Banner Corporation (BANR) SEC Filings & Earnings Calls

Non-performing assets increased to $63.0 million from $45.3 million a year ago, indicating some credit quality deterioration.

“Non-performing assets were $63.0 million, or 0.35% of total assets, at September 30, 2026, compared to $60.5 million, or 0.36% of total assets, at June 30, 2026, and $45.3 million” · word for word

Merger and acquisition-related costs of $5.2 million in Q3 2026 weighed on earnings, though these are non-recurring.

“Third quarter 2026 results included $5.2 million of merger-and acquisition-related costs, compared to $238,000 in the preceding quarter and none in the third quarter of 2025.” · word for word

Integration risk: combining operations and systems of two banks; systems integration planned for November.

“Systems integration is planned for November, bringing all operations under the Banner brand” · word for word

Dilution from issuance of ~2.65M shares; former Pacific Financial shareholders own ~7% of combined company.

“former Pacific Financial shareholders own approximately 7%, and existing Banner shareholders own approximately 93%” · word for word

Merger closing risk remains due to customary conditions

“subject to the satisfaction of the remaining customary closing conditions” · word for word

Merger completion subject to remaining regulatory approvals.

“Subject to remaining regulatory approvals.”

Credit quality deterioration

“Non-performing assets totaled $60.5 million, or 0.36% of total assets, at June 30, 2026, compared to $51.2 million, or 0.31% of total assets, at December 31, 2025.” · word for word

Merger integration risk

“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.” · word for word

Interest rate risk

“At June 30, 2026, the Company’s interest rate risk profile reflected a moderately asset-sensitive position in the near term, with net interest income projected to increase under rising rate scenarios and decrease under falling rate scenarios.” · word for word

Provision for credit losses increased to $3.8M from a recapture of $0.8M in prior quarter, indicating potential credit deterioration.

“Second quarter 2026 results included a $3.8 million provision for credit losses, compared to a $796,000 recapture of provision for credit losses in the preceding quarter” · word for word

Non-performing assets increased to $60.5M (0.36% of assets) from $51.7M (0.32%) in prior quarter, signaling modest credit quality weakening.

“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” · word for word

Interest rate risk from securities portfolio

“Gross unrealized losses on AFS securities $266.6M at March 31, 2026.”

Credit risk in construction and commercial business loans

“Substandard loans in multifamily construction $23.8M and commercial business $63.0M at March 31, 2026.”

Merger integration risk

“Pending merger with Pacific Financial Corporation may be more difficult, time-consuming or costly than expected.”

Regulatory and shareholder approval risks; integration execution risk

“Merger subject to regulatory approvals and Pacific Financial shareholder vote”

Concentration in commercial real estate lending

“The Bank maintains a significant commercial real estate loan portfolio, which is subject to market fluctuations.”

Interest rate risk

“Changes in interest rates could impact net interest margin and profitability.”

No material risk; routine board expansion with independent directors.

“Standard director appointment with no disclosed conflicts or unusual arrangements.”

Non-performing assets increase

“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.” · word for word

Provision for credit losses increase

“Provision for credit losses 13,045 7,581” · word for word

Interest rate risk from securities portfolio

“The average effective duration of our securities portfolio was approximately 6.2 years at December 31, 2025, compared to 6.6 years at December 31, 2024.” · word for word

Non-performing assets increased to $51.2M (0.31% of assets) from $45.3M (0.27%) prior quarter.

“Non-performing assets were $51.2 million, or 0.31% of total assets, at December 31, 2025, compared to $45.3 million, or 0.27% of total assets, at September 30, 2025” · word for word

Deposits decreased slightly QoQ.

“Total deposits were $13.74 billion at December 31, 2025, compared to $14.02 billion at September 30, 2025” · word for word

Credit quality deterioration

“Provision for credit losses increased 58% YoY in Q3 2025 and 131% YTD, indicating potential credit stress or reserve building.”

Interest rate risk

“Large unrealized losses on securities portfolio ($280.8M AFS, $156.2M HTM) expose the company to interest rate risk.”

Operating expense growth

“Non-interest expense grew 5.9% YoY in Q3 2025, outpacing revenue growth in some periods.”