3)Net income divided by average assets.

(4)Adjusted earnings (non-GAAP) divided by average assets.

(5)Net income divided by average common equity.

(6)Adjusted earnings (non-GAAP) divided by average equity.

(7)Net income divided by average tangible common equity.

(8)Net interest income as a percent of average interest-earning assets on a tax equivalent basis.

(9)Non-interest expenses divided by the total of net interest income and non-interest income.

(10)Non-performing loans consist of nonaccrual loans and loans 90 days or more past due and still accruing interest. Non-performing assets consist of non-performing loans and REO.

(11)Represents a non-GAAP financial measure. For a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure, see, “Non-GAAP Financial Measures” below.

Non-GAAP Financial Measures

Management has presented non-GAAP financial measures in this discussion and analysis because it believes that they provide useful information to assess trends in our core operations and to facilitate the comparison of our performance with our peers. However, these non-GAAP financial measures are supplemental to, and not a substitute for, any analysis based on GAAP. The most directly comparable GAAP financial measures are presented with equal or greater prominence. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see the tables below. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies.

35

Table of Contents

Adjusted revenue, diluted adjusted earnings per share and adjusted efficiency ratio are non-GAAP financial measures. To calculate adjusted revenue, diluted adjusted earnings per share and adjusted efficiency ratio, we make adjustments to our GAAP revenues and expenses as reported on our Consolidated Statements of Operations. Management believes that these non-GAAP financial measures provide information to investors that is useful in evaluating the operating performance and trends of financial services companies, including the Company, by excluding certain items that Management considers not reflective of core operating performance. The following tables set forth reconciliations of these non-GAAP financial measures (dollars in thousands, except share and per share data):

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/BANR/mda/fy2025/
All MD&A years: /company/BANR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/BANR/mda/fy2024/): filed 2025-02-26; accession 0000946673-25-000008 (https://www.sec.gov/Archives/edgar/data/946673/000094667325000008/banr-20241231.htm)
- [FY 2023 MD&A](/company/BANR/mda/fy2023/): filed 2024-02-23; accession 0000946673-24-000008 (https://www.sec.gov/Archives/edgar/data/946673/000094667324000008/banr-20231231.htm)
- [FY 2022 MD&A](/company/BANR/mda/fy2022/): filed 2023-02-21; accession 0000946673-23-000009 (https://www.sec.gov/Archives/edgar/data/946673/000094667323000009/banr-20221231.htm)
- [FY 2021 MD&A](/company/BANR/mda/fy2021/): filed 2022-02-24; accession 0000946673-22-000004 (https://www.sec.gov/Archives/edgar/data/946673/000094667322000004/banr-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/BANR.md · JSON record: /company/BANR.json · verified financials: /company/BANR/financials.json / /company/BANR/financials.csv · machine TOC for the whole site: /llms.txt