BANNER CORP Files 2023 Annual Report on Form 10-K

TL;DR

<b>Banner Corp. has submitted its 2023 10-K filing, detailing financial performance and corporate structure for the fiscal year ending December 31, 2023.</b>

AI Summary

BANNER CORP (BANR) filed a Annual Report (10-K) with the SEC on February 23, 2024. Banner Corp. filed its 2023 Form 10-K on February 23, 2024, reporting on the fiscal year ending December 31, 2023. The company is incorporated in Washington (WA) and operates under the Standard Industrial Classification code 6022 for State Commercial Banks. The filing includes financial data for the fiscal years 2020, 2021, 2022, and 2023. Key financial statement components such as Common Stock, Retained Earnings, and Accumulated Other Comprehensive Income are detailed for these years. The report references valuation techniques including Discounted Cash Flow and fair value disclosures for Level 2 inputs.

Why It Matters

For investors and stakeholders tracking BANNER CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Banner Corp.'s financial health and operational status for the past fiscal year, crucial for investors assessing the company's performance and future prospects. The detailed financial data, including historical figures from 2020-2023, allows for trend analysis and comparison, aiding stakeholders in making informed investment decisions.

Risk Assessment

Risk Level: medium — BANNER CORP shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded company, which inherently carries market and operational risks, but no specific immediate red flags are apparent from the header information alone.

Analyst Insight

Review the detailed financial statements and risk factors within the full 10-K to understand Banner Corp.'s financial position and strategic outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-23 — Filing Date (Date of submission)
• 000-26584 — SEC File Number (SEC registration number)
• 911691604 — IRS Number (Tax identification number)

Key Players & Entities

• BANNER CORP (company) — Filer name
• 0000946673 (company) — Central Index Key
• 6022 (company) — Standard Industrial Classification
• WA (company) — State of Incorporation
• FIRST WASHINGTON BANCORP INC /WA/ (company) — Former company name
• FIRST SAVINGS BANK OF WASHINGTON BANCORP INC (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-23 (date) — Filing date

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-23: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document type filed, providing the core financial and operational data for the fiscal year.)

Central Index Key (CIK)

A unique identifier assigned to each entity that files with the SEC. (Helps in uniquely identifying Banner Corp. within SEC filings.)

Standard Industrial Classification (SIC)

A system used to classify business establishments that the U.S. government uses for data collection purposes. (Indicates Banner Corp.'s primary industry as State Commercial Banks.)

Key Financial Figures

• $15.67 b — 23, we had total consolidated assets of $15.67 billion, net loans of $10.66 billion, tot
• $10.66 b — assets of $15.67 billion, net loans of $10.66 billion, total deposits of $13.03 billion
• $13.03 billion — ns of $10.66 billion, total deposits of $13.03 billion and total shareholders' equity of $1.65
• $1.65 billion — llion and total shareholders' equity of $1.65 billion. Banner's common stock is traded on the
• $10.81 billion — 31, 2023 our net loan portfolio totaled $10.81 billion compared to $10.15 billion at December
• $10.15 billion — olio totaled $10.81 billion compared to $10.15 billion at December 31, 2022. One- to Four-Fa
• $1.52 b — ber 31, 2023 14% of the loan portfolio, $1.52 billion, consisted of permanent one- to f
• $811.2 million — Our multifamily real estate portfolio, $811.2 million as of December 31, 2023, is granular in
• $1.1 million — of our commercial real estate loans was $1.1 million and the largest commercial real estate
• $22.9 million — tstanding balance, in our portfolio was $22.9 million. Commercial Business Lending: We are
• $3 million — rowers with credit needs generally in a $3 million to $25 million range.
• $25 million — edit needs generally in a $3 million to $25 million range.

