BANNER CORP 10-Q

banr-20260630 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ to ______________ Commission File Number 000-26584 BANNER CORPORATION (Exact name of registrant as specified in its charter) Washington 91-1691604 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 10 South First Avenue , Walla Walla , Washington 99362 (Address of principal executive offices and zip code) Registrant’s telephone number, including area code: ( 509 ) 527-3636 Securities registered pursuant to Section 12(b) of the Act Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $.01 per share BANR The NASDAQ Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Title of class: As of July 31, 2026 Common Stock, $.01 par value per share 33,984,909 shares 1 BANNER CORPORATION AND SUBSIDIARIES Table of Contents 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 5 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Changes in Shareholders’ Equity 8 Consolidated Statements of Cash Flows 9 Selected Notes to the Consolidated Financial Statements 11 Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations Executive Overview 48 Comparison of Financial Condition 51 Comparison of Results of Operations 54 Asset Quality 62 Liquidity and Capital Resources 63 Capital Requirements 64 Item 3 – Quantitative and Qualitative Disclosures About Market Risk Market Risk and Asset/Liability Management 64 Sensitivity Analysis 65 Item 4 – Controls and Procedures 68 PART II – OTHER INFORMATION Item 1 – Legal Proceedings 69 Item 1A – Risk Factors 69 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 70 Item 3 – Defaults upon Senior Securities 70 Item 4 – Mine Safety Disclosures 70 Item 5 – Other Information 70 Item 6 – Exhibits 71 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.” Forward-looking statements are inherently subject to numerous risks and uncertainties, including ongoing market volatility and evolving global conditions, which may cause actual results to differ materially from those expressed or implied. These factors include, but are not limited to: • 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 labor shortages, elevated inflation, recessionary pressures, or slowing economic growth; • Changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could materially affect our net interest margin, funding costs, asset values, access to capital and liquidity; • The impact of inflation and related monetary and fiscal policy responses, and their impact on consumer and business behavior; • Geopolitical developments and international conflicts, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors, including, but not limited to, agriculture-based lending; • The effects of a federal government shutdown, a debt ceiling standoff, or other fiscal policy uncertainty; • The impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry on investor and depositor sentiment; • Expectations regarding our key growth initiatives and strategic priorities; • Credit risks from lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses, which could necessitate additional provisions for credit losses, resulting from both loans originated and loans acquired from other financial institutions; • Results of examinations by regulatory authorities, which could result in the imposition of penalties, required changes to our business practices, or additional reserves; • Competitive pressures among depository and non-depository institutions that may contribute to industry disintermediation or adversely affect pricing, market share, deposit flows or product offerings; • Fluctuations in real estate values; • The ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking platforms, and cybersecurity; • Ability to access cost-effective funding and to control operating costs and expenses; • Vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; • Market volatility or deterioration in capital markets affecting liquidity, valuations, or investor confidence; • The costs, effects and outcomes of litigation or other legal proceedings involving the Company; • Legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; • Changes in accounting principles, policies or guidelines; • The impact of pending and future acquisitions or business combinations, including related goodwill impairment risks and integration challenges; • The effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets and liabilities, which estimates may prove to be inaccurate; • Effects on loan collateral, operations, or compliance obligations from climate change, severe weather, natural disasters, pandemics, public health crises, acts of war or terrorism, civil unrest and other external events; • Other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and • Other risks detailed in our Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”), or in our reports filed with or furnished to the U.S. Securities and Exchange Commission (SEC), including this Form 10-Q. 3 Table of Contents Further, statements about the potential effects of Banner’s proposed merger with Pacific Financial Corporation (“Pacific Financial”) on Banner’s business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factors and future developments which are uncertain, unpredictable and in many cases beyond Banner’s control, including, but are not limited to the risk that: (1) the business of Pacific Financial may not be integrated with Banner’s business successfully or such integration may be more difficult, time-consuming or costly than expected; (2) any of the anticipated benefits of the merger may not be realized or may not be realized within the expected time period; (3) customer and employee relationships and business operations may be disrupted by the merger or the announcement of the merger, and the parties may be challenged in retaining key relationships both during the pendency of the merger and following the completion of the merger if that occurs; (4) the parties may not meet expectations regarding the timing of the merger; (5) required regulatory approvals or the approval of Pacific Financial shareholders may not be obtained or such approvals may be more difficult, time-consuming or costly than expected; (6) there may be challenges in satisfying the other conditions to completion of the merger or the merger may fail to close for any other reason; (7) management’s attention may be diverted from ongoing business operations and opportunities due to the merger; (8) there may be potential negative impacts caused by the dilution resulting from Banner’s issuance of shares of Banner Common Stock in connection with the merger; and (9) other factors detailed in Banner’s filings with the SEC. Any forward-looking statements are based upon Management’s beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to update any forward-looking statements included in this report or the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this report might not occur, and you should not put undue reliance on any forward-looking statements. 4 Table of Contents PART I – FINANCIAL INFORMATION ITEM 1 - Financial Statements (unaudited) BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (In thousands, except shares and per share amounts) June 30, 2026 and December 31, 2025 ASSETS June 30, 2026 December 31, 2025 Cash and due from banks $ 215,508 $ 182,772 Interest-bearing deposits 219,944 239,868 Total cash and cash equivalents 435,452 422,640 Securities—available-for-sale, amortized cost $ 2,273,608 and $ 2,271,471 , respectively 2,015,891 2,016,261 Securities—held-to-maturity, net of allowance for credit losses of $ 283 and $ 291 , respectively 929,309 961,196 Total securities 2,945,200 2,977,457 Federal Home Loan Bank (FHLB) stock 24,209 16,476 Loans held for sale (includes $ 17,139 and $ 34,586 , at fair value, respectively) 27,160 42,902 Loans receivable 11,994,410 11,721,687 Allowance for credit losses – loans ( 161,849 ) ( 160,276 ) Net loans receivable 11,832,561 11,561,411 Accrued interest receivable 65,016 60,525 Property and equipment, net 108,247 111,522 Goodwill 373,121 373,121 Other intangibles, net 979 1,491 Bank-owned life insurance (BOLI) 324,164 319,347 Deferred tax assets, net 125,275 127,587 Operating lease right-of-use assets 29,534 32,736 Other assets 302,629 307,273 Total assets $ 16,593,547 $ 16,354,488 LIABILITIES Deposits: Non-interest-bearing $ 4,542,942 $ 4,489,839 Interest-bearing transaction and savings accounts 7,773,630 7,721,003 Interest-bearing certificates 1,473,021 1,532,304 Total deposits 13,789,593 13,743,146 Advances from FHLB 320,000 150,000 Other borrowings 114,497 107,715 Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) 79,652 79,151 Operating lease liabilities 32,108 35,755 Accrued expenses and other liabilities 210,134 245,266 Deferred compensation 48,300 47,158 Total liabilities 14,594,284 14,408,191 COMMITMENTS AND CONTINGENCIES (Note 11) SHAREHOLDERS’ EQUITY Preferred stock - $ 0.01 par value per share, 500,000 shares authorized; no shares outstanding at June 30, 2026 and December 31, 2025 — — Common stock and paid in capital - $ 0.01 par value per share, 50,000,000 shares authorized; 33,984,909 shares issued and outstanding at June 30, 2026; 34,097,856 shares issued and outstanding at December 31, 2025 1,268,527 1,282,505 Common stock (non-voting) and paid in capital - $ 0.01 par value per share, 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2026; no shares issued and outstanding at December 31, 2025 — — Retained earnings 940,210 871,803 Carrying value of shares held in trust for stock-based compensation plans ( 5,682 ) ( 5,813 ) Liability for common stock issued to stock related compensation plans 5,682 5,813 Accumulated other comprehensive loss ( 209,474 ) ( 208,011 ) Total shareholders’ equity 1,999,263 1,946,297 Total liabilities and shareholders’ equity $ 16,593,547 $ 16,354,488 See Selected Notes to the Consolidated Financial Statements 5 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except shares and per share amounts) For the Three and Six Months Ended June 30, 2026 and 2025 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 INTEREST INCOME: Loans receivable $ 178,389 $ 175,373 $ 352,092 $ 344,050 Mortgage-backed securities 14,053 15,416 28,369 31,160 Securities and cash equivalents 10,244 9,470 20,043 18,917 Total interest income 202,686 200,259 400,504 394,127 INTEREST EXPENSE: Deposits 45,554 49,316 91,232 98,053 FHLB advances 1,426 3,370 1,466 4,230 Other borrowings 732 675 1,429 1,369 Subordinated debt 1,234 2,499 2,468 4,993 Total interest expense 48,946 55,860 96,595 108,645 Net interest income 153,740 144,399 303,909 285,482 PROVISION FOR CREDIT LOSSES 3,818 4,795 3,022 7,934 Net interest income after provision for credit losses 149,922 139,604 300,887 277,548 NON-INTEREST INCOME: Deposit fees and other service charges 11,728 10,835 23,119 21,604 Mortgage banking operations 2,792 3,226 6,004 6,329 BOLI 2,471 2,384 4,783 4,959 Miscellaneous 1,380 1,221 3,206 3,567 18,371 17,666 37,112 36,459 Net gain (loss) on sale of securities 8 ( 3 ) ( 1,234 ) ( 3 ) Net change in valuation of financial instruments carried at fair value ( 157 ) 88 1,505 403 Total non-interest income 18,222 17,751 37,383 36,859 NON-INTEREST EXPENSE: Salary and employee benefits 69,388 65,486 137,120 130,343 Less capitalized loan origination costs ( 5,283 ) ( 4,924 ) ( 9,169 ) ( 8,254 ) Occupancy and equipment 10,936 12,256 21,633 24,353 Information and computer data services 10,322 8,199 18,635 15,827 Payment and card processing services 6,218 5,899 12,259 11,649 Professional and legal expenses 2,719 2,271 4,332 4,701 Advertising and marketing 1,982 1,087 2,655 1,677 Deposit insurance 2,819 2,800 5,536 5,597 State and municipal business and use taxes 1,773 1,416 3,593 2,870 Real estate operations, net 165 392 274 331 Amortization of core deposit intangibles 256 455 512 911 Miscellaneous 6,695 6,011 13,218 12,602 Total non-interest expense 107,990 101,348 210,598 202,607 Income before provision for income taxes 60,154 56,007 127,672 111,800 PROVISION FOR INCOME TAXES 11,268 10,511 24,070 21,169 NET INCOME $ 48,886 $ 45,496 $ 103,602 $ 90,631 Earnings per common share: Basic $ 1.44 $ 1.31 $ 3.04 $ 2.62 Diluted $ 1.43 $ 1.31 $ 3.03 $ 2.61 Cumulative dividends declared per common share $ 0.52 $ 0.48 $ 1.02 $ 0.96 Weighted average number of common shares outstanding: Basic 34,012,611 34,627,433 34,025,849 34,568,948 Diluted 34,129,173 34,738,948 34,197,096 34,761,044 See Selected Notes to the Consolidated Financial Statements 6 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) For the Three and Six Months Ended June 30, 2026 and 2025 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 NET INCOME $ 48,886 $ 45,496 $ 103,602 $ 90,631 OTHER COMPREHENSIVE INCOME (LOSS), NET OF INCOME TAXES: Unrealized holding gain (loss) on securities—available-for-sale arising during the period 1,487 9,697 ( 3,749 ) 47,998 Income tax (expense) benefit related to securities—available-for-sale unrealized holding losses ( 357 ) ( 2,328 ) 900 ( 11,520 ) Reclassification for net loss on securities—available-for-sale realized in earnings — 3 1,242 3 Income tax benefit related to securities—available-for-sale realized in earnings — ( 1 ) ( 298 ) ( 1 ) Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity 551 567 1,083 1,116 Income tax expense related to amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity ( 132 ) ( 136 ) ( 260 ) ( 268 ) Changes in fair value of junior subordinated debentures related to instrument specific credit risk ( 180 ) ( 5,655 ) ( 501 ) ( 5,889 ) Income tax benefit related to junior subordinated debentures 43 1,357 120 1,413 Other comprehensive income (loss) 1,412 3,504 ( 1,463 ) 32,852 COMPREHENSIVE INCOME $ 50,298 $ 49,000 $ 102,139 $ 123,483 See Selected Notes to the Consolidated Financial Statements 7 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (In thousands, except shares and per share amounts) Common Stock and Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Shares Amount Balance, January 1, 2025 34,459,832 $ 1,307,509 $ 744,091 $ ( 277,274 ) $ 1,774,326 Net income 45,135 45,135 Other comprehensive income, net of income tax 29,348 29,348 Accrual of dividends on common stock ($ 0.48 /share) ( 16,814 ) ( 16,814 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 30,140 1,458 1,458 Balance, March 31, 2025 34,489,972 1,308,967 772,412 ( 247,926 ) 1,833,453 Net income 45,496 45,496 Other comprehensive income, net of income tax 3,504 3,504 Accrual of dividends on common stock ($ 0.48 /share) ( 16,826 ) ( 16,826 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 94,022 37 37 Balance, June 30, 2025 34,583,994 1,309,004 801,082 ( 244,422 ) 1,865,664 Net income 53,502 53,502 Other comprehensive income, net of income tax 23,667 23,667 Accrual of dividends on common stock ($ 0.48 /share) ( 16,758 ) ( 16,758 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 1,303 2,678 2,678 Repurchase of common stock ( 250,000 ) ( 15,861 ) ( 15,861 ) Balance, September 30, 2025 34,335,297 1,295,821 837,826 ( 220,755 ) 1,912,892 Net income 51,249 51,249 Other comprehensive income, net of income tax 12,744 12,744 Accrual of dividends on common stock ($ 0.50 /share) ( 17,272 ) ( 17,272 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 12,534 2,631 2,631 Repurchase of common stock ( 249,975 ) ( 15,947 ) ( 15,947 ) Balance, December 31, 2025 34,097,856 1,282,505 871,803 ( 208,011 ) 1,946,297 Net income 54,716 54,716 Other comprehensive loss, net of income tax ( 2,875 ) ( 2,875 ) Accrual of dividends on common stock ($ 0.50 /share) ( 17,297 ) ( 17,297 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 27,242 1,941 1,941 Repurchase of common stock ( 250,000 ) ( 16,148 ) ( 16,148 ) Balance, March 31, 2026 33,875,098 1,268,298 909,222 ( 210,886 ) 1,966,634 Net income 48,886 48,886 Other comprehensive income, net of income tax 1,412 1,412 Accrual of dividends on common stock ($ 0.52 /share) ( 17,898 ) ( 17,898 ) Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered 109,811 229 229 Balance, June 30, 2026 33,984,909 $ 1,268,527 $ 940,210 $ ( 209,474 ) $ 1,999,263 See Selected Notes to the Consolidated Financial Statements 8 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) For the Six Months Ended June 30, 2026 and 2025 Six Months Ended June 30, 2026 2025 OPERATING ACTIVITIES: Net income $ 103,602 $ 90,631 Adjustments to reconcile net income to net cash provided from operating activities: Depreciation 7,080 8,474 Deferred income and expense, net of amortization ( 5,458 ) ( 4,817 ) Capitalized loan servicing rights, net of amortization 207 225 Amortization of core deposit intangibles 512 911 Loss on sale of securities, net 1,234 3 Net change in valuation of financial instruments carried at fair value ( 1,505 ) ( 403 ) Decrease in deferred taxes 2,774 1,941 Increase in current taxes payable/receivable, net ( 4,823 ) ( 4,348 ) Stock-based compensation 5,657 4,913 Net change in cash surrender value of BOLI ( 4,783 ) ( 4,652 ) Gain on sale of loans, excluding capitalized servicing rights ( 2,626 ) ( 3,051 ) Loss on disposal of real estate held for sale and property and equipment, net 188 948 Provision for credit losses 3,022 7,934 Origination of loans held for sale ( 198,383 ) ( 171,026 ) Proceeds from sales of loans held for sale 270,343 215,707 Net change in: Other assets 11,853 16,642 Other liabilities ( 40,024 ) ( 47,943 ) Net cash provided from operating activities 148,870 112,089 INVESTING ACTIVITIES: Purchases of securities—available-for-sale ( 164,586 ) ( 18,896 ) Principal repayments and maturities of securities—available-for-sale 145,188 105,638 Proceeds from sales of securities—available-for-sale 14,727 — Principal repayments and maturities of securities—held-to-maturity 32,079 20,326 Loan originations, net of repayments ( 330,845 ) ( 394,673 ) Purchases of loans and participating interest in loans — ( 10,780 ) Proceeds from sales of other loans 7,170 20,189 Purchases of property and equipment ( 3,960 ) ( 4,398 ) Proceeds from sale of real estate held for sale and sale of other property 2,453 1,875 Proceeds from FHLB stock repurchase program 50,985 112,775 Purchase of FHLB stock ( 58,717 ) ( 125,475 ) Investment in BOLI ( 34 ) ( 39 ) Other 1,442 873 Net cash used by investing activities ( 304,098 ) ( 292,585 ) Continued on next page 9 Table of Contents BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited) (In thousands) For the Six Months Ended June 30, 2026 and 2025 Six Months Ended June 30, 2026 2025 FINANCING ACTIVITIES: Increase in deposits, net $ 46,448 $ 12,893 Advances of overnight and short term FHLB borrowings, net 170,000 275,000 Increase (decrease) in other borrowings, net 6,783 ( 8,146 ) Repayment of subordinated notes — ( 80,500 ) Cash dividends paid ( 35,557 ) ( 33,843 ) Cash paid to repurchase common stock ( 16,148 ) — Taxes paid related to net share settlement of equity awards ( 3,486 ) ( 3,418 ) Net cash provided by financing activities 168,040 161,986 NET CHANGE IN CASH AND CASH EQUIVALENTS 12,812 ( 18,510 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 422,640 501,858 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 435,452 $ 483,348 Six Months Ended June 30, 2026 2025 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Interest paid in cash $ 100,855 $ 111,040 Tax paid 17,720 16,592 NON-CASH INVESTING AND FINANCING TRANSACTIONS: Transfer of loans to real estate owned and other repossessed assets 2,609 4,671 Loans, held-for-sale, transferred from portfolio ( 53,592 ) ( 47,260 ) See Selected Notes to the Consolidated Financial Statements 10 Table of Contents BANNER CORPORATION AND SUBSIDIARIES SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 1: BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiary, Banner Bank (the Bank). These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In preparing these financial statements, the Company has evaluated events and transactions subsequent to June 30, 2026, for potential recognition or disclosure. In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and note disclosures have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. The information included in this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Interim results are not necessarily indicative of results for a full year or any other interim period. Note 2: ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Interim Reporting: Narrow-Scope Improvements (Subtopic 270-10) In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments in this ASU clarify the applicability of Topic 270, enhance the navigability of interim reporting requirements, and consolidate existing interim disclosure guidance. The amendments specify the form and content of interim financial statements, provide a comprehensive list of required interim disclosures, and introduce a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity. The ASU does not change the fundamental nature or scope of interim reporting requirements. This ASU is effective for all entities for interim periods within annual periods beginning after December 15, 2027, with early adoption permitted. The amendments may be applied either prospectively or retrospectively to any periods presented in the financial statements. The Company is currently evaluating this ASU but does not expect its adoption to have a material impact on the Company’s consolidated financial statements. Derivatives and Hedging: Hedge Accounting Improvements (Subtopic 815-20) In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The amendments in this ASU are intended to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative. The update clarifies and expands guidance in several areas, including allowing groups of forecasted transactions to be hedged based on “similar” rather than “shared” risk exposure, offering greater flexibility in applying cash flow hedges. Overall, the amendments respond to stakeholder concerns following ASU 2017‑12 and address complexities arising from global reference‑rate reform, ultimately facilitating the achievement and maintenance of hedge accounting for highly effective hedging relationships. This ASU is effective for all entities for annual reporting periods beginning after December 31, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted on any date on or after the issuance of this ASU. The Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements. Financial Instruments—Credit Losses: Purchased Loans (Topic 310-10): In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. The amendments in this ASU are intended to simplify and improve the accounting for acquired loans by expanding the use of the gross‑up approach, previously limited to purchased credit‑deteriorated (PCD) assets, to a new category of purchased seasoned loans, which encompasses certain acquired non‑PCD loans. Under this approach, entities recognize an allowance for expected credit losses at the acquisition date with a corresponding increase to the asset’s amortized cost basis, eliminating day 1 credit loss expense and improving comparability across acquired loan portfolios. This ASU is effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. Early adoption is permitted in an interim or annual reporting period if financial statements have not yet been issued or made available for issuance. Pending the acquisition of Pacific Financial, the Company expects to early adopt this ASU as it will apply to loans acquired following the adoption date. 11 Table of Contents Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this ASU are intended to modernize the guidance for accounting for software costs under Subtopic 350-40 and remove all references to prescriptive and sequential software development stages. This increases the operability of the cost recognition guidance by considering different methods of software development. The ASU requires that an entity begin capitalizing software costs when both of the following conditions have been met: management has authorized and committed to funding the software project; and it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”). In addition, this ASU clarifies disclosure requirements for Internal-Use Software. