Banner Corp. Files Q3 2024 10-Q

TL;DR

BANR 10-Q filed: Q3 financials out, showing loan and stock data. Check for performance trends.

AI Summary

Banner Corp. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and position, including loan balances and common stock information. Key financial data for the nine months ended September 30, 2024, and the full year 2023 are presented.

Why It Matters

This filing provides investors and analysts with the latest financial snapshot of Banner Corp., crucial for understanding its performance and making informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Latest financial data available)
• 2023-12-31 — Previous Year End Date (For comparison with current period)
• 2024-01-01 to 2024-09-30 — Year-to-Date Period (Financial performance for the first nine months of 2024)
• 2023-07-01 to 2023-09-30 — Q3 2023 Period (For comparison with Q3 2024)

Key Players & Entities

• BANNER CORP (company) — Filer
• 20240930 (date) — Period of Report
• 20241105 (date) — Filing Date
• WALLA WALLA, WA (location) — Business Address
• 5095273636 (phone_number) — Business Phone

FAQ

Filing Documents

• banr-20240930.htm (10-Q) — 4925KB
• banr-09302024xex311.htm (EX-31.1) — 11KB
• banr-09302024xex312.htm (EX-31.2) — 11KB
• banr-09302024xex32.htm (EX-32) — 8KB
• 0000946673-24-000033.txt ( ) — 22429KB
• banr-20240930.xsd (EX-101.SCH) — 69KB
• banr-20240930_cal.xml (EX-101.CAL) — 123KB
• banr-20240930_def.xml (EX-101.DEF) — 443KB
• banr-20240930_lab.xml (EX-101.LAB) — 819KB
• banr-20240930_pre.xml (EX-101.PRE) — 645KB
• banr-20240930_htm.xml (XML) — 6225KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1 – Financial Statements (unaudited) . The Unaudited Condensed Consolidated Financial Statements of Banner Corporation and Subsidiaries filed as a part of the report are as follows: Consolidated Statements of Financial Condition 4 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Changes in Shareholders' Equity 7 Consolidated Statements of Cash Flows 8 Selected Notes to the Consolidated Financial Statements 10

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

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations Executive Overview 47 Comparison of Financial Condition 50 Comparison of Results of Operations 54 Asset Quality 61 Liquidity and Capital Resources 63 Capital Requirements 64

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk Market Risk and Asset/Liability Management 64 Sensitivity Analysis 65

– Controls and Procedures

Item 4 – Controls and Procedures 68

– OTHER INFORMATION

PART II – OTHER INFORMATION

– Legal Proceedings

Item 1 – Legal Proceedings 69

– Risk Factors

Item 1A – Risk Factors 69

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 70

– Defaults upon Senior Securities

Item 3 – Defaults upon Senior Securities 70

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 70

– Other Information

Item 5 – Other Information 70

– Exhibits

Item 6 – Exhibits 71

SIGNATURES

SIGNATURES 73 2 Table of Contents All references to "Banner" refer to Banner Corporation and those to the "Bank" refer to its wholly-owned subsidiary, Banner Bank. As used throughout this report, the terms "we," "our," "us," or the "Company" refer to Banner Corporation and its consolidated subsidiaries, unless the context otherwise requires. Special Note Regarding Forward-Looking Statements Certain matters in this Form 10-Q 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, including, but not limited to: Adverse economic conditions in our market areas or other areas where we have lending relationships, due to factors such as employment levels, labor shortages, inflation, a recession, or slowed economic growth. Changes in the interest rate environment, including past increases or decreases in the Board of Governors of the Federal Reserve System's (Federal Reserve) benchmark rate, which could adversely affect our revenues, expenses, asset values, debt obligations, and liquidity. Impact of inflation and t

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

- Financial Statements (unaudited)

ITEM 1 - Financial Statements (unaudited) BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (In thousands, except shares and per share amounts) September 30, 2024 and December 31, 2023 ASSETS September 30, 2024 December 31, 2023 Cash and due from banks $ 226,568 $ 209,634 Interest-bearing deposits 252,227 44,830 Total cash and cash equivalents 478,795 254,464 Securities—available-for-sale, amortized cost $ 2,523,968 and $ 2,729,980 , respectively 2,237,939 2,373,783 Securities—held-to-maturity, net of allowance for credit losses of $ 307 and $ 332 , respectively 1,013,903 1,059,055 Total securities 3,251,842 3,432,838 Federal Home Loan Bank (FHLB) stock 19,751 24,028 Loans held for sale (includes $ 21,984 and $ 9,105 , at fair value, respectively) 78,841 11,170 Loans receivable 11,224,606 10,810,455 Allowance for credit losses – loans ( 154,585 ) ( 149,643 ) Net loans receivable 11,070,021 10,660,812 Accrued interest receivable 66,981 63,100 Property and equipment, net 125,256 132,231 Goodwill 373,121 373,121 Other intangibles, net 3,647 5,684 Bank-owned life insurance (BOLI) 310,400 304,366 Deferred tax assets, net 130,310 153,365 Operating lease right-of-use assets 38,192 43,731 Other assets 241,519 211,481 Total assets $ 16,188,676 $ 15,670,391 LIABILITIES Deposits: Non-interest-bearing $ 4,688,244 $ 4,792,369 Interest-bearing transaction and savings accounts 7,328,051 6,759,661 Interest-bearing certificates 1,521,853 1,477,467 Total deposits 13,538,148 13,029,497 Advances from FHLB 230,000 323,000 Other borrowings 154,533 182,877 Subordinated notes, net 80,170 92,851 Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) 66,257 66,413 Operating lease liabilities 42,318 48,659 Accrued expenses and other liabilities 237,128 228,428 Deferred compensation 46,401 45,975 Total liabilities 14,394,955 14,017,700 COMMITMENTS AND CON

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