Filing Documents

• banr-20231231.htm (10-K) — 6105KB
• banr-12312023xex42.htm (EX-4.2) — 33KB
• banr-1231x23xex10o2020bann.htm (EX-10.O) — 512KB
• banr-12312023xex21.htm (EX-21) — 12KB
• banr-12312023xex231.htm (EX-23.1) — 2KB
• banr-12312023xex311.htm (EX-31.1) — 11KB
• banr-12312023xex312.htm (EX-31.2) — 11KB
• banr-12312023xex32.htm (EX-32) — 8KB
• banr-1231x2023xex97policyr.htm (EX-97) — 70KB
• banr-20231231_g1.jpg (GRAPHIC) — 122KB
• 0000946673-24-000008.txt (&nbsp;) — 28913KB
• banr-20231231.xsd (EX-101.SCH) — 113KB
• banr-20231231_cal.xml (EX-101.CAL) — 177KB
• banr-20231231_def.xml (EX-101.DEF) — 684KB
• banr-20231231_lab.xml (EX-101.LAB) — 1430KB
• banr-20231231_pre.xml (EX-101.PRE) — 1003KB
• banr-20231231_htm.xml (XML) — 6893KB

Forward-Looking Statements 1

Forward-Looking Statements 1 PART I

Business 2

Item 1. Business 2 General 2 Lending Activities 2 Asset Quality 6 Investment Activities 6 Deposit Activities and Other Sources of Funds 7 Personnel 8 Taxation 11 Competition 11 Regulation 11 Information about our Executive Officers 18 Corporate Information 21

Risk Factors 22

Item 1A. Risk Factors 22

Unresolved Staff Comments 33

Item 1B. Unresolved Staff Comments 33

Cyber Security 34

Item 1C. Cyber Security 34

Properties 35

Item 2. Properties 35

Legal Proceedings 36

Item 3. Legal Proceedings 36

Mine Safety Disclosures 36

Item 4. Mine Safety Disclosures 36 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 37

Management's Discussion and Analysis of Financial Condition and Results of Operations 39

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Executive Overview 39 Comparison of Financial Condition at December 31, 2023 and 2022 44 Comparison of Results of Operations Years ended December 31, 2023 and 2022 56 Years ended December 31, 2022 and 2021 63 Market Risk and Asset/Liability Management 64 Liquidity and Capital Resources 68 Capital Requirements 69

Quantitative and Qualitative Disclosures About Market Risk 69

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 69

Financial Statements and Supplementary Data 69

Item 8. Financial Statements and Supplementary Data 69

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 70

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 70

Controls and Procedures 70

Item 9A. Controls and Procedures 70

Other Information 70

Item 9B. Other Information 70

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 70

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 70 PART III

Directors, Executive Officers and Corporate Governance 71

Item 10. Directors, Executive Officers and Corporate Governance 71

Executive Compensation 71

Item 11. Executive Compensation 71

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71

Certain Relationships and Related Transactions, and Director Independence 72

Item 13. Certain Relationships and Related Transactions, and Director Independence 72

Principal Accountant Fees and Services 72

Item 14. Principal Accountant Fees and Services 72 PART IV

Exhibits and Financial Statement Schedules 73

Item 15. Exhibits and Financial Statement Schedules 73 Signatures 74

Forward-Looking Statements

Forward-Looking Statements Certain matters in this Form 10-K constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items, including statements about our financial condition, liquidity and results of operations. Forward-looking statements are not statements of historical fact, are based on certain assumptions and are generally identified by use of the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could." These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war, and increasing supply chain disruptions; changes in the interest rate environment, including past increases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and duration at which such increased interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity;

– Business

Item 1 – Business General Banner is a bank holding company incorporated in the State of Washington which wholly owns one 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 December 31, 2023, its 135 branch offices and 13 loan production offices located in Washington, Oregon, California, Idaho and Utah. Banner is subject to regulation by the Federal Reserve. The Bank is subject to regulation by the Washington DFI and the FDIC. As of December 31, 2023, we had total consolidated assets of $15.67 billion, net loans of $10.66 billion, total deposits of $13.03 billion and total shareholders' equity of $1.65 billion. Banner's common stock is traded on the NASDAQ Global Select Market under the ticker symbol "BANR." The Bank is a regional bank which 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 in Washington, Oregon, California and Idaho. In addition, the bank originates loans in the area surrounding its loan production office located in Utah. The Bank is also an active participant in secondary loan markets, engaging in mortgage banking operations largely 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, U.S. Small Business Administration (SBA) loans and consumer loans. We continue to invest in our delivery platform across the franchise with a primary emphasis on strengthening our presence in the higher growth regions of our markets. In addition, we continue to improve the

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View this 10-K filing on SEC EDGAR