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The amendments may be applied using the prospective method, the modified transition approach, or retrospectively. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in the ASU require public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Specifically, they will be required to: • Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. • Include certain amounts that are already required to be disclosed under GAAP in the same disclosure as the other disaggregation requirements. • Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. • Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The amendments should be applied prospectively. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. Note 3: SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair value of securities at June 30, 2026 and December 31, 2025 are summarized as follows (in thousands): June 30, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale: U.S. Government and agency obligations $ 9,024 $ — $ ( 334 ) $ 8,690 Municipal bonds 180,084 978 ( 25,795 ) 155,267 Corporate bonds 129,089 4,601 ( 2,462 ) 131,228 Mortgage-backed or related securities 1,754,555 1,794 ( 236,782 ) 1,519,567 Asset-backed securities 200,856 288 ( 5 ) 201,139 $ 2,273,608 $ 7,661 $ ( 265,378 ) $ 2,015,891 June 30, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-Maturity: U.S. Government and agency obligations $ 221 $ — $ ( 1 ) $ 220 $ — Municipal bonds 422,397 77 ( 52,930 ) 369,407 ( 137 ) Corporate bonds 2,488 — — 2,342 ( 146 ) Mortgage-backed or related securities 504,486 — ( 88,468 ) 416,018 — $ 929,592 $ 77 $ ( 141,399 ) $ 787,987 $ ( 283 ) 12 Table of Contents December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale: U.S. Government and agency obligations $ 6,454 $ — $ ( 311 ) $ 6,143 Municipal bonds 169,386 1,070 ( 26,999 ) 143,457 Corporate bonds 115,982 4,646 ( 2,839 ) 117,789 Mortgage-backed or related securities 1,827,227 2,313 ( 233,208 ) 1,596,332 Asset-backed securities 152,422 162 ( 44 ) 152,540 $ 2,271,471 $ 8,191 $ ( 263,401 ) $ 2,016,261 December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-Maturity: U.S. Government and agency obligations $ 262 $ — $ ( 2 ) $ 260 $ — Municipal bonds 430,571 34 ( 56,311 ) 374,149 ( 145 ) Corporate bonds 2,544 — — 2,398 ( 146 ) Mortgage-backed or related securities 528,110 — ( 90,249 ) 437,861 — $ 961,487 $ 34 $ ( 146,562 ) $ 814,668 $ ( 291 ) Accrued interest receivable on held-to-maturity debt securities was $ 4.0 million and $ 4.1 million at June 30, 2026 and December 31, 2025, and $ 8.9 million and $ 8.3 million on available-for-sale debt securities at June 30, 2026 and December 31, 2025, respectively. Accrued interest receivable on securities is reported in accrued interest receivable on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses. At June 30, 2026 and December 31, 2025, gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands): June 30, 2026 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 3,331 $ ( 7 ) $ 5,359 $ ( 327 ) $ 8,690 $ ( 334 ) Municipal bonds 13,246 ( 50 ) 94,111 ( 25,745 ) 107,357 ( 25,795 ) Corporate bonds 41,824 ( 458 ) 29,720 ( 2,004 ) 71,544 ( 2,462 ) Mortgage-backed or related securities 73,622 ( 796 ) 1,306,968 ( 235,986 ) 1,380,590 ( 236,782 ) Asset-backed securities 28,997 ( 5 ) — — 28,997 ( 5 ) $ 161,020 $ ( 1,316 ) $ 1,436,158 $ ( 264,062 ) $ 1,597,178 $ ( 265,378 ) December 31, 2025 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ — $ — $ 6,143 $ ( 311 ) $ 6,143 $ ( 311 ) Municipal bonds — — 94,038 ( 26,999 ) 94,038 ( 26,999 ) Corporate bonds 11,238 ( 31 ) 50,000 ( 2,808 ) 61,238 ( 2,839 ) Mortgage-backed or related securities 50,803 ( 46 ) 1,395,325 ( 233,162 ) 1,446,128 ( 233,208 ) Asset-backed securities 10,000 ( 44 ) — — 10,000 ( 44 ) $ 72,041 $ ( 121 ) $ 1,545,506 $ ( 263,280 ) $ 1,617,547 $ ( 263,401 ) 13 Table of Contents At June 30, 2026, there were 186 securities—available-for-sale with unrealized losses, compared to 175 at December 31, 2025. Management does not believe that any remaining individual unrealized loss as of June 30, 2026 or December 31, 2025 resulted from credit loss. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no securities—available-for-sale in a nonaccrual status at June 30, 2026 or December 31, 2025. The following table presents gross gains and losses on sales and partial calls of securities available-for-sale (in thousands): Three months ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Available-for-Sale: Gross Gains $ — $ — $ 92 $ — Gross Losses — ( 3 ) ( 1,334 ) ( 3 ) Balance, end of the period $ — $ ( 3 ) $ ( 1,242 ) $ ( 3 ) The following table presents the amortized cost and estimated fair value of securities at June 30, 2026, by contractual maturity and does not reflect any required periodic payments (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. June 30, 2026 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 6,013 $ 5,838 $ 2,015 $ 1,865 Maturing after one year through five years 178,802 164,527 10,826 10,617 Maturing after five years through ten years 269,400 259,318 44,518 42,917 Maturing after ten years 1,819,393 1,586,208 872,233 732,588 $ 2,273,608 $ 2,015,891 $ 929,592 $ 787,987 The following table presents, as of June 30, 2026, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): June 30, 2026 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 313,691 $ 325,805 $ 282,822 Interest rate swap counterparties 941 941 798 Repurchase transaction accounts 197,060 197,060 161,668 Other 2,475 2,475 2,226 Total pledged securities $ 514,167 $ 526,281 $ 447,514 14 Table of Contents The Company monitors the credit quality of held-to-maturity debt securities through the use of credit ratings, which are reviewed and updated quarterly. The Company’s non-rated held-to-maturity debt securities are primarily United States government sponsored enterprise debentures carrying minimal to no credit risk. The non-rated corporate bonds primarily consist of Community Reinvestment Act related bonds secured by loan instruments from low to moderate income borrowers. The remaining non-rated held-to-maturity debt securities balance is comprised of local municipal debt from within the Company’s geographic footprint and is monitored through quarterly or annual financial review. This municipal debt is predominately essential service or unlimited general obligation backed debt. The following tables summarize the amortized cost of held-to-maturity debt securities by credit rating at June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total AAA/AA/A $ — $ 414,885 $ 500 $ 15,840 $ 431,225 Not Rated 221 7,512 1,988 488,646 498,367 $ 221 $ 422,397 $ 2,488 $ 504,486 $ 929,592 December 31, 2025 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total AAA/AA/A $ — $ 422,275 $ 500 $ 15,969 $ 438,744 Not Rated 262 8,296 2,044 512,141 522,743 $ 262 $ 430,571 $ 2,544 $ 528,110 $ 961,487 15 Table of Contents Note 4: LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES - LOANS The following table presents the loans receivable at June 30, 2026 and December 31, 2025 by class (dollars in thousands). June 30, 2026 December 31, 2025 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,229,993 10 % $ 1,138,298 10 % Investment properties 1,744,127 14 1,701,413 15 Small balance CRE 1,166,516 10 1,212,357 10 Multifamily real estate 855,862 7 850,789 7 Construction, land and land development: Commercial construction 181,843 2 156,021 1 Multifamily construction 503,058 4 514,330 5 One- to four-family construction 631,183 5 607,447 5 Land and land development 378,172 3 433,678 4 Commercial business: Commercial business 1,286,818 11 1,225,108 11 Small business scored 1,295,861 11 1,187,360 10 Agricultural business, including secured by farmland 337,487 3 353,152 3 One- to four-family residential 1,556,493 13 1,573,191 13 Consumer: Consumer—home equity revolving lines of credit 744,546 6 679,489 5 Consumer—other 82,451 1 89,054 1 Total loans 11,994,410 100 % 11,721,687 100 % Less allowance for credit losses – loans ( 161,849 ) ( 160,276 ) Net loans $ 11,832,561 $ 11,561,411 Loan amounts are net of unearned loan fees in excess of unamortized costs of $ 17.6 million as of June 30, 2026, and $ 16.5 million as of December 31, 2025. Net loans include net discounts on acquired loans of $ 1.9 million and $ 2.4 million as of June 30, 2026 and December 31, 2025, respectively. Net loans does not include accrued interest receivable. Accrued interest receivable on loans was $ 52.1 million as of June 30, 2026 and $ 48.2 million as of December 31, 2025, and was reported in accrued interest receivable on the Consolidated Statements of Financial Condition. The Company had pledged $ 8.2 billion of loans as collateral for FHLB and other borrowings at both June 30, 2026 and December 31, 2025, respectively. 16 Table of Contents Troubled Loan Modifications. Occasionally, the Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, or any combination of these modifications. The following table presents the amortized cost basis and financial effect of loans at June 30, 2026 and June 30, 2025, that were both experiencing financial difficulty and modified during the six months ended June 30, 2026 and June 30, 2025, respectively (in thousands). June 30, 2026 Term Extension Total Land and land development 2,777 2,777 Total $ 2,777 $ 2,777 June 30, 2025 Term Extension Total One- to four-family construction $ 2,055 $ 2,055 Land and land development 3,280 3,280 Total $ 5,335 $ 5,335 The Company had committed to lend no additional amounts to the borrowers included in the previous tables as of June 30, 2026, compared to commitments of $ 1.9 million at June 30, 2025. The Company closely monitors the performance of loans modified for borrowers experiencing financial difficulty to assess the effectiveness of its modification efforts. We had no loans that had been modified in the previous 12 months that were past due or on nonaccrual status at June 30, 2026. The follow ing table presents the performance at June 30, 2025 of loans that had been modified in the previous 12 months (in thousands): June 30, 2025 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Total Commercial business $ — $ — $ — $ 1,460 $ 1,460 Total $ — $ — $ — $ 1,460 $ 1,460 Loans are considered to be in payment default when they are 90 days or more past due. There were no loans that, within twelve months of the modification date, experienced a subsequent default during the six months ended June 30, 2026. The following tables present the amortized cost basis of modified loans that, within twelve months of the modification date, experienced a subsequent default during the six months ended June 30, 2025: June 30, 2025 Term Extension Total Commercial business $ 1,460 $ 1,460 Total $ 1,460 $ 1,460 The following table presents the financial effect of the loan modifications presented above for borrowers experiencing financial difficulty for the six months ended June 30, 2026 and June 30, 2025: Six Months Ended June 30, 2026 Weighted-Average Term Extension (in months) Land and land development 9 Six Months Ended June 30, 2025 Weighted-Average Term Extension (in months) One- to four-family construction 21 Land and land development 9 17 Table of Contents Credit Quality Indicators : To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, Management has implemented a risk-rating or loan grading system for its loans. The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company. Generally, loans are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings. There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship. Loans are graded on a scale of 1 to 9. A description of the general characteristics of these categories is shown below. Overall Risk Rating Definitions : Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan. Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan to exhibit characteristics of more than one risk-rating category. Consideration for the final rating is centered on the borrower’s ability to repay, in a timely fashion, both principal and interest. The Company’s risk-rating and loan grading policies are reviewed and approved annually. There were no material changes in the risk-rating or loan grading system for the periods presented. Risk Ratings 1-5: Pass Credits with risk ratings of 1 to 5 meet the definition of a pass risk rating. The strength of credits varies within the pass risk ratings, ranging from a risk rated 1 being an exceptional credit to a risk rated 5 being an acceptable credit that requires a more than normal level of supervision. Risk Rating 6: Special Mention A credit with potential weaknesses that deserves Management’s close attention is risk rated a 6. If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt. A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources. Assets in this category are expected to be in this category no more than 9-12 months as the potential weaknesses in the credit are resolved. Risk Rating 7: Substandard A credit with well-defined weaknesses that jeopardize the ability to repay in full is risk rated a 7. These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral. These are credits with a distinct possibility of loss. Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse. Risk Rating 8: Doubtful A credit with an extremely high probability of loss is risk rated 8. These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable. While some loss on doubtful credits is expected, pending events may make the amount and timing of any loss indeterminable. In these situations, taking the loss is inappropriate until the outcome of the pending event is clear. Risk Rating 9: Loss A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable bank asset is risk rated 9. Losses should be taken in the accounting period in which the credit is determined to be uncollectible. Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future. 18 Table of Contents The following tables present the Company’s portfolio of risk-rated loans by class and by grade as of June 30, 2026 and December 31, 2025 (in thousands). In addition, the tables include the gross charge-offs for the six months ended June 30, 2026 and for the year ended December 31, 2025. Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of origination. Term loans that are renewed or extended for periods longer than 90 days are presented as a new origination in the year of the most recent renewal or extension. June 30, 2026 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2026 2025 2024 2023 2022 Prior Commercial real estate - owner occupied Risk Rating Pass $ 190,655 $ 174,626 $ 170,284 $ 151,973 $ 121,946 $ 326,602 $ 63,388 $ 1,199,474 Special Mention 2,794 — 553 62 — — — 3,409 Substandard — 12,294 — — 5,881 8,935 — 27,110 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - owner occupied $ 193,449 $ 186,920 $ 170,837 $ 152,035 $ 127,827 $ 335,537 $ 63,388 $ 1,229,993 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - investment properties Risk Rating Pass $ 229,621 $ 263,570 $ 86,113 $ 125,469 $ 197,499 $ 763,090 $ 62,360 $ 1,727,722 Special Mention — — — — — 9,682 — 9,682 Substandard — — — 4,202 — 2,521 — 6,723 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - investment properties $ 229,621 $ 263,570 $ 86,113 $ 129,671 $ 197,499 $ 775,293 $ 62,360 $ 1,744,127 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multifamily real estate Risk Rating Pass $ 64,514 $ 61,879 $ 79,511 $ 70,547 $ 194,669 $ 381,085 $ 1,656 $ 853,861 Special Mention — — — — — — — — Substandard — — — — — 2,001 — 2,001 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily real estate $ 64,514 $ 61,879 $ 79,511 $ 70,547 $ 194,669 $ 383,086 $ 1,656 $ 855,862 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — 19 Table of Contents June 30, 2026 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2026 2025 2024 2023 2022 Prior Commercial construction Risk Rating Pass $ 39,092 $ 60,934 $ 38,268 $ 20,099 $ 22,715 $ — $ — $ 181,108 Special Mention — — — — — — — — Substandard — — — — — 735 — 735 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial construction $ 39,092 $ 60,934 $ 38,268 $ 20,099 $ 22,715 $ 735 $ — $ 181,843 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Multifamily construction Risk Rating Pass $ 126,773 $ 186,811 $ 135,664 $ 33,425 $ — $ — $ — $ 482,673 Special Mention — — — — — — — — Substandard — 20,385 — — — — — 20,385 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily construction $ 126,773 $ 207,196 $ 135,664 $ 33,425 $ — $ — $ — $ 503,058 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — One- to four- family construction Risk Rating Pass $ 306,909 $ 269,183 $ 27,590 $ — $ — $ — $ 21,562 $ 625,244 Special Mention — — — — — — — — Substandard — 5,201 — 738 — — — 5,939 Doubtful — — — — — — — — Loss — — — — — — — — Total One- to four- family construction $ 306,909 $ 274,384 $ 27,590 $ 738 $ — $ — $ 21,562 $ 631,183 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — 20 Table of Contents June 30, 2026 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2026 2025 2024 2023 2022 Prior Land and land development Risk Rating Pass $ 95,842 $ 149,436 $ 43,966 $ 26,264 $ 21,548 $ 32,044 $ 3,789 $ 372,889 Special Mention — — — — — — — — Substandard 2,777 — 468 182 1,004 852 — 5,283 Doubtful — — — — — — — — Loss — — — — — — — — Total Land and land development $ 98,619 $ 149,436 $ 44,434 $ 26,446 $ 22,552 $ 32,896 $ 3,789 $ 378,172 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial business Risk Rating Pass $ 72,813 $ 204,304 $ 68,323 $ 74,586 $ 112,325 $ 297,541 $ 390,412 $ 1,220,304 Special Mention 1,849 452 — 43 339 — 3,996 6,679 Substandard 20,286 1,875 1,166 2,507 982 3,358 29,661 59,835 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial business $ 94,948 $ 206,631 $ 69,489 $ 77,136 $ 113,646 $ 300,899 $ 424,069 $ 1,286,818 Current period gross charge-offs $ — $ — $ — $ 5 $ 6 $ 7 $ 418 $ 436 Agricultural business, including secured by farmland Risk Rating Pass $ 14,591 $ 17,035 $ 9,413 $ 32,499 $ 20,056 $ 77,258 $ 134,845 $ 305,697 Special Mention — — — — — 1,373 — 1,373 Substandard — — — 2,467 8,310 10,874 8,766 30,417 Doubtful — — — — — — — — Loss — — — — — — — — Total Agricultural business, including secured by farmland $ 14,591 $ 17,035 $ 9,413 $ 34,966 $ 28,366 $ 89,505 $ 143,611 $ 337,487 Current period gross charge-offs $ — $ — $ — $ 4 $ — $ — $ — $ 4 21 Table of Contents December 31, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Commercial real estate - owner occupied Risk Rating Pass $ 199,049 $ 205,626 $ 171,690 $ 105,779 $ 135,162 $ 226,813 $ 61,016 $ 1,105,135 Special Mention — 558 — 9,603 — 2,806 — 12,967 Substandard — — 288 8,534 — 11,374 — 20,196 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - owner occupied $ 199,049 $ 206,184 $ 171,978 $ 123,916 $ 135,162 $ 240,993 $ 61,016 $ 1,138,298 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - investment properties Risk Rating Pass $ 296,157 $ 106,127 $ 131,328 $ 209,997 $ 241,372 $ 642,420 $ 63,376 $ 1,690,777 Special Mention — — — — — 6,652 — 6,652 Substandard — — — — — 3,984 — 3,984 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - investment properties $ 296,157 $ 106,127 $ 131,328 $ 209,997 $ 241,372 $ 653,056 $ 63,376 $ 1,701,413 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — Multifamily real estate Risk Rating Pass $ 44,775 $ 89,961 $ 89,370 $ 233,563 $ 168,171 $ 221,236 $ 1,671 $ 848,747 Special Mention — — — — — — — — Substandard — — — — — 2,042 — 2,042 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily real estate $ 44,775 $ 89,961 $ 89,370 $ 233,563 $ 168,171 $ 223,278 $ 1,671 $ 850,789 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — 22 Table of Contents December 31, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Commercial construction Risk Rating Pass $ 61,803 $ 36,567 $ 35,243 $ 21,666 $ — $ — $ — $ 155,279 Special Mention — — — — — — — — Substandard — — — — 742 — — 742 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial construction $ 61,803 $ 36,567 $ 35,243 $ 21,666 $ 742 $ — $ — $ 156,021 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — Multifamily construction Risk Rating Pass $ 190,491 $ 180,871 $ 109,466 $ — $ — $ — $ 9,126 $ 489,954 Special Mention 5,100 — — — — — — 5,100 Substandard 19,276 — — — — — — 19,276 Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily construction $ 214,867 $ 180,871 $ 109,466 $ — $ — $ — $ 9,126 $ 514,330 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — One- to four- family construction Risk Rating Pass $ 494,781 $ 82,237 $ — $ — $ — $ — $ 22,919 $ 599,937 Special Mention 2,381 — — — — — — 2,381 Substandard 4,391 — 738 — — — — 5,129 Doubtful — — — — — — — — Loss — — — — — — — — Total One- to four- family construction $ 501,553 $ 82,237 $ 738 $ — $ — $ — $ 22,919 $ 607,447 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — 23 Table of Contents December 31, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Land and land development Risk Rating Pass $ 223,638 $ 104,496 $ 31,388 $ 23,470 $ 18,588 $ 16,033 $ 7,156 $ 424,769 Special Mention 4,472 — — — — — — 4,472 Substandard 638 468 1,338 1,286 99 608 — 4,437 Doubtful — — — — — — — — Loss — — — — — — — — Total Land and land development $ 228,748 $ 104,964 $ 32,726 $ 24,756 $ 18,687 $ 16,641 $ 7,156 $ 433,678 Gross charge-offs for the year ended December 31, 2025 $ 218 $ — $ — $ — $ — $ — $ — $ 218 Commercial business Risk Rating Pass $ 206,830 $ 114,469 $ 82,152 $ 126,537 $ 68,700 $ 252,020 $ 290,225 $ 1,140,933 Special Mention — — — 213 — — 44,672 44,885 Substandard 17,131 2,648 2,498 1,264 901 3,357 11,491 39,290 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial business $ 223,961 $ 117,117 $ 84,650 $ 128,014 $ 69,601 $ 255,377 $ 346,388 $ 1,225,108 Gross charge-offs for the year ended December 31, 2025 $ — $ 1,941 $ 908 $ — $ 18 $ 164 $ 567 $ 3,598 Agricultural business, including secured by farmland Risk Rating Pass $ 17,455 $ 12,989 $ 34,593 $ 20,096 $ 21,745 $ 58,558 $ 142,528 $ 307,964 Special Mention 388 — — 648 — 3,289 319 4,644 Substandard 6,289 74 4,445 8,424 1,560 11,565 8,187 40,544 Doubtful — — — — — — — — Loss — — — — — — — — Total Agricultural business, including secured by farmland $ 24,132 $ 13,063 $ 39,038 $ 29,168 $ 23,305 $ 73,412 $ 151,034 $ 353,152 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ 730 $ 361 $ — $ 1,325 $ — $ 2,416 24 Table of Contents The following tables present the Company’s portfolio of non-risk-rated loans by class and delinquency status as of June 30, 2026 and December 31, 2025 (in thousands). In addition, the tables include the gross charge-offs for the six months ended June 30, 2026 and for the year ended December 31, 2025. Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of origination. Term loans that are renewed or extended for periods longer than 90 days are presented as a new origination in the year of the most recent renewal or extension. June 30, 2026 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2026 2025 2024 2023 2022 Prior Small balance CRE Past Due Category Current $ 49,162 $ 97,261 $ 71,720 $ 82,933 $ 190,204 $ 673,018 $ — $ 1,164,298 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — — — — 881 — — 881 90 Days + Past Due — — 579 58 — 700 — 1,337 Total Small balance CRE $ 49,162 $ 97,261 $ 72,299 $ 82,991 $ 191,085 $ 673,718 $ — $ 1,166,516 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Small business scored Past Due Category Current $ 192,742 $ 212,450 $ 172,566 $ 130,795 $ 184,875 $ 252,527 $ 143,263 $ 1,289,218 30-59 Days Past Due — 269 99 1,559 906 162 496 3,491 60-89 Days Past Due — 26 178 308 — — 5 517 90 Days + Past Due — 11 46 1,045 1,142 391 — 2,635 Total Small business scored $ 192,742 $ 212,756 $ 172,889 $ 133,707 $ 186,923 $ 253,080 $ 143,764 $ 1,295,861 Current period gross charge-offs $ 54 $ 18 $ 46 $ 367 $ 167 $ 68 $ — $ 720 One- to four- family residential Past Due Category Current $ 72,829 $ 92,831 $ 178,489 $ 270,043 $ 480,219 $ 435,185 $ — $ 1,529,596 30-59 Days Past Due 75 — 104 — — 681 — 860 60-89 Days Past Due — 619 2,326 794 1,433 1,796 — 6,968 90 Days + Past Due — 1,316 2,390 3,328 5,608 6,427 — 19,069 Total One- to four- family residential $ 72,904 $ 94,766 $ 183,309 $ 274,165 $ 487,260 $ 444,089 $ — $ 1,556,493 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — 25 Table of Contents June 30, 2026 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2026 2025 2024 2023 2022 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 3,558 $ 814 $ 1,498 $ 2,631 $ 6,719 $ 12,208 $ 710,795 $ 738,223 30-59 Days Past Due — 91 35 279 856 403 1,420 3,084 60-89 Days Past Due — — 45 95 — 292 — 432 90 Days + Past Due — — 311 566 298 1,632 — 2,807 Total Consumer—home equity revolving lines of credit $ 3,558 $ 905 $ 1,889 $ 3,571 $ 7,873 $ 14,535 $ 712,215 $ 744,546 Current period gross charge-offs $ — $ — $ — $ — $ — $ 45 $ — $ 45 Consumer-other Past Due Category Current $ 2,199 $ 9,920 $ 4,531 $ 3,373 $ 18,074 $ 23,219 $ 20,805 $ 82,121 30-59 Days Past Due 1 — — 4 44 54 120 223 60-89 Days Past Due — — 15 — — 47 45 107 90 Days + Past Due — — — — — — — — Total Consumer-other $ 2,200 $ 9,920 $ 4,546 $ 3,377 $ 18,118 $ 23,320 $ 20,970 $ 82,451 Current period gross charge-offs $ — $ 38 $ 26 $ 56 $ 75 $ 174 $ 472 $ 841 26 Table of Contents December 31, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Small balance CRE Past Due Category Current $ 103,382 $ 72,801 $ 85,106 $ 198,097 $ 206,554 $ 543,983 $ — $ 1,209,923 30-59 Days Past Due — — — 1,283 — 113 — 1,396 60-89 Days Past Due — — — — — 513 — 513 90 Days + Past Due — — 66 — 459 — — 525 Total Small balance CRE $ 103,382 $ 72,801 $ 85,172 $ 199,380 $ 207,013 $ 544,609 $ — $ 1,212,357 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — Small business scored Past Due Category Current $ 228,509 $ 185,753 $ 146,606 $ 201,580 $ 125,471 $ 152,648 $ 140,156 $ 1,180,723 30-59 Days Past Due 53 122 122 2,394 195 1,403 167 4,456 60-89 Days Past Due 131 — 135 353 6 — 152 777 90 Days + Past Due — — 532 239 226 407 — 1,404 Total Small business scored $ 228,693 $ 185,875 $ 147,395 $ 204,566 $ 125,898 $ 154,458 $ 140,475 $ 1,187,360 Gross charge-offs for the year ended December 31, 2025 $ 75 $ 181 $ 862 $ 623 $ 149 $ 60 $ — $ 1,950 One- to four- family residential Past Due Category Current $ 111,613 $ 193,605 $ 281,207 $ 496,857 $ 225,148 $ 230,488 $ — $ 1,538,918 30-59 Days Past Due — 1,695 3,034 2,228 1,325 1,433 — 9,715 60-89 Days Past Due — 1,911 — 1,315 453 1,455 — 5,134 90 Days + Past Due 357 4,170 3,079 5,022 4,421 2,375 — 19,424 Total One- to four- family residential $ 111,970 $ 201,381 $ 287,320 $ 505,422 $ 231,347 $ 235,751 $ — $ 1,573,191 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ 13 $ — $ 13 27 Table of Contents December 31, 2025 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2025 2024 2023 2022 2021 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 3,526 $ 2,138 $ 2,781 $ 6,796 $ 2,719 $ 8,126 $ 646,536 $ 672,622 30-59 Days Past Due — — 360 908 536 160 1,853 3,817 60-89 Days Past Due — — 208 345 — 300 — 853 90 Days + Past Due — 100 669 345 — 1,083 — 2,197 Total Consumer—home equity revolving lines of credit $ 3,526 $ 2,238 $ 4,018 $ 8,394 $ 3,255 $ 9,669 $ 648,389 $ 679,489 Gross charge-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ — $ — Consumer-other Past Due Category Current $ 11,532 $ 5,810 $ 3,783 $ 20,899 $ 6,145 $ 19,294 $ 21,054 $ 88,517 30-59 Days Past Due — 6 45 31 — 94 151 327 60-89 Days Past Due — 11 10 — 10 17 77 125 90 Days + Past Due — — — 51 — 34 — 85 Total Consumer-other $ 11,532 $ 5,827 $ 3,838 $ 20,981 $ 6,155 $ 19,439 $ 21,282 $ 89,054 Gross charge-offs for the year ended December 31, 2025 $ 21 $ 18 $ 57 $ 89 $ 50 $ 189 $ 1,195 $ 1,619 28 Table of Contents The following tables provide the amortized cost basis of collateral-dependent loans as of June 30, 2026 and December 31, 2025 (in thousands). Our collateral dependent loans presented in the tables below have no significant concentrations by property type or location. June 30, 2026 Real Estate Equipment Inventory Total Commercial real estate: Owner-occupied $ 797 $ 49 $ 183 $ 1,029 Small balance CRE 1,047 — — 1,047 Construction, land and land development: Multifamily construction 8,288 — — 8,288 One- to four-family construction 2,006 — — 2,006 Commercial business Commercial business 715 — — 715 Small business scored 243 — — 243 Agricultural business, including secured by farmland 2,912 — — 2,912 One- to four-family residential 12,790 — — 12,790 Consumer: Consumer—home equity revolving lines of credit 238 — — 238 Total $ 29,036 $ 49 $ 183 $ 29,268 December 31, 2025 Real Estate Equipment Inventory Total Commercial real estate: Small balance CRE $ 460 $ — $ — $ 460 Construction, land and land development: One- to four-family construction 2,006 — — 2,006 Land and land development 1,970 — — 1,970 Commercial business Commercial business 715 — 1,460 2,175 Small business scored 239 — — 239 Agricultural business, including secured by farmland 3,064 1,491 — 4,555 One- to four-family residential 12,466 — — 12,466 Consumer: Consumer—home equity revolving lines of credit 252 — — 252 Total $ 21,172 $ 1,491 $ 1,460 $ 24,123 29 Table of Contents The following tables provide additional detail on the age analysis of the Company’s past due loans as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Non-accrual with no Allowance Total Non-accrual (1) Loans 90 Days or More Past Due and Accruing Commercial real estate: Owner-occupied $ 2,336 $ 296 $ 1,030 $ 3,662 $ 1,226,331 $ 1,229,993 $ 1,029 $ 1,029 $ — Investment properties — — — — 1,744,127 1,744,127 — — — Small balance CRE — 881 1,337 2,218 1,164,298 1,166,516 1,045 1,103 234 Multifamily real estate 157 — — 157 855,705 855,862 — — — Construction, land and land development: Commercial construction — — — — 181,843 181,843 — — — Multifamily construction — — 8,288 8,288 494,770 503,058 8,288 8,288 — One- to four-family construction — 564 2,006 2,570 628,613 631,183 2,006 2,006 — Land and land development — 492 1,969 2,461 375,711 378,172 — 2,354 — Commercial business: Commercial business 42 248 1,439 1,729 1,285,089 1,286,818 716 2,211 — Small business scored 3,491 517 2,635 6,643 1,289,218 1,295,861 243 4,757 — Agricultural business, including secured by farmland — — 55 55 337,432 337,487 — 2,967 — One- to four-family residential 860 6,968 19,069 26,897 1,529,596 1,556,493 10,415 23,398 1,427 Consumer: Consumer—home equity revolving lines of credit 3,084 432 2,807 6,323 738,223 744,546 238 4,784 265 Consumer—other 223 107 — 330 82,121 82,451 — — — Total $ 10,193 $ 10,505 $ 40,635 $ 61,333 $ 11,933,077 $ 11,994,410 $ 23,980 $ 52,897 $ 1,926 (1) The Company did not recognize any interest income on non-accrual loans during the six months ended June 30, 2026. 30 Table of Contents December 31, 2025 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Non-accrual with no Allowance Total Non-accrual (1) Loans 90 Days or More Past Due and Accruing Commercial real estate: Owner-occupied $ 260 $ — $ — $ 260 $ 1,138,038 $ 1,138,298 $ — $ — $ — Investment properties — — — — 1,701,413 1,701,413 — — — Small balance CRE 1,396 513 525 2,434 1,209,923 1,212,357 459 525 — Multifamily real estate — — — — 850,789 850,789 — — — Construction, land and land development: Commercial construction — — — — 156,021 156,021 — — — Multifamily construction — — — — 514,330 514,330 — — — One- to four-family construction 289 — 2,007 2,296 605,151 607,447 738 738 1,268 Land and land development 623 517 3,298 4,438 429,240 433,678 1,970 4,437 — Commercial business: Commercial business 992 — 2,813 3,805 1,221,303 1,225,108 716 3,390 — Small business scored 4,456 777 1,404 6,637 1,180,723 1,187,360 239 3,361 — Agricultural business, including secured by farmland — — 1,546 1,546 351,606 353,152 1,490 4,609 — One-to four-family residential 9,715 5,134 19,424 34,273 1,538,918 1,573,191 10,272 19,855 2,698 Consumer: Consumer—home equity revolving lines of credit 3,817 853 2,197 6,867 672,622 679,489 252 4,559 114 Consumer—other 327 125 85 537 88,517 89,054 — 51 34 Total $ 21,875 $ 7,919 $ 33,299 $ 63,093 $ 11,658,594 $ 11,721,687 $ 16,136 $ 41,525 $ 4,114 (1) The Company did not recognize any interest income on non-accrual loans during the year ended December 31, 2025. 31 Table of Contents The following tables provide the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2026 and 2025 (in thousands): For the Three Months Ended June 30, 2026 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 41,788 $ 9,201 $ 34,589 $ 39,452 $ 4,930 $ 19,640 $ 10,752 $ 160,352 Provision/(recapture) for credit losses 367 658 ( 2,470 ) 1,784 720 ( 174 ) 713 1,598 Recoveries 12 — 5 171 213 12 63 476 Charge-offs — — — ( 293 ) ( 4 ) — ( 280 ) ( 577 ) Ending balance $ 42,167 $ 9,859 $ 32,124 $ 41,114 $ 5,859 $ 19,478 $ 11,248 $ 161,849 For the Six Months Ended June 30, 2026 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 41,599 $ 9,805 $ 35,508 $ 37,785 $ 5,567 $ 19,552 $ 10,460 $ 160,276 Provision/(recapture) for credit losses 545 54 ( 3,393 ) 4,233 79 ( 99 ) 1,471 2,890 Recoveries 23 — 9 252 217 25 203 729 Charge-offs — — — ( 1,156 ) ( 4 ) — ( 886 ) ( 2,046 ) Ending balance $ 42,167 $ 9,859 $ 32,124 $ 41,114 $ 5,859 $ 19,478 $ 11,248 $ 161,849 32 Table of Contents For the Three Months Ended June 30, 2025 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 40,076 $ 10,109 $ 32,042 $ 38,665 $ 5,641 $ 20,752 $ 10,038 $ 157,323 Provision/(recapture) for credit losses 907 ( 191 ) 2,082 457 936 107 ( 97 ) 4,201 Recoveries 53 — — 361 1 58 168 641 Charge-offs — — — ( 892 ) ( 362 ) — ( 410 ) ( 1,664 ) Ending balance $ 41,036 $ 9,918 $ 34,124 $ 38,591 $ 6,216 $ 20,917 $ 9,699 $ 160,501 For the Six Months Ended June 30, 2025 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Allowance for credit losses - loans: Beginning balance $ 40,830 $ 10,308 $ 29,038 $ 38,611 $ 5,727 $ 20,807 $ 10,200 $ 155,521 Provision/(recapture) for credit losses 96 ( 390 ) 5,086 3,255 840 ( 123 ) ( 14 ) 8,750 Recoveries 110 — — 918 11 246 287 1,572 Charge-offs — — — ( 4,193 ) ( 362 ) ( 13 ) ( 774 ) ( 5,342 ) Ending balance $ 41,036 $ 9,918 $ 34,124 $ 38,591 $ 6,216 $ 20,917 $ 9,699 $ 160,501 33 Table of Contents Note 5: GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS Goodwill and Other Intangible Assets: At June 30, 2026, intangible assets are comprised of goodwill and core deposit intangibles (CDI) acquired in business combinations. Goodwill represents the excess of the purchase consideration paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination, and is not amortized but is reviewed at least annually for impairment. The Company has identified one reporting unit for the purpose of evaluating goodwill for impairment. The Company completed an assessment of qualitative factors as of December 31, 2025 and concluded that no further analysis was required as it was more likely than not that the fair value of the reporting unit exceeded the carrying value. CDI represents the value of transaction-related deposits and the value of the client relationships associated with the deposits. The Company amortizes CDI assets over their estimated useful lives and reviews them at least annually for events or circumstances that could impair their value. The following table summarizes the changes in the Company’s goodwill and other intangibles for the year ended December 31, 2025 and the six months ended June 30, 2026 (in thousands): Goodwill CDI Total Balance, December 31, 2024 $ 373,121 $ 3,058 $ 376,179 Amortization — ( 1,567 ) ( 1,567 ) Balance, December 31, 2025 373,121 1,491 374,612 Amortization — ( 512 ) ( 512 ) Balance, June 30, 2026 $ 373,121 $ 979 $ 374,100 The following table presents the estimated amortization expense with respect to CDI as of June 30, 2026, for the periods indicated (in thousands): Estimated Amortization Remainder of 2026 $ 392 2027 426 2028 126 2029 35 $ 979 Mortgage Servicing Rights: Mortgage and Small Business Administration (SBA) servicing rights are reported in other assets. SBA servicing rights are initially recorded and carried at fair value. Mortgage servicing rights are initially recognized at fair value and are amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Mortgage servicing rights are subsequently evaluated for impairment based upon the fair value of the rights compared to the amortized cost (remaining unamortized initial fair value). If the fair value is less than the amortized cost, a valuation allowance is created through an impairment charge to servicing fee income. However, if the fair value is greater than the amortized cost, the amount above the amortized cost is not recognized in the carrying value. The unpaid principal balance of loans for which mortgage and SBA servicing rights have been recognized totaled $ 2.75 billion and $ 2.77 billion at June 30, 2026 and December 31, 2025, respectively. Custodial accounts maintained in connection with this servicing totaled $ 19.9 million and $ 13.1 million at June 30, 2026 and December 31, 2025, respectively. An analysis of the mortgage and SBA servicing rights for the three and six months ended June 30, 2026 and 2025 is presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Balance, beginning of the period $ 12,412 $ 13,421 $ 12,602 $ 13,487 Additions—amounts capitalized 886 627 1,547 1,243 Additions—through purchase — — — 2 Amortization (1) ( 891 ) ( 867 ) ( 1,729 ) ( 1,636 ) Fair value adjustments (2) ( 13 ) 84 ( 26 ) 169 Balance, end of the period $ 12,394 $ 13,265 $ 12,394 $ 13,265 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. (2) Fair value adjustments relate to SBA servicing rights. These adjustments are estimated based on an independent dealer analysis by discounting estimated net future cash flows from servicing SBA loans. 34 Table of Contents Note 6: DEPOSITS Deposits consisted of the following at June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 December 31, 2025 Non-interest-bearing accounts $ 4,542,942 $ 4,489,839 Interest-bearing checking 2,623,149 2,609,080 Regular savings accounts 3,853,612 3,723,922 Money market accounts 1,296,869 1,388,001 Total interest-bearing transaction and savings accounts 7,773,630 7,721,003 Certificates of deposit: Certificates of deposit greater than or equal to $250,000 516,042 528,102 Certificates of deposit less than $250,000 956,979 1,004,202 Total certificates of deposit 1,473,021 1,532,304 Total deposits $ 13,789,593 $ 13,743,146 Included in total deposits: Public fund transaction and savings accounts $ 413,173 $ 373,529 Public fund interest-bearing certificates 34,794 34,431 Total public deposits $ 447,967 $ 407,960 Total brokered certificates of deposit $ — $ 50,002 Scheduled maturities and weighted average interest rates of certificates of deposit at June 30, 2026, are as follows (dollars in thousands): June 30, 2026 Amount Weighted Average Rate Maturing in one year or less $ 1,433,276 3.04 % Maturing after one year through two years 28,945 2.07 Maturing after two years through three years 6,651 0.63 Maturing after three years through four years 1,750 0.91 Maturing after four years through five years 1,991 0.64 Maturing after five years 408 0.52 Total certificates of deposit $ 1,473,021 3.01 % 35 Table of Contents Note 7: FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents estimated fair values of the Company’s financial instruments as of June 30, 2026 and December 31, 2025, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands): June 30, 2026 December 31, 2025 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 435,452 $ 435,452 $ 422,640 $ 422,640 Securities—available-for-sale 2 1,985,530 1,985,530 1,985,990 1,985,990 Securities—available-for-sale 3 30,361 30,361 30,271 30,271 Securities—held-to-maturity 2 924,293 783,000 955,459 808,965 Securities—held-to-maturity 3 5,016 4,987 5,737 5,703 Loans held for sale 2 27,160 27,203 42,902 43,062 Loans receivable, net 3 11,832,561 11,827,479 11,561,411 11,497,137 Equity securities 1 678 678 406 406 FHLB stock 3 24,209 24,209 16,476 16,476 Bank-owned life insurance 1 324,164 324,164 319,347 319,347 Mortgage servicing rights 3 11,316 37,538 11,498 34,862 SBA servicing rights 3 1,078 1,078 1,104 1,104 Investments in limited partnerships 3 16,105 16,105 15,566 15,566 Derivatives: Interest rate swaps 2 8,531 8,531 9,978 9,978 Interest rate lock and forward sales commitments 2,3 301 301 333 333 Liabilities: Demand, interest checking and money market accounts 2 8,462,960 8,462,960 8,486,920 8,486,920 Regular savings 2 3,853,612 3,853,612 3,723,922 3,723,922 Certificates of deposit 2 1,473,021 1,466,034 1,532,304 1,527,803 FHLB advances 2 320,000 320,000 150,000 150,000 Other borrowings 2 114,497 114,497 107,715 107,715 Junior subordinated debentures 3 79,652 79,652 79,151 79,151 Derivatives: Interest rate swaps 2 19,007 19,007 19,207 19,207 Interest rate lock and forward sales commitments 2,3 180 180 151 151 Risk participation agreement 2 2 2 5 5 The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). When measuring fair value, Management will maximize the use of observable inputs and minimize the use of unobservable inputs whenever possible. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret available data and develop fair value estimates. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values. In addition, reasonable comparability between financial institutions may be limited due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. 36 Table of Contents Items Measured at Fair Value on a Recurring Basis: The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Level 1 Level 2 Level 3 Total Assets: Securities—available-for-sale U.S. Government and agency obligations $ — $ 8,690 $ — $ 8,690 Municipal bonds — 155,267 — 155,267 Corporate bonds — 100,867 30,361 131,228 Mortgage-backed or related securities — 1,519,567 — 1,519,567 Asset-backed securities — 201,139 — 201,139 — 1,985,530 30,361 2,015,891 Loans held for sale (1) — 17,139 — 17,139 Equity securities 678 — — 678 SBA servicing rights — — 1,078 1,078 Investment in limited partnerships — — 14,625 14,625 Derivatives Interest rate swaps — 8,531 — 8,531 Interest rate lock and forward sales commitments — — 301 301 $ 678 $ 2,011,200 $ 46,365 $ 2,058,243 Liabilities: Junior subordinated debentures $ — $ — $ 79,652 $ 79,652 Derivatives Interest rate swaps — 19,007 — 19,007 Interest rate lock and forward sales commitments — 91 89 180 Risk participation agreement — 2 — 2 $ — $ 19,100 $ 79,741 $ 98,841 37 Table of Contents December 31, 2025 Level 1 Level 2 Level 3 Total Assets: Securities—available-for-sale U.S. Government and agency obligations $ — $ 6,143 $ — $ 6,143 Municipal bonds — 143,457 — 143,457 Corporate bonds — 87,518 30,271 117,789 Mortgage-backed or related securities — 1,596,332 — 1,596,332 Asset-backed securities — 152,540 — 152,540 — 1,985,990 30,271 2,016,261 Loans held for sale (1) — 34,586 — 34,586 Equity securities 406 — — 406 SBA servicing rights — — 1,104 1,104 Investment in limited partnerships — — 14,545 14,545 Derivatives Interest rate swaps — 9,978 — 9,978 Interest rate lock and forward sales commitments — — 333 333 $ 406 $ 2,030,554 $ 46,253 $ 2,077,213 Liabilities: Junior subordinated debentures $ — $ — $ 79,151 $ 79,151 Derivatives Interest rate swaps — 19,207 — 19,207 Interest rate lock and forward sales commitments — 83 68 151 Risk participation agreement — 5 — 5 $ — $ 19,295 $ 79,219 $ 98,514 (1) The unpaid principal balance of residential mortgage loans held for sale carried at fair value on a recurring basis was $ 16.7 million and $ 33.6 million at June 30, 2026 and December 31, 2025, respectively. The following methods were used to estimate the fair value of each class of financial instruments above: Securities: The estimated fair values of investment securities and mortgage-backed securities are based on current active market quotes, when available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used, which is considered Level 2. Due to limited activity in the trust preferred securities (TPS) markets, which reduces the observability of market spreads for certain TPS securities included in Corporate Bonds, Management has classified these securities as Level 3. Management periodically reviews pricing information from third-party pricing services and validates the reported fair values against other sources. Loans Held for Sale: Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Equity Securities: Equity securities are invested in a publicly traded stock. Fair values are based on daily quoted market prices. SBA Servicing Rights: Fair values are estimated based on an independent dealer analysis that discounts estimated net future cash flows from servicing. Key assumptions include prepayment speeds, delinquency and foreclosure rates, discount rates, servicing costs, and timing of cash flows. The SBA servicing portfolio is stratified by loan type, and fair value estimates are adjusted based on the serviced loan interest rates versus current rates on new originations since the most recent independent analysis. Investments in Limited Partnerships: Fair values are estimated using the practical expedient method, based on the Company’s ownership interest in partners’ capital with a proportionate share of net assets attributed to the Company for each limited partnership. Junior Subordinated Debentures: Fair values are estimated using an income approach. Significant inputs include a credit risk adjusted spread and the three-month SOFR (Secured Overnight Financing Rate). The credit-risk-adjusted spread reflects the nonperformance risk of the liability. The Company uses an external valuation firm to validate the reasonableness of this spread. The junior subordinated debentures are carried at fair value, representing the estimated amount that would be paid to transfer these liabilities in an orderly transaction among market participants. Due to limited activity in the TPS markets, which reduces the observability of market spreads, these instruments are classified as Level 3 measurements. 38 Table of Contents Derivatives: Derivatives include interest rate swap agreements, interest rate lock commitments to originate loans held for sale, forward sales contracts to sell loans and securities related to mortgage banking activities and risk participation agreements. Fair values are generally based on dealer quotes and secondary market sources. Because interest rate lock commitments use a pull-through rate that is considered an unobservable input, these derivatives are classified as Level 3 measurements. Off-Balance Sheet Items: Off-balance sheet financial instruments include unfunded commitments to extend credit, including standby letters of credit, and commitments to purchase investment securities. The fair value of these instruments is not considered to be material. Limitations: The fair value estimates presented are based on information available to Management as of June 30, 2026 and December 31, 2025. The factors used in these estimates are subject to change after the measurement date, therefore, current fair value estimates may differ materially from the amounts presented. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3): The following table provides a description of the valuation techniques, unobservable inputs, and quantitative and qualitative information about the unobservable inputs used in the fair value measurements of the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and non-recurring basis at June 30, 2026 and December 31, 2025: Weighted Average Rate or Range Financial Instruments Valuation Technique Unobservable Inputs June 30, 2026 December 31, 2025 Corporate bonds (TPS) Discounted cash flows Discount rate 7.00 % 6.91 % Junior subordinated debentures Discounted cash flows Discount rate 7.00 % 6.91 % Loans individually evaluated Collateral valuations Discount to appraised value 8.75 % to 10.00 % 0 % to 8.75 % Interest rate lock commitments Pricing model Pull-through rate 89.06 % 88.86 % SBA servicing rights Discounted cash flows Constant prepayment rate 18.12 % 18.14 % Trust preferred securities : Management believes that the credit -risk-adjusted spread used to develop the discount rate utilized in the fair value measurement of TPS is indicative of the risk premium a willing market participant would require under current market conditions for instruments with similar contractual rates, terms, conditions, credit risk profiles and expected probabilities of default. Management attributes the change in fair value of these instruments, compared to their par value, primarily to general market adjustments to the risk premiums for these types of assets subsequent to their issuance. Junior subordinated debentures : Similar to the TPS discussed above, Management believes that the credit-risk-adjusted spread utilized in the fair value measurement of the junior subordinated debentures is indicative of the risk premium a willing market participant would require under current market conditions for an issuer with Banner’s credit risk profile. Management attributes the change in fair value of the junior subordinated debentures compared to their par value primarily to general market adjustments to the risk premiums for these types of liabilities subsequent to their issuance. Future contractions in the risk-adjusted spread relative to the spread currently used to estimate the fair value of the Company’s junior subordinated debentures at fair value as of June 30, 2026, or the passage of time, will result in negative fair value adjustments. At June 30, 2026, the discount rate utilized was based on a credit spread of 326 basis points and three-month SOFR of 373 basis points. Interest rate lock commitments: The fair value of the interest rate lock commitments is based on secondary market sources adjusted for an estimated pull-through rate. The pull-through rate is based on historical loan closing rates for similar interest rate lock commitments. An increase or decrease in the pull-through rate would have a corresponding, positive or negative fair value adjustment. SBA servicing asset: The constant prepayment rate (CPR) is set based on industry data. An increase in the CPR would result in a negative fair value adjustment, while a decrease in CPR would result in a positive fair value adjustment. 39 Table of Contents The following tables provide a reconciliation of the assets and liabilities measured for which fair value is measured using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, 2026 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 30,314 $ 79,472 $ ( 55 ) $ 14,860 $ 1,091 Net change recognized in earnings 91 — 267 ( 325 ) ( 13 ) Net change recognized in accumulated other comprehensive income (AOCI) ( 44 ) 180 — — — Purchases, issuances and settlements — — — 90 — Ending balance at June 30, 2026 $ 30,361 $ 79,652 $ 212 $ 14,625 $ 1,078 Six Months Ended June 30, 2026 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 30,271 $ 79,151 $ 265 $ 14,545 $ 1,104 Net change recognized in earnings 178 — ( 53 ) ( 209 ) ( 26 ) Net change recognized in AOCI ( 88 ) 501 — — — Purchases, issuances and settlements — — — 289 — Ending balance at June 30, 2026 $ 30,361 $ 79,652 $ 212 $ 14,625 $ 1,078 Three Months Ended June 30, 2025 Level 3 Fair Value Inputs TPS Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 25,756 $ 67,711 $ 305 $ 15,025 $ 954 Net change recognized in earnings 79 — 186 92 84 Net change recognized in AOCI 2,109 5,655 — — — Purchases, issuances and settlements — — — 443 — Ending balance at June 30, 2025 $ 27,944 $ 73,366 $ 491 $ 15,560 $ 1,038 Six Months Ended June 30, 2025 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest Rate Lock and Forward Sales Commitments Investments in Limited Partnerships SBA Servicing Asset Beginning balance $ 25,685 $ 67,477 $ 108 $ 13,955 $ 869 Net change recognized in earnings 153 — 383 372 169 Net change recognized in AOCI 2,106 5,889 — — — Purchases, issuances and settlements — — — 1,233 — Ending balance at June 30, 2025 $ 27,944 $ 73,366 $ 491 $ 15,560 $ 1,038 Interest income, dividends and amortization related to TPS are recorded as a component of interest income. Interest expense related to the junior subordinated debentures is measured based on contractual interest rates and reported in interest expense. The change in fair value of the junior subordinated debentures, which represents changes in instrument specific credit risk of the liability, and the change in fair value of TPS securities are recorded in other comprehensive income. Changes in the estimated fair value of investments in limited partnerships and the SBA servicing asset are recorded as a component of non-interest income. Changes in the estimated fair value of interest rate lock and forward sales commitments are included in mortgage banking operations in non-interest income. 40 Table of Contents Items Measured at Fair Value on a Non-recurring Basis: The following tables present financial assets and liabilities for which fair value is measured on a non-recurring basis and the level within the fair value hierarchy of the related fair value measurements for those assets as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 4,727 $ 4,727 Real estate owned (REO) — — 5,720 5,720 December 31, 2025 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 5,607 $ 5,607 REO — — 5,578 5,578 Loans individually evaluated : Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. When the Bank determines that foreclosure is probable, the expected credit loss is measured based on the estimated fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Bank measures the expected credit loss for a loan using the estimated fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Bank’s assessment as of the reporting date. In both cases, if the estimated fair value of the collateral is less than the amortized cost basis of the loan, the Bank will recognize an allowance as the difference between the estimated fair value of the collateral, less costs to sell (if applicable) and the amortized cost basis of the loan. If the estimated fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off. Subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported. REO : The Company records REO (acquired through a lending relationship) at estimated fair value on a non-recurring basis. Fair value adjustments on REO are based on updated real estate appraisals which are based on current market conditions. All REO properties are recorded at the lower of the estimated fair value of the real estate, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Banner considers any valuation inputs related to REO to be Level 3 inputs. The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed. Note 8: INCOME TAXES, DEFERRED TAXES, AND TAX CREDIT INVESTMENTS As of June 30, 2026, the Company had a net deferred tax asset of $ 125.3 million, compared to $ 127.6 million at December 31, 2025. In addition, the Company has estimated $ 2.0 million of unrecognized tax benefits related to uncertain tax positions. The Company recorded income tax expense of $ 24.1 million and $ 21.2 million for the six months ended June 30, 2026 and 2025, respectively, representing an effective tax rate of 18.9 % for both periods. The effective tax rates differed from the statutory rate principally due to the effects of tax-exempt income, certain tax credits, and tax benefits related to restricted stock vesting. Tax credit investments: The Company invests in low income housing tax credit funds that are designed to generate a return primarily through the realization of federal tax credits. The Company accounts for these investments by amortizing the cost of these tax credit investments over the life of the investment using a proportional amortization method and this tax credit investment amortization expense is a component of the provision for income taxes. The current balance of these tax credit investments is included in other assets, while the unfunded commitments are included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 December 31, 2025 Tax Credit Investments: Total commitments $ 201,816 $ 215,688 Unfunded commitments 96,719 118,471 41 Table of Contents The following table presents other information related to the Company’s tax credit investments for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Tax credits and other tax benefits recognized $ 5,574 $ 4,331 $ 11,148 $ 8,662 Tax credit amortization expense included in provision for income taxes 4,086 3,510 8,172 7,020 Note 9: CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) The following table reconciles basic to diluted weighted average shares outstanding used to calculate earnings per share data for the three and six months ended June 30, 2026 and 2025 (in thousands, except shares and per share data): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 48,886 $ 45,496 $ 103,602 $ 90,631 Basic weighted average shares outstanding 34,012,611 34,627,433 34,025,849 34,568,948 Dilutive effect of unvested restricted stock 116,562 111,515 171,247 192,096 Diluted weighted average shares outstanding 34,129,173 34,738,948 34,197,096 34,761,044 Earnings per common share Basic $ 1.44 $ 1.31 $ 3.04 $ 2.62 Diluted $ 1.43 $ 1.31 $ 3.03 $ 2.61 Anti-dilutive restricted stock excluded from the diluted weighted average shares outstanding calculation — 20,428 — — Note 10: STOCK-BASED COMPENSATION PLANS The Company operates the 2014 Omnibus Incentive Plan (the 2014 Plan), the 2018 Omnibus Incentive Plan (the 2018 Plan) and the 2023 Omnibus Incentive Plan (the 2023 Plan), all of which were approved by its shareholders. The purpose of these plans is to promote the success and enhance the value of the Company by providing a means for attracting and retaining highly skilled employees, officers and directors of the Company and linking their personal interests with those of the Company’s shareholders. Under these plans, the Company currently has outstanding awards of restricted stock shares and restricted stock units. The Company reserved 900,000 shares of its common stock for issuance under the 2014 Plan in connection with the settlement of awards. As of June 30, 2026, 580,576 restricted stock units have been granted under the 2014 Plan of which 44,084 were unvested. No further awards will be granted under the 2014 Plan. The Company reserved 900,000 shares of common stock for issuance under the 2018 Plan in connection with the settlement of awards. As of June 30, 2026, 892,720 restricted stock units have been granted under the 2018 Plan of which 121,239 were unvested. The Company reserved 625,000 shares of common stock for issuance under the 2023 Plan in connection with the settlement of awards. As of June 30, 2026, 13,743 restricted stock shares and 317,948 restricted stock units have been granted under the 2023 Plan of which 6,023 shares and 266,305 units were unvested, respectively. The expense associated with all restricted stock grants (including restricted stock awards and restricted stock units) was $ 3.0 million and $ 5.7 million for the three and six months ended June 30, 2026, and $ 2.7 million and $ 4.9 million for the three and six months ended June 30, 2025, respectively. Unrecognized compensation expense for these awards as of June 30, 2026, was $ 20.3 million and is expected to be recognized over a weighted average period of 13 months. Note 11: COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance Sheet Risk - The Company has financial instruments with off-balance-sheet risk generated in the normal course of business to meet the financing needs of its clients. These financial instruments include commitments to extend credit, commitments related to standby letters of credit, commitments to originate loans, commitments to sell loans, and commitments to buy or sell securities. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved in on-balance sheet items. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument from commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. We apply the same credit policies to these commitments and conditional obligations as we do to our on-balance sheet financial instruments. 42 Table of Contents Outstanding commitments consisted of the following at the dates indicated (in thousands): Contract or Notional Amount June 30, 2026 December 31, 2025 Commitments to extend credit $ 4,241,995 $ 3,978,474 Standby letters of credit and financial guarantees 29,028 26,406 Risk participation agreements 40,098 41,191 Commitments to originate loans held for sale 46,140 39,895 Commitments to sell loans secured by one- to four-family residential properties 29,495 43,264 Commitments to sell securities related to mortgage banking activities 34,500 27,250 In addition to the commitments disclosed in the table above, the Company is also committed to funding the unfunded portion of its tax credit investments, as well as the remaining unfunded portion of its investments in limited partnerships. As of June 30, 2026 and December 31, 2025, the remaining outstanding commitments related to the unfunded tax credit investments and limited partnership investments were as follows (in thousands): Unfunded commitment balance for: June 30, 2026 December 31, 2025 Tax credit investments $ 96,719 $ 118,471 Limited partnerships investments $ 10,648 $ 11,398 Commitments to extend credit are agreements to lend to a client, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Many of the commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. Each client’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on Management’s credit evaluation of the client. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. The Company’s allowance for credit losses - unfunded loan commitments at June 30, 2026 and December 31, 2025 was $ 15.1 million and $ 15.0 million, respectively. Standby letters of credit are conditional commitments issued to guarantee a client’s performance or payment to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. Under a risk participation agreement, the Bank guarantees the financial performance of a borrower on the participated portion of an interest rate swap on a loan. Interest rates on one- to four-family residential loan applications are typically rate locked (committed) to clients during the application stage for periods ranging from 30 to 60 days, the most typical period being 45 days. Traditionally, these loan applications with rate lock commitments have the pricing for the sale of these loans locked with various qualified investors under a best-efforts delivery program at or near the time the interest rate is locked with the client. The Bank then attempts to deliver these loans before their rate locks expire. This arrangement generally requires delivery of the loans prior to the expiration of the rate lock. Delays in funding the loans may require a lock extension. The cost of a lock extension is sometimes covered by the client and other times by the Bank. These lock extension costs have not had a material impact to the Company’s operations. For mandatory delivery commitments the Company enters into forward commitments at specific prices and settlement dates to deliver either: (1) residential mortgage loans for purchase by secondary market investors (i.e., Freddie Mac or Fannie Mae), or (2) mortgage-backed securities to broker/dealers. The purpose of these forward commitments is to offset the movement in interest rates between the execution of its residential mortgage rate lock commitments with borrowers and the sale of those loans to the secondary market investor. There were no counterparty default losses on forward contracts during the three and six months ended June 30, 2026 or June 30, 2025. Market risk with respect to forward contracts arises principally from changes in the value of contractual positions due to changes in interest rates. The Company limits its exposure to market risk by monitoring differences between commitments to clients and forward contracts with market investors and securities broker/dealers. In the event the Company has forward delivery contract commitments in excess of available mortgage loans, the transaction is completed by either paying or receiving a fee to or from the investor or broker/dealer equal to the increase or decrease in the market value of the forward contract. Changes in the value of rate lock commitments are recorded as assets and liabilities. In the normal course of business, the Company and/or its subsidiaries have various legal proceedings and other contingent matters outstanding. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. These claims and counterclaims typically arise during the course of collection efforts on problem loans or with respect to action to enforce liens on properties in which the Bank holds a security interest, but also include other claims arising in the ordinary course of business, including employment-related matters. Based upon the information known to Management, there were no legal proceedings, pending or threatened, that Management believes would reasonably be expected to have a material adverse effect on the results of operations or consolidated financial position at June 30, 2026. In connection with certain asset sales, the Bank typically makes representations and warranties about the underlying assets conforming to specified guidelines. If the underlying assets do not conform to the specifications, the Bank may have an obligation to repurchase the assets or indemnify the purchaser against any loss. The Bank believes that the potential for material loss under these arrangements is remote. Accordingly, the fair value of such obligations is not material. 43 Table of Contents Note 12: DERIVATIVES AND HEDGING The Company is party to various derivative instruments that are used for asset and liability management and client financing needs. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company’s predominant derivative and hedging activities involve interest rate swaps related to certain term loans and forward sales contracts associated with mortgage banking activities. Generally, these instruments help the Company manage exposure to market risk and meet client financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors. As of June 30, 2026 and December 31, 2025, the notional values or contractual amounts and fair values of the Company’s derivatives were as follows (in thousands): Asset Derivatives Liability Derivatives June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Notional/ Contract Amount Fair Value Interest rate swaps $ 419,165 $ 18,996 $ 409,748 $ 19,185 $ 419,165 $ 19,007 $ 409,748 $ 19,207 Master netting agreements ( 10,465 ) ( 9,207 ) — — Net interest rate swaps 8,531 9,978 19,007 19,207 Risk participation agreements 467 — 583 — 39,632 2 40,607 5 Mortgage loan commitments 46,140 301 39,895 333 — — — — Forward sales contracts 11,011 — 28,405 — 42,963 180 33,793 151 Total $ 476,783 $ 8,832 $ 478,631 $ 10,311 $ 501,760 $ 19,189 $ 484,148 $ 19,363 The Company’s asset derivatives are included in other assets, while the liability derivatives are included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. Interest Rate Swaps: The Bank offers an interest rate swap program for commercial loan clients under which a client with a variable-rate loan enters into an interest rate swap to receive a variable-rate payment in exchange for paying a fixed-rate payment. To offset its risk exposure, the Bank enters into an offsetting interest rate swap with a dealer counterparty for the same notional amount and term, under which the dealer counterparty receives a fixed-rate payment in exchange for a variable-rate payment. These swaps do not qualify as designated hedges; therefore, each swap is accounted for as a freestanding derivative. Risk Participation Agreements: In conjunction with the purchase or sale of participating interests in loans, the Company also participates in related swaps through risk participation agreements. The existing credit derivatives resulting from these participations are not designated as hedges as they are not used to manage interest rate risk in the Company’s assets or liabilities and are not speculative. Mortgage Loan Commitments: The Company sells originated one- to four-family residential loans into the secondary mortgage loan markets. During the period of loan origination and prior to the sale of the loans in the secondary market, the Company has exposure to movements in interest rates associated with written interest rate lock commitments with potential borrowers to originate one- to four-family residential loans that are intended to be sold and for closed one- to four-family residential loans held for sale for which fair value accounting has been elected, that are awaiting sale and delivery into the secondary market. The Company economically hedges the risk of changing interest rates associated with these one- to four-family residential loan commitments by entering into forward sales contracts to sell these loans or mortgage-backed securities to broker/dealers at specific prices and dates. Gains (losses) recognized in income within mortgage banking operations on non-designated hedging instruments for the three and six months ended June 30, 2026 and 2025, were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Mortgage loan commitments $ 356 $ 324 $ 66 $ 605 Forward sales contracts ( 401 ) ( 352 ) 167 ( 809 ) $ ( 45 ) $ ( 28 ) $ 233 $ ( 204 ) 44 Table of Contents The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and Management does not expect the counterparties to fail their obligations. In connection with the interest rate swaps between the Bank and the dealer counterparties, the agreements contain a provision where if the Bank fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations. Similarly, the Bank could be required to settle its obligations under certain of its agreements if specific regulatory events occur, such as a publicly issued prompt corrective action directive, cease and desist order, or a capital maintenance agreement that required the Bank to maintain a specific capital level. If the Bank had breached any of these provisions at June 30, 2026 or December 31, 2025, it could have been required to settle its obligations under the agreements at the termination value. As of June 30, 2026 and December 31, 2025, the Company had no obligations to dealer counterparties related to these agreements. The Company generally posts collateral against derivative liabilities in the form of cash, government agency-issued bonds, mortgage-backed securities, or commercial mortgage-backed securities. Collateral posted against derivative liabilities was $ 20.1 million and $ 17.4 million as of June 30, 2026 and December 31, 2025, respectively. The collateral posted included restricted cash of $ 19.1 million and $ 16.4 million as of June 30, 2026 and December 31, 2025, respectively. Derivative assets and liabilities are recorded at fair value on the balance sheet. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis and to offset net derivative positions with related collateral where applicable. In addition, some interest rate swap derivatives between the Company and the dealer counterparties are cleared through central clearing houses. These clearing houses characterize the variation margin payments as settlements of the derivative’s market exposure and not as collateral. The variation margin is treated as an adjustment to our cash collateral, as well as a corresponding adjustment to our derivative asset or liability. The variation margin adjustment was a positive adjustment of $ 10.5 million and $ 9.2 million as of June 30, 2026 and December 31, 2025, respectively. 45 Table of Contents The following tables present additional information related to the Company’s derivative contracts, by type of financial instrument, as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 18,996 $ ( 10,465 ) $ 8,531 $ — $ — $ 8,531 $ 18,996 $ ( 10,465 ) $ 8,531 $ — $ — $ 8,531 Derivative liabilities Interest rate swaps $ 19,007 $ — $ 19,007 $ — $ ( 18,470 ) $ 537 $ 19,007 $ — $ 19,007 $ — $ ( 18,470 ) $ 537 December 31, 2025 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 19,185 $ ( 9,207 ) $ 9,978 $ — $ — $ 9,978 $ 19,185 $ ( 9,207 ) $ 9,978 $ — $ — $ 9,978 Derivative liabilities Interest rate swaps $ 19,207 $ — $ 19,207 $ — $ ( 15,767 ) $ 3,440 $ 19,207 $ — $ 19,207 $ — $ ( 15,767 ) $ 3,440 46 Table of Contents Note 13: SEGMENT DISCLOSURES The Company is managed by legal entity, rather than by lines of business, and its activities are considered a single operating segment for financial reporting purposes. The Bank is engaged in the single line of business of community banking, which involves gathering deposits and originating loans in its primary market areas. The Bank manages its operations, allocates resources, and monitors and reports its financials as a single operating segment. Banner’s Chief Executive Officer is considered the Chief Operating Decision Maker (CODM). The CODM assesses performance based on net income that is reported on our Consolidated Statements of Operations. The measure of segment assets is reported on our Consolidated Statement of Financial Condition as total assets. The CODM uses consolidated net income as the primary measure to evaluate resource allocations. The CODM is regularly provided with our consolidated financial statements, specifically the statement of operations and the statement of cash flows, as well as expense and budget data. 47 Table of Contents 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). 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 — — 919 — 919 Adjusted revenue (non-GAAP) $ 172,111 $ 168,910 $ 162,984 $ 341,021 $ 322,860 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 — — 238 — 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’s 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 % 49 Table of Contents Quarters Ended Six Months Ended June 30, Jun 30, 2026 Mar 31, 2026 Jun 30, 2025 2026 2025 ADJUSTED EFFICIENCY RATIO Non-interest expense (GAAP) $ 107,990 $ 102,608 $ 101,348 $ 210,598 $ 202,607 Exclude: CDI amortization (256) (256) (455) (512) (911) State and municipal tax expense (1,773) (1,820) (1,416) (3,593) (2,870) REO operations (165) (109) (392) (274) (331) Merger and acquisition-related expenses (238) — — (238) — Building and lease exit costs (47) (9) (834) (56) (834) Adjusted non-interest expense (non-GAAP) $ 105,511 $ 100,414 $ 98,251 $ 205,925 $ 197,661 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 — — 919 — 919 Adjusted revenue (non-GAAP) $ 172,111 $ 168,910 $ 162,984 $ 341,021 $ 322,860 Efficiency ratio (GAAP) 62.80 % 60.60 % 62.50 % 61.71 % 62.85 % Adjusted efficiency ratio (non-GAAP) (4) 61.30 % 59.45 % 60.28 % 60.38 % 61.22 % (1) Adjusted earnings (non-GAAP) divided by average assets. (2) Adjusted earnings (non-GAAP) divided by average equity. (3) Tangible net income (non-GAAP) divided by average tangible common equity (non-GAAP). (4) Adjusted non-interest expense (non-GAAP) divided by adjusted revenue (non-GAAP). The ratio of tangible common shareholders’ equity to tangible assets is also a non-GAAP financial measure. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholders’ equity. We calculate tangible assets by excluding the balance of goodwill and other intangible assets from total assets. We believe that this is consistent with the treatment by our bank regulatory agencies, which exclude goodwill and other intangible assets from the calculation of risk-based capital ratios. Management believes that this non-GAAP financial measure provides information to investors that is useful in understanding the basis of our capital position (dollars in thousands except share and per share data). TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025 Shareholders’ equity (GAAP) $ 1,999,263 $ 1,966,634 $ 1,946,297 $ 1,865,664 Exclude goodwill and other intangible assets, net 374,100 374,356 374,612 375,268 Tangible common shareholders’ equity (non-GAAP) $ 1,625,163 $ 1,592,278 $ 1,571,685 $ 1,490,396 Total assets (GAAP) $ 16,593,547 $ 16,344,272 $ 16,354,488 $ 16,437,169 Exclude goodwill and other intangible assets, net 374,100 374,356 374,612 375,268 Total tangible assets (non-GAAP) $ 16,219,447 $ 15,969,916 $ 15,979,876 $ 16,061,901 Common shareholders’ equity to total assets (GAAP) 12.05 % 12.03 % 11.90 % 11.35 % Tangible common shareholders’ equity to tangible assets (non-GAAP) 10.02 % 9.97 % 9.84 % 9.28 % TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025 Shareholders’ equity (GAAP) $ 1,999,263 $ 1,966,634 $ 1,946,297 $ 1,865,664 Tangible common shareholders’ equity (non-GAAP) $ 1,625,163 $ 1,592,278 $ 1,571,685 $ 1,490,396 Common shares outstanding at end of period 33,984,909 33,875,098 34,097,856 34,583,994 Common shareholders’ equity (book value) per share (GAAP) $ 58.83 $ 58.06 $ 57.08 $ 53.95 Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) $ 47.82 $ 47.00 $ 46.09 $ 43.09 50 Table of Contents Summary of Critical Accounting Estimates Our critical accounting estimates are described in detail in the Critical Accounting Estimates section of our 2025 Form 10-K. The condensed consolidated financial statements are prepared in conformity with GAAP and follow general practices within the financial services industry in which the Company operates. This preparation requires Management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements. As this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. Certain estimates inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes that the allowance for credit losses and fair value measurements require significant judgments and assumptions which are susceptible to significant changes based on the current environment. There have been no significant changes in our application of critical accounting estimates since December 31, 2025. Comparison of Financial Condition at June 30, 2026 and December 31, 2025 General : Total assets increased $239.1 million to $16.59 billion at June 30, 2026, from $16.35 billion at December 31, 2025, primarily due to growth in loans receivable, partially offset by a decrease in securities. Loans and lending: Loans are our most significant and generally highest yielding earning assets. We attempt to maintain a total loans to total deposits ratio at a level designed to enhance our revenues, while adhering to sound underwriting practices and appropriate diversification guidelines in order to maintain a moderate risk profile. Our loan to deposit ratio at June 30, 2026 was 87%. We offer a wide range of loan products to meet the demands of our clients. Our lending activities are primarily directed toward the origination of real estate and commercial loans. Total loans receivable (gross loans less deferred fees and discounts and excluding loans held for sale) increased $272.7 million at June 30, 2026, compared to December 31, 2025. The increase primarily reflected growth in commercial business loans, commercial real estate loans, and consumer loans, partially offset by declines in construction, land and land development loans, agricultural business loans, and one- to four-family residential loans. The following table sets forth the composition of the Company’s loans receivable by type of loan as of the dates indicated (dollars in thousands): Percentage Change Jun 30, 2026 Dec 31, 2025 Jun 30, 2025 Year End Prior Year Qtr. End Commercial real estate: Owner-occupied $ 1,229,993 $ 1,138,298 $ 1,125,249 8 % 9 % Investment properties 1,744,127 1,701,413 1,625,001 3 7 Small balance CRE 1,166,516 1,212,357 1,223,477 (4) (5) Total Commercial real estate 4,140,636 4,052,068 3,973,727 2 4 Multifamily real estate 855,862 850,789 860,700 1 (1) Construction, land and land development: Commercial construction 181,843 156,021 159,222 17 14 Multifamily construction 503,058 514,330 568,058 (2) (11) One- to four-family construction 631,183 607,447 551,806 4 14 Land and land development 378,172 433,678 417,474 (13) (9) Total Construction, land and land development 1,694,256 1,711,476 1,696,560 (1) — Commercial business: Commercial business 1,286,818 1,225,108 1,318,483 5 (2) Small business scored 1,295,861 1,187,360 1,152,531 9 12 Total Commercial business 2,582,679 2,412,468 2,471,014 7 5 Agricultural business, including secured by farmland 337,487 353,152 345,742 (4) (2) One- to four-family residential 1,556,493 1,573,191 1,610,133 (1) (3) Consumer: Consumer—home equity revolving lines of credit 744,546 679,489 639,757 10 16 Consumer—other 82,451 89,054 92,740 (7) (11) Total Consumer 826,997 768,543 732,497 8 13 Total loans receivable $ 11,994,410 $ 11,721,687 $ 11,690,373 2 % 3 % 51 Table of Contents Commercial real estate loans totaled $4.14 billion, or 34% of our loan portfolio, and multifamily real estate loans totaled $855.9 million, or 7% of our loan portfolio, at June 30, 2026. Commercial real estate loans increased by $88.6 million during the first six months of 2026, primarily due to new production. Multifamily real estate loans increased by $5.1 million, primarily due transfers to the permanent loan portfolio upon completion of the construction phase, partially offset by loan payoffs. Our construction, land and land development loans totaled $1.69 billion, or 14% of our loan portfolio, at June 30, 2026, compared to $1.71 billion at December 31, 2025. Multifamily construction loans decreased $11.3 million, or 2%, to $503.1 million at June 30, 2026, compared to December 31, 2025. Multifamily construction represented 4% of our total loan portfolio at June 30, 2026. Multifamily construction loans were comprised primarily of affordable housing projects and, to a lesser extent, market rate multifamily projects across our footprint. Commercial construction loans increased $25.8 million, or 17%, to $181.8 million at June 30, 2026, compared to $156.0 million at December 31, 2025, primarily due to new production and advances, partially offset by transfers to the permanent loan portfolio upon completion of the construction phase and loan payoffs. Land and land development loans decreased $55.5 million, or 13%, to $378.2 million at June 30, 2026, compared to December 31, 2025, primarily due to payoffs and paydowns, partially offset by new loan originations. Construction loans across our footprint were concentrated primarily in Washington, California and Oregon at June 30, 2026, with the majority of multifamily construction projects expected to convert to permanent loans within the next 12 to 24 months as construction phases are completed. Our commercial business lending is directed toward meeting the credit and related deposit needs of various small- to medium-sized business and agribusiness borrowers operating in our primary market areas. Our commercial business loans were $2.58 billion at June 30, 2026 and $2.41 billion at December 31, 2025. Commercial business loans represented 22% of our loan portfolio at June 30, 2026. Our agricultural business loans were $337.5 million at June 30, 2026 and $353.2 million at December 31, 2025. Agricultural business loans represented 3% of our loan portfolio at June 30, 2026. Our commercial business lending also includes participation in certain syndicated loans, including shared national credits, which totaled $222.2 million, or 2% of our loan portfolio, at June 30, 2026, compared to $195.6 million, or 2% of our loan portfolio, at December 31, 2025. We are active originators of one- to four-family residential loans in most communities where we have established offices in Washington, Oregon, California, Idaho and Utah. Most of the one- to four-family residential loans we originate in normal market conditions are sold in secondary markets with net gains on sales and loan servicing fees reflected in our revenues from mortgage banking operations. At June 30, 2026, one- to four-family residential loans retained in our portfolio decreased $16.7 million, to $1.56 billion, compared to $1.57 billion at December 31, 2025. The decrease was primarily the result of one- to four-family residential loan payoffs exceeding new loan originations and one- to four-family construction loans converting to permanent one- to four-family residential loans upon completion of construction. One- to four-family residential loans represented 13% of our loan portfolio at June 30, 2026. Our consumer loan activity is primarily directed at meeting demand from our existing deposit clients. At June 30, 2026, consumer loans, including home equity revolving lines of credit, increased $58.5 million to $827.0 million, compared to $768.5 million at December 31, 2025. The increase was primarily due to growth in home equity revolving lines of credit. The following table shows the commitment amount for loan origination activity (excluding loans held for sale) for the periods indicated (in thousands): Three Months Ended Six Months Ended Jun 30, 2026 Mar 31, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Commercial real estate $ 163,031 $ 220,193 $ 216,189 $ 383,224 $ 253,230 Multifamily real estate 215 3,869 13,065 4,084 22,620 Construction, land and land development 561,290 323,941 411,210 885,231 698,775 Commercial business 312,028 168,324 203,656 480,352 307,395 Agricultural business 9,032 22,562 14,414 31,594 27,179 One-to four- family residential 37,998 13,416 5,491 51,414 10,630 Consumer 172,152 110,913 102,600 283,065 182,630 Total commitment amount for loan originations (excluding loans held for sale) $ 1,255,746 $ 863,218 $ 966,625 $ 2,118,964 $ 1,502,459 Loans held for sale decreased to $27.2 million at June 30, 2026, compared to $42.9 million at December 31, 2025. The decrease was primarily the result of increased sales of one- to four- family residential mortgage loans held for sale, with loan sales outpacing originations during the period. Originations of loans held for sale increased to $198.4 million for the six months ended June 30, 2026, compared to $171.0 million for the same period last year. The volume of one- to four-family residential mortgage loans sold was $267.1 million during the six months ended June 30, 2026, compared to $212.7 million in the same period a year ago. 52 Table of Contents The following table presents loans by geographic concentration at the dates indicated (dollars in thousands): Jun 30, 2026 Dec 31, 2025 Jun 30, 2025 Percentage Change Amount Percentage Amount Amount Year End Prior Year Qtr. End Washington $ 5,359,130 45 % $ 5,371,200 $ 5,438,285 — % (1) % California 3,275,124 27 3,105,405 3,010,678 5 9 Oregon 2,210,617 18 2,159,404 2,141,185 2 3 Idaho 732,830 6 667,343 671,217 10 9 Utah 78,216 1 82,594 70,474 (5) 11 Other 338,493 3 335,741 358,534 1 (6) Total loans receivable $ 11,994,410 100 % $ 11,721,687 $ 11,690,373 2 % 3 % Investment Securities: Total securities were $2.95 billion at June 30, 2026, decreased from $2.98 billion at December 31, 2025. Available-for-sale securities were flat at $2.02 billion at June 30, 2026, compared to December 31, 2025, while held-to-maturity securities decreased $31.9 million to $929.3 million, compared to $961.2 million at December 31, 2025, reflecting maturities and paydowns during the period. Purchases during the six months ended June 30, 2026, consisted of agency commercial mortgage‑backed securities, corporate securities and collateralized loan obligations. The average effective duration of the Company’s securities portfolio was 6.1 years at June 30, 2026, compared to 6.6 years at December 31, 2025. The fair value of securities designated as available-for-sale decreased $3.7 million for the six months ended June 30, 2026. This decrease, net of $900,000 in associated tax benefit, was recorded in other comprehensive income and reflected the impact of changes in market interest rates during the six months ended June 30, 2026. Deposits: Deposits, client retail repurchase agreements and loan repayments are the major sources of our funds for lending and other investment purposes. We compete with other financial institutions and financial intermediaries in attracting deposits and we generally attract deposits within our primary market areas. Much of the focus of our branch strategy and marketing efforts over the last several years have been directed toward attracting additional deposit client relationships and balances. This effort has been particularly directed towards emphasizing core deposit activity in non-interest-bearing and other transaction and savings accounts. The following table sets forth the Company’s deposits by type of deposit account as of the dates indicated (dollars in thousands): Percentage Change Jun 30, 2026 Dec 31, 2025 Jun 30, 2025 Year End Prior Year Qtr. End Non-interest-bearing $ 4,542,942 $ 4,489,839 $ 4,504,491 1 % 1 % Interest-bearing checking 2,623,149 2,609,080 2,534,900 1 3 Regular savings accounts 3,853,612 3,723,922 3,538,372 3 9 Money market accounts 1,296,869 1,388,001 1,471,756 (7) (12) Interest-bearing transaction & savings accounts 7,773,630 7,721,003 7,545,028 1 3 Total core deposits 12,316,572 12,210,842 12,049,519 1 2 Interest-bearing certificates 1,473,021 1,532,304 1,477,772 (4) — Total deposits $ 13,789,593 $ 13,743,146 $ 13,527,291 — % 2 % Total deposits increased $46.4 million at June 30, 2026, compared to December 31, 2025, with core deposits increasing $105.7 million, partially offset by certificates of deposit decreasing $59.3 million. The increase in core deposits primarily reflects increases in non-interest-bearing deposits and interest-bearing transaction and savings accounts. We had no brokered deposits at June 30, 2026, compared to $50.0 million at December 31, 2025. Core deposits represented 89% of total deposits at both June 30, 2026 and December 31, 2025. Competition for deposits in our market areas remains strong. The following table sets forth the number and average account balance of the Company’s deposit accounts as of the dates indicated (dollars in thousands): Jun 30, 2026 Dec 31, 2025 Jun 30, 2025 Number of deposit accounts 441,808 445,989 451,185 Average account balance per account $ 32 $ 31 $ 30 53 Table of Contents The following table presents deposits by geographic concentration at the dates indicated (dollars in thousands): Jun 30, 2026 Dec 31, 2025 Jun 30, 2025 Percentage Change Amount Percentage Amount Amount Year End Prior Year Qtr. End Washington $ 7,268,041 53 % $ 7,500,215 $ 7,334,391 (3) % (1) % Oregon 3,142,625 23 3,035,104 3,029,712 4 4 California 2,631,688 19 2,483,948 2,486,514 6 6 Idaho 747,239 5 723,879 676,674 3 10 Total deposits $ 13,789,593 100 % $ 13,743,146 $ 13,527,291 — % 2 % Borrowings: We had $320.0 million FHLB advances at June 30, 2026, compared to $150.0 million at December 31, 2025, as FHLB advances were temporarily used to fund the second quarter loan growth. Other borrowings, consisting of retail repurchase agreements primarily related to client cash management accounts, increased $6.8 million to $114.5 million at June 30, 2026, compared to $107.7 million at December 31, 2025. At June 30, 2026, the Company’s off-balance sheet liquidity included additional borrowing capacity of $3.45 billion at the FHLB, $1.64 billion at the Federal Reserve, and $125.0 million in federal funds lines of credit with other financial institutions. Junior subordinated debentures totaled $79.7 million at June 30, 2026, compared to $79.2 million at December 31, 2025. Shareholders’ Equity: Total shareholders’ equity increased $53.0 million to $2.00 billion, or 12.05% of total assets, at June 30, 2026, compared to $1.95 billion, or 11.90% of total assets, at December 31, 2025. The increase was primarily due to a $68.4 million increase in retained earnings resulting from $103.6 million in net income, partially offset by the accrual of $35.2 million in cash dividends and the repurchase of 250,000 shares of Banner common stock in the first quarter of 2026 at an average price of $64.56 per share. In addition, accumulated other comprehensive loss increased by $1.5 million, primarily due to an increase in unrealized losses on the available for sale securities portfolio. Tangible common shareholders’ equity, which excludes goodwill and other intangible assets and is a non-GAAP financial measure, increased $53.5 million to $1.63 billion, or 10.02% of tangible assets, at June 30, 2026, compared to $1.57 billion, or 9.84% of tangible assets at December 31, 2025. A reconciliation of this non-GAAP financial measure to its comparable GAAP financial measure is presented above under the heading “Reconciliation of Non-GAAP Financial Measures.” Comparison of Results of Operations for the Three Months Ended June 30, 2026 and March 31, 2026, and the Six Months Ended June 30, 2026 and 2025 For the quarter ended June 30, 2026, net income was $48.9 million, or $1.43 per diluted share, compared to $54.7 million, or $1.60 per diluted share, for the preceding quarter. For the six months ended June 30, 2026, our net income was $103.6 million, or $3.03 per diluted share, compared to $90.6 million, or $2.61 per diluted share for the same period a year earlier. The decrease in net income compared to the preceding quarter was primarily due to an increase in the provision for credit losses and higher non-interest expense, partially offset by an increase in net interest income. The increase in net income for the six months ended June 30, 2026, compared to the same period a year ago was primarily due to higher net interest income and a lower provision for credit losses, partially offset by higher non-interest expense. Net interest income was $153.7 million in the second quarter of 2026, compared to $150.2 million in the preceding quarter, and $303.9 million for the six months ended June 30, 2026, compared to $285.5 million for the comparable period a year ago. The increase in net interest income compared to the prior quarter primarily reflected one additional calendar day in the current quarter, net interest margin expansion and growth in average interest-earning assets, partially offset by higher funding costs associated with increased FHLB borrowings. The increase in net interest income for the six months ended June 30, 2026, compared to the same period a year ago primarily reflected lower funding costs and an increase in the average balance of interest-earning assets. We recorded a $3.8 million provision for credit losses for the quarter ended June 30, 2026, compared to a $796,000 recapture of provision for credit losses in the preceding quarter. The provision for credit losses recorded in the second quarter of 2026 primarily reflected loan growth, partially offset by improvements in credit quality and changes in portfolio mix. We recorded a $3.0 million provision for credit losses for the six months ended June 30, 2026 and a $7.9 million provision for credit losses for the same period a year ago. Total non-interest income decreased in the quarter ended June 30, 2026, compared to the preceding quarter and increased during the six months ended June 30, 2026, compared to the same period a year ago. The decrease in non-interest income from the previous quarter was driven primarily by an unfavorable shift in fair value adjustments on financial instruments. In addition, net losses on the sale of securities were recognized in the preceding quarter. The increase in non-interest income during the six months ended June 30, 2026, compared to the same period last year, primarily reflected higher deposit fees and other service charges and favorable fair value adjustments on financial instruments carried at fair value, partially offset by a net loss recognized on the sale of securities during the current period. 54 Table of Contents Total non-interest expense increased in the quarter ended June 30, 2026, compared to the preceding quarter and increased during the six months ended June 30, 2026, compared to the same period a year ago. The increase from the previous quarter reflected an increase in salary and employee benefits, primarily reflecting increased loan commissions and normal salary and wage increases, an increase in information and computer data services, primarily due to increased computer software expenses, an increase in professional and legal expenses, primarily reflecting increased legal fees, and an increase in advertising and marketing expense, primarily reflecting the timing of direct mail marketing, printed media, and radio and television expenses. These increases were partially offset by higher capitalized loan origination costs associated with increased loan origination activity, primarily in the construction, land and land development, and one- to four-family residential loan categories. The increase in non-interest expense during the six months ended June 30, 2026, compared to the same period last year primarily reflects increases in salary and employee benefits and information and computer data services, partially offset by an increase in capitalized loan origination costs. OPERATING DATA: Quarters Ended Six Months Ended (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Interest income $ 202,686 $ 197,818 $ 200,259 $ 400,504 $ 394,127 Interest expense 48,946 47,649 55,860 96,595 108,645 Net interest income 153,740 150,169 144,399 303,909 285,482 Provision (recapture) for credit losses 3,818 (796) 4,795 3,022 7,934 Net interest income after provision (recapture) for credit losses 149,922 150,965 139,604 300,887 277,548 Deposit fees and other service charges 11,728 11,391 10,835 23,119 21,604 Mortgage banking operations 2,792 3,212 3,226 6,004 6,329 Net 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 All other non-interest income 3,851 4,138 3,605 7,989 8,526 Total non-interest income 18,222 19,161 17,751 37,383 36,859 Salary and employee benefits 69,388 67,732 65,486 137,120 130,343 All other non-interest expenses 38,602 34,876 35,862 73,478 72,264 Total non-interest expense 107,990 102,608 101,348 210,598 202,607 Income before provision for income tax expense 60,154 67,518 56,007 127,672 111,800 Provision for income tax expense 11,268 12,802 10,511 24,070 21,169 Net income $ 48,886 $ 54,716 $ 45,496 $ 103,602 $ 90,631 PER COMMON SHARE DATA: Quarters Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net income: Basic $ 1.44 $ 1.61 $ 1.31 $ 3.04 $ 2.62 Diluted 1.43 1.60 1.31 3.03 2.61 KEY FINANCIAL RATIOS Quarters Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 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 (1) 9.98 % 11.23 % 10.20 % 10.60 % 10.16 % Return on average tangible common equity (1) 12.27 % 14.00 % 12.56 % 13.13 % 12.76 % Average equity/average assets 12.09 % 12.09 % 11.41 % 12.09 % 11.35 % Average interest-earning assets/average interest-bearing liabilities 159.69 % 159.49 % 158.78 % 159.59 % 159.72 % Average interest-earning assets/average funding liabilities 108.42 % 108.45 % 108.00 % 108.43 % 108.04 % Non-interest income/average assets 0.45 % 0.48 % 0.44 % 0.46 % 0.46 % Non-interest expense/average assets 2.65 % 2.56 % 2.52 % 2.60 % 2.55 % Efficiency ratio 62.80 % 60.60 % 62.50 % 61.71 % 62.85 % Adjusted efficiency ratio (1) 61.30 % 59.45 % 60.28 % 60.38 % 61.22 % (1) Represents non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measure” above. 55 Table of Contents Net Interest Income. Net interest income increased $3.6 million during the quarter ended June 30, 2026, compared to the preceding quarter, due to an increase in interest income, primarily attributable to one additional calendar day in the current quarter, net interest margin expansion and growth in average interest-earning assets, partially offset by higher interest expense associated with increased FHLB borrowings. Net interest margin on a tax equivalent basis was 4.13% for the second quarter of 2026, compared to 4.11% for the preceding quarter. The net interest margin for the current quarter benefited from loan growth, a slight increase in loan yields, and lower deposit costs, partially offset by the increased use of FHLB advances. Net interest income increased by $18.4 million, or 6% for the six months ended June 30, 2026, compared to the same period one year earlier. The increase was primarily the result of a $6.4 million increase in interest income, primarily reflecting an increase in the average balance of loans, as well as a $12.1 million decrease in interest expense reflecting an 18 basis-point reduction in the average cost of funding liabilities to 1.39% from 1.57%. The net interest margin on a tax equivalent basis increased to 4.12% for the six months ended June 30, 2026, compared to 3.92% for the same period in the prior year. Interest Income. Interest income for the quarter ended June 30, 2026 was $202.7 million, compared to $197.8 million for the preceding quarter. The increase for the current quarter, compared to the preceding quarter reflects growth in average loan balances and a slight increase in average loan yields. The total average loan yield increased two basis points to 6.09% for the quarter ended June 30, 2026, from 6.07% in the preceding quarter. The increase in average loan balances for the current quarter, compared to the preceding quarter, primarily reflected growth in real estate secured loans and commercial and agricultural business loans. The total investment securities average balance decreased for the quarter ended June 30, 2026, compared to the preceding quarter, reflecting paydowns and maturities that were not fully replaced by new purchases during the period. The average yield on the combined portfolio increased to 3.03% for the quarter ended June 30, 2026, from 3.01% for the preceding quarter. Interest income on interest-bearing deposits with banks decreased for the current quarter, compared to the preceding quarter, reflecting decreases in both the average balance and yield of interest-bearing deposits. The average yield on interest-bearing deposits with banks decreased to 3.16%, compared to 3.34% in the prior quarter. Interest income for the six months ended June 30, 2026 was $400.5 million, compared to $394.1 million for the same period in the prior year, an increase of $6.4 million, primarily reflecting growth in average loan balances. Interest Expense. Interest expense increased for the quarter ended June 30, 2026, compared to the preceding quarter. Average funding liabilities increased by $122.0 million, primarily due to a $141.1 million increase in the average balance of FHLB advances, partially offset by a $23.6 million decrease in average deposit balances. The average cost of funding liabilities increased one basis point, to 1.39% for the quarter ended June 30, 2026. Interest expense for the six months ended June 30, 2026 was $96.6 million, compared to $108.6 million for the same period in the prior year. The decrease primarily resulted from an 18 basis-point decrease in the average cost of funds to 1.39% from 1.57%. Deposit interest expense for the quarter ended June 30, 2026 decreased slightly to $45.6 million, compared to $45.7 million for the preceding quarter. The average rate paid on total deposits, including non-interest-bearing deposits, was 1.33% for the quarter ended June 30, 2026, compared to 1.35% for the preceding quarter. The average rate paid on interest-bearing deposits decreased to 1.98% for the quarter ended June 30, 2026, compared to 1.99% in the preceding quarter. The decrease in the average rate paid on interest-bearing deposits, compared to the preceding quarter is attributable to lower rates paid on certificates of deposit and money market accounts. The decrease in the average rate paid on interest-bearing deposits compared to the preceding quarter was also impacted by shifts in the deposit mix, primarily reflecting continued migration from higher-rate certificates of deposit into lower-cost deposit accounts. Total average deposit balances, including non-interest-bearing deposits, decreased to $13.74 billion for the quarter ended June 30, 2026, compared to $13.76 billion for the preceding quarter. Deposit interest expense for the six months ended June 30, 2026 decreased $6.8 million to $91.2 million, compared to $98.1 million for the same period in the prior year. Average deposit balances increased to $13.75 billion for the six months ended June 30, 2026, from $13.43 billion for the same period a year earlier, while the average rate paid on deposits decreased to 1.34% for the six months ended June 30, 2026 from 1.47% for the same period in the prior year. The average cost of interest-bearing deposits decreased by 22 basis points to 1.99% for the six months ended June 30, 2026, compared to 2.21% in the same period a year earlier. The decrease in the average cost of interest-bearing deposits primarily reflected lower rates paid across all categories of interest-bearing deposits, as well as a reduction in the total average balance of higher- rate certificates of deposit. Interest expense on total borrowings for the quarter ended June 30, 2026 increased to $3.4 million from $2.0 million for the preceding quarter, due to an increase in the average balance on total borrowings, primarily reflecting a $141.1 million increase in the average balance of FHLB advances. Average total borrowings were $350.5 million for the quarter ended June 30, 2026, compared to $204.8 million for the preceding quarter. The average rate paid on total borrowings for the quarter ended June 30, 2026, decreased to 3.88%, from 3.90% for the preceding quarter. 56 Table of Contents Interest expense on total borrowings for the six months ended June 30, 2026 decreased to $5.4 million from $10.6 million for the same period a year earlier due to a decrease in both the average balance of and rate paid on total borrowings, reflecting the pay-off of Banner’s subordinated debt in June 2025. Average total borrowings were $278.1 million for the six months ended June 30, 2026, compared to $484.3 million for the same period a year earlier. The decrease was primarily due to a $111.6 million decrease in the average balance of FHLB advances and an $80.1 million decrease in the average balance of Junior subordinated debentures and subordinated notes, due to the pay-off of higher-rate subordinated debt during 2025. The average rate paid on total borrowings for the six months ended June 30, 2026 decreased to 3.89% from 4.41% for the same period a year earlier. Analysis of Net Interest Spread . The following table presents for the periods indicated our condensed average balance sheet information, together with interest income and yields earned on average interest-earning assets and interest expense and rates paid on average interest-bearing liabilities with additional comparative data on our operating performance (dollars in thousands). Average balances are computed using daily average balances. ANALYSIS OF NET INTEREST SPREAD Quarters Ended (rates / ratios annualized) Jun 30, 2026 Mar 31, 2026 (dollars in thousands) Average Balance Interest and Dividends Yield / Cost (3) Average Balance Interest and Dividends Yield / Cost (3) Interest-earning assets: Held for sale loans $ 33,242 $ 509 6.14 % $ 26,051 $ 381 5.93 % Real estate secured loans 9,875,493 148,303 6.02 % 9,754,431 144,369 6.00 % Commercial/agricultural loans 1,881,938 29,866 6.37 % 1,853,248 29,153 6.38 % Consumer and other loans 117,727 2,015 6.87 % 116,147 2,040 7.12 % Total loans (1) 11,908,400 180,693 6.09 % 11,749,877 175,943 6.07 % Mortgage-backed securities 2,275,561 14,269 2.52 % 2,326,123 14,509 2.53 % Other securities 938,205 9,915 4.24 % 878,650 9,040 4.17 % Interest-bearing deposits with banks 139,672 1,102 3.16 % 184,204 1,518 3.34 % FHLB stock 16,342 150 3.68 % 9,912 148 6.06 % Total investment securities 3,369,780 25,436 3.03 % 3,398,889 25,215 3.01 % Total interest-earning assets 15,278,180 206,129 5.41 % 15,148,766 201,158 5.39 % Non-interest-earning assets 1,082,054 1,106,533 Total assets $ 16,360,234 $ 16,255,299 Deposits: Interest-bearing checking accounts $ 2,606,252 9,433 1.45 % $ 2,631,917 9,273 1.43 % Savings accounts 3,830,346 19,009 1.99 % 3,792,427 18,388 1.97 % Money market accounts 1,314,496 5,790 1.77 % 1,387,870 6,151 1.80 % Certificates of deposit 1,465,885 11,322 3.10 % 1,481,349 11,866 3.25 % Total interest-bearing deposits 9,216,979 45,554 1.98 % 9,293,563 45,678 1.99 % Non-interest-bearing deposits 4,523,594 — — % 4,470,629 — — % Total deposits 13,740,573 45,554 1.33 % 13,764,192 45,678 1.35 % Other interest-bearing liabilities: FHLB advances 145,176 1,426 3.94 % 4,089 40 3.97 % Other borrowings 116,146 732 2.53 % 111,569 697 2.53 % Junior subordinated debentures and subordinated notes 89,178 1,234 5.55 % 89,178 1,234 5.61 % Total borrowings 350,500 3,392 3.88 % 204,836 1,971 3.90 % Total funding liabilities 14,091,073 48,946 1.39 % 13,969,028 47,649 1.38 % Other non-interest-bearing liabilities (2) 290,601 320,808 Total liabilities 14,381,674 14,289,836 Shareholders’ equity 1,978,560 1,965,463 Total liabilities and shareholders’ equity $ 16,360,234 $ 16,255,299 Net interest income/rate spread (tax equivalent) $ 157,183 4.02 % $ 153,509 4.01 % Net interest margin (tax equivalent) 4.13 % 4.11 % Reconciliation to reported net interest income: Adjustments for taxable equivalent basis (3,443) (3,340) Net interest income and margin, as reported $ 153,740 4.04 % $ 150,169 4.02 % (1) Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. (2) Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. (3) Tax-exempt income is calculated on a tax equivalent basis, which Banner believes provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice. The tax equivalent yield adjustment to interest earned on loans was $2.3 million and $2.2 million for the quarters ended June 30, 2026 and March 31, 2026, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million for both the quarters ended June 30, 2026 and March 31, 2026. 57 Table of Contents ANALYSIS OF NET INTEREST SPREAD (rates / ratios annualized) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 (dollars in thousands) Average Balance Interest and Dividends Yield / Cost (3) Average Balance Interest and Dividends Yield / Cost (3) Interest-earning assets: Held for sale loans $ 29,666 $ 890 6.05 % $ 26,217 $ 860 6.61 % Real estate secured loans 9,815,296 292,672 6.01 % 9,466,335 281,633 6.00 % Commercial/agricultural loans 1,867,672 59,019 6.37 % 1,915,699 61,948 6.52 % Consumer and other loans 116,942 4,055 6.99 % 121,316 4,179 6.95 % Total loans (1) 11,829,576 356,636 6.08 % 11,529,567 348,620 6.10 % Mortgage-backed securities 2,300,703 28,778 2.52 % 2,519,851 31,471 2.52 % Other securities 908,592 18,955 4.21 % 897,870 19,248 4.32 % Interest-bearing deposits with banks 161,815 2,620 3.27 % 70,675 1,061 3.03 % FHLB stock 13,145 298 4.57 % 17,969 371 4.16 % Total investment securities 3,384,255 50,651 3.02 % 3,506,365 52,151 3.00 % Total interest-earning assets 15,213,831 407,287 5.40 % 15,035,932 400,771 5.38 % Non-interest-earning assets 1,094,225 1,000,216 Total assets $ 16,308,056 $ 16,036,148 Deposits: Interest-bearing checking accounts $ 2,619,014 18,706 1.44 % $ 2,423,292 17,999 1.50 % Savings accounts 3,811,491 37,397 1.98 % 3,472,556 36,940 2.15 % Money market accounts 1,350,980 11,941 1.78 % 1,523,571 15,589 2.06 % Certificates of deposit 1,473,574 23,188 3.17 % 1,510,404 27,525 3.67 % Total interest-bearing deposits 9,255,059 91,232 1.99 % 8,929,823 98,053 2.21 % Non-interest-bearing deposits 4,497,258 — — % 4,503,461 — — % Total deposits 13,752,317 91,232 1.34 % 13,433,284 98,053 1.47 % Other interest-bearing liabilities: FHLB advances 75,022 1,466 3.94 % 186,597 4,230 4.57 % Other borrowings 113,870 1,429 2.53 % 128,459 1,369 2.15 % Junior subordinated debentures and subordinated notes 89,178 2,468 5.58 % 169,233 4,993 5.95 % Total borrowings 278,070 5,363 3.89 % 484,289 10,592 4.41 % Total funding liabilities 14,030,387 96,595 1.39 % 13,917,573 108,645 1.57 % Other non-interest-bearing liabilities (2) 305,621 299,082 Total liabilities 14,336,008 14,216,655 Shareholders’ equity 1,972,048 1,819,493 Total liabilities and shareholders’ equity $ 16,308,056 $ 16,036,148 Net interest income/rate spread (tax equivalent) $ 310,692 4.01 % $ 292,126 3.81 % Net interest margin (tax equivalent) 4.12 % 3.92 % Reconciliation to reported net interest income: Adjustments for taxable equivalent basis (6,783) (6,644) Net interest income and margin $ 303,909 4.03 % $ 285,482 3.83 % (1) Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. (2) Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. (3) Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $4.5 million and $4.6 million for the six months ended June 30, 2026 and 2025, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.2 million and $2.1 million for the six months ended June 30, 2026 and 2025, respectively. 58 Table of Contents Provision and Allowance for Credit Losses . Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. These factors include, among others, changes in the size and composition of the loan portfolio, differences in underwriting standards, delinquency rates, actual loss experience and current economic conditions. The following table sets forth an analysis of our allowance for credit losses - loans for the periods indicated (dollars in thousands): Quarters Ended Six Months Ended CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS Jun 30, 2026 Mar 31, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Balance, beginning of period $ 160,352 $ 160,276 $ 157,323 $ 160,276 $ 155,521 Provision for credit losses – loans 1,598 1,292 4,201 2,890 8,750 Recoveries of loans previously charged off: Commercial real estate 12 11 53 23 110 Construction and land 5 4 — 9 — One- to four-family residential 12 13 58 25 246 Commercial business 171 81 361 252 918 Agricultural business, including secured by farmland 213 4 1 217 11 Consumer 63 140 168 203 287 Total recoveries 476 253 641 729 1,572 Loans charged off: One- to four-family residential — — — — (13) Commercial business (293) (863) (892) (1,156) (4,193) Agricultural business, including secured by farmland (4) — (362) (4) (362) Consumer (280) (606) (410) (886) (774) Total charge-offs (577) (1,469) (1,664) (2,046) (5,342) Net charge-offs (101) (1,216) (1,023) (1,317) (3,770) Balance, end of period $ 161,849 $ 160,352 $ 160,501 $ 161,849 $ 160,501 Net charge-offs/average loans receivable (0.001) % (0.010) % (0.009) % (0.011) % (0.033) % Allowance for credit losses - loans as a percentage of total loans 1.35 % 1.37 % 1.37 % 1.35 % 1.37 % The provision for credit losses - loans reflects the amount required to maintain the allowance for credit losses - loans at an appropriate level based upon Management’s evaluation of the adequacy of collective and individual loss reserves. During the quarter ended June 30, 2026, we recorded a provision for credit losses - loans of $1.6 million, compared to a provision for credit losses - loans of $1.3 million during the preceding quarter. The provision for credit losses - loans recorded in the second quarter of 2026 primarily reflected loan growth, partially offset by improvements in credit quality and changes in portfolio mix. Future provisions for credit losses will continue to be influenced by changes in the amount and composition of the loan portfolio, updates to the reasonable and supportable forecast of future economic conditions, revisions to qualitative factor assessments, and any necessary changes to the reversion period applied in estimating expected credit losses. The provision for credit losses - unfunded loan commitments reflects the amount required to maintain the allowance for credit losses - unfunded loan commitments at an appropriate level based upon Management’s evaluation of the adequacy of collective and individual loss reserves related to our unfunded loan commitments. The following table sets forth an analysis of our allowance for credit losses - unfunded loan commitments for the periods indicated (dollars in thousands): Quarters Ended Six Months Ended CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS Jun 30, 2026 Mar 31, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Balance, beginning of period $ 12,903 $ 14,985 $ 12,162 $ 14,985 $ 13,562 Provision (recapture) for credit losses - unfunded loan commitments 2,222 (2,082) 588 140 (812) Balance, end of period $ 15,125 $ 12,903 $ 12,750 $ 15,125 $ 12,750 The increase in the allowance for credit losses - unfunded loan commitments for the current quarter was primarily driven by growth in unused loan commitments, mainly within the construction portfolio. 59 Table of Contents Non-interest Income. The following table presents the key components of non-interest income for the periods indicated (dollars in thousands): Quarters Ended Six Months Ended Jun 30, 2026 Mar 31, 2026 Change Amount Change Percent Jun 30, 2026 Jun 30, 2025 Change Amount Change Percent Deposit fees and other service charges $ 11,728 $ 11,391 $ 337 3 % $ 23,119 $ 21,604 $ 1,515 7 % Mortgage banking operations 2,792 3,212 (420) (13) 6,004 6,329 (325) (5) Bank owned life insurance 2,471 2,312 159 7 4,783 4,959 (176) (4) Miscellaneous 1,380 1,826 (446) (24) 3,206 3,567 (361) (10) 18,371 18,741 (370) (2) 37,112 36,459 653 2 Net gain (loss) on sale of securities 8 (1,242) 1,250 (101) (1,234) (3) (1,231) nm Net change in valuation of financial instruments carried at fair value (157) 1,662 (1,819) (109) 1,505 403 1,102 273 Total non-interest income $ 18,222 $ 19,161 $ (939) (5) % $ 37,383 $ 36,859 $ 524 1 % nm = not meaningful Non-interest income decreased $939,000 to $18.2 million for the quarter ended June 30, 2026, compared to $19.2 million for the quarter ended March 31, 2026. The decrease primarily reflected a $1.8 million unfavorable shift in fair value adjustments on financial instruments carried at fair value, which shifted from a net gain of $1.7 million in the quarter ended March 31, 2026, to a net loss of $157,000 in the quarter ended June 30, 2026. In addition, the current quarter included a slight gain on the sale of securities, compared to net losses of $1.2 million in the preceding quarter, partially offsetting the unfavorable change in fair value adjustments. Excluding changes in fair value adjustments and gains and losses on the sale of securities, recurring non-interest income remained relatively stable compared to the preceding quarter. Non-interest income increased modestly for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in non-interest income for the six months ended June 30, 2026, compared to the same period a year earlier primarily reflected a $1.5 million increase in deposit fees and other service charges and a $1.1 million favorable shift in fair value adjustments on financial instruments carried at fair value, partially offset by a net loss of $1.2 million recognized on the sale of securities during the current period. Non-interest Expense. The following table represents key elements of non-interest expense for the periods indicated (dollars in thousands): Quarters Ended Six Months Ended Jun 30, 2026 Mar 31, 2026 Change Amount Change Percent Jun 30, 2026 Jun 30, 2025 Change Amount Change Percent Salary and employee benefits $ 69,388 $ 67,732 $ 1,656 2 % $ 137,120 $ 130,343 $ 6,777 5 % Less capitalized loan origination costs (5,283) (3,886) (1,397) 36 (9,169) (8,254) (915) 11 Occupancy and equipment 10,936 10,697 239 2 21,633 24,353 (2,720) (11) Information and computer data services 10,322 8,313 2,009 24 18,635 15,827 2,808 18 Payment and card processing services 6,218 6,041 177 3 12,259 11,649 610 5 Professional and legal expenses 2,719 1,613 1,106 69 4,332 4,701 (369) (8) Advertising and marketing 1,982 673 1,309 195 2,655 1,677 978 58 Deposit insurance 2,819 2,717 102 4 5,536 5,597 (61) (1) State and municipal business and use taxes 1,773 1,820 (47) (3) 3,593 2,870 723 25 Real estate operations, net 165 109 56 51 274 331 (57) (17) Amortization of core deposit intangibles 256 256 — — 512 911 (399) (44) Miscellaneous 6,695 6,523 172 3 13,218 12,602 616 5 Total non-interest expense $ 107,990 $ 102,608 $ 5,382 5 % $ 210,598 $ 202,607 $ 7,991 4 % The increase in non-interest expense from the previous quarter reflected a $1.7 million increase in salary and employee benefits, a $2.0 million increase in information and computer data services, a $1.1 million increase in professional and legal expenses, and a $1.3 million increase in advertising and marketing expense. In addition, the current quarter included $238,000 of merger related expenses. These increases were partially offset by a $1.4 million increase in capitalized loan origination costs, reflecting increased loan origination activity, primarily in the construction, land and land development, and one- to four-family residential loan categories. The increase in non-interest expense for the six months ended June 30, 2026, compared to the same period a year earlier, primarily reflected increases in salary and employee benefits, information and computer data services expense, and advertising and marketing expense, partially offset by a lower occupancy and equipment expense and higher capitalized loan origination costs. 60 Table of Contents Salary and employee benefits increased for the current quarter, compared to the quarter ended March 31, 2026, primarily from increased loan commissions and normal salary and wage increases that were effective during the current quarter. Salary and employee benefits increased for the six months ended June 30, 2026, compared to the same period last year, primarily due to normal annual salary and wage increases and increased medical premiums. Occupancy and equipment expenses decreased for the six months ended June 30, 2026, compared to the same period last year, primarily due to lower rent expense resulting from strategic space reductions, as well as lower software amortization. Information and computer data services increased for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026, and increased for the six months ended June 30, 2026, compared to the same period last year, primarily due to an increase in computer software-related expenses, including $924,000 of expense related to the discontinuation of the use of our previous commercial loan origination software. Professional and legal expense increased for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026. The increase compared to the preceding quarter primarily reflected increased legal fees. Advertising and marketing expenses increased for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026, and increased for the six months ended June 30, 2026, compared to the same period last year, primarily due to the timing of printed media, radio, television and direct mail marketing campaigns during the current quarter. Our efficiency ratio was 62.80% for the current quarter, compared to 60.60% in the quarter ended March 31, 2026. Our adjusted efficiency ratio, a non-GAAP financial measure, was 61.30% for the current quarter, compared to 59.45% in the quarter ended March 31, 2026. The increase in the efficiency ratio reflects an increase in non-interest expense, partially offset by an increase in total revenues. The adjusted efficiency ratio reflects similar trends on an adjusted basis, with further detail provided in the non-GAAP reconciliation. See “Reconciliation of Non-GAAP Financial Measure” above. Income Taxes. For the quarter ended June 30, 2026, we recognized $11.3 million in income tax expense for an effective tax rate of 18.7%, compared to income tax expense of $12.8 million and an effective tax rate of 19.0% for the quarter ended March 31, 2026. The effective tax rate for the current quarter reflects our blended statutory tax rate, which was reduced by the effects of tax-exempt income, certain tax credits, and tax benefits related to restricted stock vesting. Our statutory income tax rate was 24.0%, representing the 21.0% federal statutory income tax rate plus the apportioned effect of applicable state income taxes. For the six months ended June 30, 2026, we recognized $24.1 million in income tax expense for an effective tax rate of 18.9%. 61 Table of Contents Asset Quality Maintaining a moderate risk profile by employing appropriate underwriting standards, avoiding excessive asset concentrations and aggressively managing troubled assets has been and will continue to be a primary focus for us. We actively engage with our borrowers to resolve adversely classified loans and other problem assets. Non-Performing Assets: 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. Our allowance for credit losses - loans was $161.8 million, or 295% of non-performing loans, at June 30, 2026, compared to $160.3 million, or 351% of non-performing loans, at December 31, 2025. The following table sets forth information with respect to our non-performing assets at the dates indicated (dollars in thousands): June 30, 2026 December 31, 2025 June 30, 2025 Nonaccrual Loans: Secured by real estate: Commercial $ 2,132 $ 525 $ 10 Construction and land 12,648 5,175 4,369 One- to four-family 23,398 19,855 15,480 Commercial business 6,968 6,751 6,647 Agricultural business, including secured by farmland 2,967 4,609 8,690 Consumer 4,784 4,610 4,802 52,897 41,525 39,998 Loans more than 90 days delinquent, still on accrual: Secured by real estate: Commercial 234 — — Construction and land — 1,268 — One- to four-family 1,427 2,698 2,896 Consumer 265 148 80 1,926 4,114 2,976 Total non-performing loans 54,823 45,639 42,974 REO, net 5,720 5,578 6,801 Other repossessed assets held for sale — 18 — Total non-performing assets $ 60,543 $ 51,235 $ 49,775 Total non-performing assets to total assets 0.36 % 0.31 % 0.30 % Total nonaccrual loans to total loans receivable 0.44 % 0.35 % 0.34 % Loans 30-89 days past due and on accrual $ 17,686 $ 26,767 $ 10,786 For the six months ended June 30, 2026, interest income was reduced by $1.2 million as a result of nonaccrual loan activity, which included the reversal of $702,000 of accrued interest as of the date the loan was placed on nonaccrual. There was no interest income recognized on nonaccrual loans for the six months ended June 30, 2026. The following table presents the Company’s portfolio of loans by risk grade at the dates indicated (in thousands): June 30, 2026 December 31, 2025 June 30, 2025 Pass $ 11,754,475 $ 11,446,550 $ 11,432,456 Special Mention 21,509 82,060 68,372 Substandard 218,426 193,077 189,545 Total $ 11,994,410 $ 11,721,687 $ 11,690,373 The decrease in special mention loans during the six months ended June 30, 2026, was primarily due to risk rating upgrades to pass, loan payoffs and, to a lesser extent, downgrades to substandard. The increase in substandard loans during the six months ended June 30, 2026, was primarily due to loan risk rating downgrades, primarily in the commercial business loan segment. As of June 30, 2026, total substandard loans primarily consisted of loans within the commercial business and commercial real estate loan segments. 62 Table of Contents Liquidity and Capital Resources Our primary sources of funds are deposits, borrowings, proceeds from loan principal and interest payments and sales of loans, and the maturity of and interest payments on mortgage-backed and investment securities. While maturities and scheduled amortization of loans and securities are a predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by market interest rates, economic conditions, competition and our pricing strategies. Our primary investing activity is the origination of loans and, in certain periods, the purchase of securities or loans. During the six months ended June 30, 2026 and 2025, loan originations, including originations of loans held for sale, exceeded loan repayments by $529.2 million and $565.7 million, respectively. There were no loan purchases during the six months ended June 30, 2026, and $10.8 million of loan purchases during the six months ended June 30, 2025. During the six months ended June 30, 2026 and 2025, we received proceeds of $277.5 million and $235.9 million, respectively, from the sale of loans. Securities purchased during the six months ended June 30, 2026 and 2025 totaled $164.6 million and $18.9 million, respectively, and securities repayments, maturities and sales in those periods were $192.0 million and $126.0 million, respectively. Our primary financing activity is gathering deposits. Total deposits increased by $46.4 million during the six months ended June 30, 2026, primarily due to an increase in core deposits. Core deposits were $12.32 billion at June 30, 2026, compared to $12.21 billion at December 31, 2025. Certificates of deposit are generally more vulnerable to competition and more price sensitive than other retail deposits and our pricing of those deposits varies significantly based upon our liquidity management strategies at any point in time. At June 30, 2026, certificates of deposit totaled $1.47 billion, or 11% of our total deposits, including $1.43 billion which were scheduled to mature within one year. While no assurance can be given as to future periods, historically, we have been able to retain a significant amount of our certificates of deposit as they mature. We had $320.0 million of FHLB advances at June 30, 2026, compared to $150.0 million at December 31, 2025, as FHLB advances were temporarily used to fund the second quarter loan growth. Other borrowings increased to $114.5 million at June 30, 2026, from $107.7 million at December 31, 2025. We must maintain an adequate level of liquidity to ensure the availability of sufficient funds to accommodate deposit withdrawals, to support loan growth, to satisfy financial commitments, and to take advantage of investment opportunities. During the six months ended June 30, 2026, we used our sources of funds to support loan growth, investment activities and other liquidity needs. At June 30, 2026, we had outstanding loan commitments totaling $4.32 billion, relating to undisbursed loans in process and unused credit lines. While representing potential growth in the loan portfolio and lending activities, this level of commitments is proportionally consistent with our historical experience and does not represent a departure from normal operations. We generally maintain sufficient cash and readily marketable securities to meet short-term liquidity needs; however, our primary liquidity management practice is to supplement deposits through short-term borrowings, including FHLB advances and Federal Reserve Bank of San Francisco (FRBSF) borrowings. We maintain credit facilities with the FHLB, which provide for advances secured by eligible collateral and subject to applicable borrowing capacity limitations, including required ownership of FHLB stock. At June 30, 2026, based on pledged collateral, the Bank had approximately $3.45 billion of available borrowing capacity under these facilities, and $320.0 million of outstanding FHLB advances. The Bank is also approved for participation in the FRBSF Borrower-in-Custody program. As of June 30, 2026, the Bank had approximately $1.64 billion of available borrowing capacity under this program, subject to eligible collateral requirements, including the type and risk rating of pledged loans. No borrowings were outstanding under this facility at June 30, 2026 or December 31, 2025. In addition, the Bank maintains uncommitted federal funds lines of credit with other financial institutions totaling $125.0 million, subject to availability of federal funds balances and continued counterparty eligibility. These lines are intended to support short-term liquidity needs and may restrict consecutive-day usage. No amounts were outstanding under these arrangements at June 30, 2026 or December 31, 2025. Management believes the Bank maintains adequate liquidity resources and borrowing capacity to meet its current and foreseeable funding requirements. Banner is a separate legal entity from the Bank and, on a stand-alone level, must provide for its own liquidity, and pay its own operating expenses and cash dividends. At June 30, 2026, Banner (on an unconsolidated basis) had liquid assets of $96.3 million. Banner’s primary sources of funds consist of capital raised through dividends or capital distributions from the Bank, although there are regulatory restrictions on the ability of the Bank to pay dividends. We currently expect to continue our current practice of paying quarterly cash dividends on our common stock subject to our Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice. Our current quarterly common stock dividend rate is $0.52 per share. Our quarterly common stock dividend enables us to balance our multiple objectives of managing and investing in the Bank and returning a substantial portion of our cash to our shareholders. Assuming continued dividend payments going forward at the current rate of $0.52 per share, our average total dividends paid each quarter would be approximately $17.7 million based on the number of outstanding shares at June 30, 2026. As noted below, Banner Corporation and its subsidiary bank continued to maintain capital levels in excess of the requirements to be categorized as “Well-Capitalized” under applicable regulatory standards. During the six months ended June 30, 2026, total shareholders’ equity increased $53.0 million, to $2.00 billion or 12.05% of total assets. At June 30, 2026, tangible common shareholders’ equity, which excludes goodwill and other intangible assets, was $1.63 billion, or 10.02% of tangible assets. Tangible common shareholders’ equity represents a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measure” above. 63 Table of Contents Capital Requirements Banner is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. The Bank, as a state-chartered, federally insured commercial bank, is subject to the capital requirements established by the FDIC. The capital adequacy requirements are quantitative measures established by regulation that require Banner and the Bank to maintain minimum amounts and ratios of capital. The Federal Reserve requires Banner to maintain capital adequacy that generally parallels the FDIC requirements. The FDIC requires the Bank to maintain minimum capital ratios of total capital, tier 1 capital, and common equity tier 1 capital to risk-weighted assets as well as tier 1 leverage capital to average assets. In addition to the minimum capital ratios, the Bank must maintain a capital conservation buffer consisting of additional common equity tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. At June 30, 2026, Banner and the Bank each exceeded all regulatory capital requirements to be “well capitalized.” The actual regulatory capital ratios calculated for Banner Corporation and Banner Bank as of June 30, 2026, along with the minimum capital amounts and ratios, were as follows (dollars in thousands): Actual Minimum to be Categorized as “Adequately Capitalized” Minimum to be Categorized as “Well-Capitalized” Amount Ratio Amount Ratio Amount Amount Banner Corporation—consolidated Total capital to risk-weighted assets $ 2,092,299 14.68 % $ 1,140,235 8.00 % $ 1,425,294 10.00 % Tier 1 capital to risk-weighted assets 1,915,042 13.44 % 855,176 6.00 % 855,176 6.00 % Tier 1 leverage capital to average assets 1,915,042 11.79 % 649,595 4.00 % n/a n/a Common equity tier 1 capital 1,828,542 12.83 % 641,382 4.50 % n/a n/a Banner Bank Total capital to risk-weighted assets $ 1,987,693 13.95 % $ 1,139,703 8.00 % $ 1,424,629 10.00 % Tier 1 capital to risk-weighted assets 1,810,436 12.71 % 854,777 6.00 % 1,139,703 8.00 % Tier 1 leverage capital to average assets 1,810,436 11.15 % 649,364 4.00 % 811,705 5.00 % Common equity tier 1 capital 1,810,436 12.71 % 641,083 4.50 % 926,009 6.50 % ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk Market Risk and Asset/Liability Management Our financial condition and operations are influenced significantly by general economic conditions, including the absolute level of interest rates as well as changes in interest rates and the slope of the yield curve. Our profitability is dependent, to a large extent, on our net interest income, which is the difference between the interest received from our interest-earning assets and the interest expense incurred on our interest-bearing liabilities. Our activities, like all financial institutions, inherently involve the assumption of interest rate risk. Interest rate risk is the risk that changes in market interest rates will have an adverse impact on the institution’s earnings and underlying economic value. Interest rate risk is determined by the maturity and repricing characteristics of an institution’s assets, liabilities and off-balance-sheet contracts. Interest rate risk is measured by the variability of financial performance and economic value resulting from changes in interest rates. Interest rate risk is the primary market risk affecting our financial performance. For the Company, the greatest source of interest rate risk results from the mismatch of maturities or repricing intervals for rate sensitive assets, liabilities and off-balance-sheet contracts. This mismatch, or gap, is generally characterized by a substantially shorter maturity structure for interest-bearing liabilities than interest-earning assets, although our floating-rate assets tend to be more immediately responsive to changes in market rates than most deposit liabilities. Additional interest rate risk results from mismatched repricing indices and formula (basis risk and yield curve risk), and product caps and floors and early repayment or withdrawal provisions (option risk), which may be contractual or market driven, that are generally more favorable to clients than to us. An exception to this generalization is the beneficial effect of interest rate floors on a portion of our performing floating-rate loans, which help us maintain higher loan yields in periods when market interest rates decline significantly. However, in a declining interest rate environment, as loans with floors are repaid they generally are replaced with new loans which have lower interest rate floors. As of June 30, 2026, our loans with interest rate floors totaled $5.96 billion and had a weighted average floor rate of 4.95%, compared to a current average note rate of 6.31%. Our loans with interest rates at their floors at June 30, 2026, totaled $1.26 billion and had a weighted average note rate of 5.11%. The Company actively manages its exposure to interest rate risk through on-going adjustments to the mix of interest-earning assets and funding sources that affect the repricing speeds of loans, investments, interest-bearing deposits and borrowings. 64 Table of Contents The principal objectives of asset/liability management are to evaluate the interest rate risk exposure; to determine the appropriate level of risk given our operating environment, business plan strategies, performance objectives, capital and liquidity constraints, and asset and liability allocation alternatives; and to manage our interest rate risk consistent with regulatory guidelines and policies approved by the Board of Directors. Through such management, we seek to reduce the vulnerability of our earnings and capital position to changes in the level of interest rates. Our actions in this regard are taken under the guidance of the Asset/Liability Management Committee, which is comprised of members of our senior management. The Committee closely monitors our interest sensitivity exposure, asset and liability allocation decisions, liquidity and capital positions, and local and national economic conditions and attempts to structure the loan and investment portfolios and funding sources to maximize earnings within acceptable risk tolerances. Sensitivity Analysis Our primary monitoring tool for assessing interest rate risk is asset/liability simulation modeling, which is designed to capture the dynamics of balance sheet, interest rate and spread movements and to quantify variations in net interest income resulting from those movements under different rate environments. The sensitivity of net interest income to changes in the modeled interest rate environments provides a measurement of interest rate risk. We also utilize economic value analysis, which addresses changes in estimated net economic value of equity arising from changes in the level of interest rates. The net economic value of equity is estimated by separately valuing our assets and liabilities under varying interest rate environments. The extent to which assets gain or lose value in relation to the gains or losses of liability values under the various interest rate assumptions determines the sensitivity of net economic value to changes in interest rates and provides an additional measure of interest rate risk. We perform an interest rate sensitivity analysis that incorporates beginning-of-the-period rate, balance and maturity data, using various levels of aggregation of that data, as well as certain assumptions concerning the maturity, repricing, amortization and prepayment characteristics of loans and other interest-earning assets and the repricing and withdrawal of deposits and other interest-bearing liabilities into an asset/liability simulation model. The interest rate sensitivity analysis includes a rate ramp sensitivity scenario, which assumes a gradual change in market interest rates at all maturities during the first year, as well as a rate shock interest rate sensitivity scenario, which assumes an instantaneous and sustained uniform change in market interest rates at all maturities. We update and prepare simulation modeling at least quarterly for review by senior management and oversight by the Board of Directors. We believe the data and assumptions are realistic representations of our portfolio and possible outcomes under the various interest rate scenarios. Nonetheless, the interest rate sensitivity of our net interest income and net economic value of equity could vary substantially if different assumptions were used or if actual experience differs from the assumptions used. 65 Table of Contents The following tables set forth, as of June 30, 2026, the estimated changes in our net interest income over one-year and two-year time horizons for our rate ramp and rate shock interest rate sensitivity scenarios, and the estimated changes in economic value of equity for our rate shock interest rate sensitivity scenario based on the indicated interest rate environments (dollars in thousands): Interest Rate Risk Indicators - Rate Ramp June 30, 2026 Estimated Increase (Decrease) in Change (in Basis Points) in Interest Rates (1) Net Interest Income Next 12 Months Net Interest Income Next 24 Months +300 $ 3,119 0.5 % $ 22,147 1.7 % +200 6,208 1.0 32,586 2.5 +100 5,090 0.8 24,869 1.9 0 — — — — -100 (6,004) (0.9) (30,738) (2.3) -200 (10,860) (1.7) (58,114) (4.4) -300 (14,652) (2.3) (83,357) (6.3) (1) Assumes a gradual change in market interest rates at all maturities during the first year; however, no rates are allowed to go below zero. Interest Rate Risk Indicators - Rate Shock June 30, 2026 Estimated Increase (Decrease) in Change (in Basis Points) in Interest Rates (1) Net Interest Income Next 12 Months Net Interest Income Next 24 Months Economic Value of Equity +300 $ 2,585 0.4 % $ 42,177 3.2 % $ (474,277) (14.2) % +200 13,572 2.1 54,518 4.2 (270,525) (8.1) +100 12,386 1.9 39,903 3.0 (105,639) (3.2) 0 — — — — — — -100 (14,470) (2.3) (48,156) (3.7) 20,071 0.6 -200 (25,648) (4.0) (93,452) (7.1) (27,875) (0.8) -300 (35,677) (5.6) (137,109) (10.4) (140,809) (4.2) (1) Assumes an instantaneous and sustained uniform change in market interest rates at all maturities; however, no rates are allowed to go below zero. 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. In contrast, the estimated long-term economic value of the balance sheet was more sensitive to interest rate changes, declining under rising rate scenarios and changing less under falling rate scenarios. Overall, the results indicate that near-term earnings are expected to benefit from higher interest rates, while the long-term economic value of equity is more sensitive to market rate movements. Another monitoring tool for assessing interest rate risk is gap analysis. The matching of the repricing characteristics of assets and liabilities may be analyzed by examining the extent to which assets and liabilities are interest sensitive and by monitoring an institution’s interest sensitivity gap. An asset or liability is said to be interest sensitive within a specific time period if it will mature or reprice within that time period. The interest rate sensitivity gap is defined as the difference between the amount of interest-earning assets anticipated, based upon certain assumptions, to mature or reprice within a specific time period and the amount of interest-bearing liabilities anticipated to mature or reprice, based upon certain assumptions, within that same time period. A gap is considered positive when the amount of interest-sensitive assets exceeds the amount of interest-sensitive liabilities. A gap is considered negative when the amount of interest-sensitive liabilities exceeds the amount of interest-sensitive assets. Generally, during a period of rising rates, a negative gap would tend to adversely affect net interest income while a positive gap would tend to result in an increase in net interest income. During a period of falling interest rates, a negative gap would tend to result in an increase in net interest income while a positive gap would tend to adversely affect net interest income. Certain shortcomings are inherent in gap analysis. For example, although certain assets and liabilities may have similar maturities or periods of repricing, they may react in different degrees to changes in market rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market rates, while interest rates on other types may lag behind changes in market rates. Additionally, certain assets, such as adjustable-rate mortgage loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset. Further, in the event of a change in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the table. Finally, the ability of some borrowers to service their debt may decrease in the event of a severe change in market rates. 66 Table of Contents The following table presents our interest sensitivity gap between interest-earning assets and interest-bearing liabilities at June 30, 2026 (dollars in thousands), based on the amounts of interest-earning assets and interest-bearing liabilities which are anticipated by us, based upon certain assumptions, to reprice or mature in each of the future periods shown. At June 30, 2026, total interest-earning assets maturing or repricing within one year exceeded total interest-bearing liabilities maturing or repricing in the same time period by $3.22 billion, representing a one-year cumulative gap to total assets ratio of 19.38%. Both the interest rate risk indicators and interest sensitivity gaps as of June 30, 2026 were within our internal policy guidelines, and Management believes the current level of interest rate risk to be reasonable. Within 6 Months After 6 Months Within 1 Year After 1 Year Within 3 Years After 3 Years Within 5 Years After 5 Years Within 10 Years Over 10 Years Total Interest-earning assets: (1) Construction loans $ 1,282,687 $ 64,575 $ 85,898 $ 10,935 $ 151 $ — $ 1,444,246 Fixed-rate mortgage loans 243,831 227,435 757,950 542,402 689,026 400,613 2,861,257 Adjustable-rate mortgage loans 1,446,587 540,292 1,413,080 1,168,744 379,463 11,219 4,959,385 Fixed-rate mortgage-backed securities 85,240 88,512 349,478 401,636 658,633 652,113 2,235,612 Adjustable-rate mortgage-backed securities 227,854 51 5,210 3,870 — — 236,985 Fixed-rate commercial/agricultural loans 109,481 80,575 255,295 130,243 121,033 6,270 702,897 Adjustable-rate commercial/agricultural loans 1,013,843 22,585 105,511 37,800 1,288 — 1,181,027 Consumer and other loans 652,846 65,375 59,301 16,518 14,271 38,651 846,962 Investment securities and interest-earning deposits 273,733 10,335 37,815 165,321 120,575 385,893 993,672 Total rate sensitive assets 5,336,102 1,099,735 3,069,538 2,477,469 1,984,440 1,494,759 15,462,043 Interest-bearing liabilities: (2) Regular savings 466,520 177,021 610,948 483,290 824,633 1,291,199 3,853,611 Interest checking accounts 259,085 88,640 320,139 271,771 515,383 1,168,131 2,623,149 Money market deposit accounts 171,943 99,330 314,591 214,932 286,671 209,369 1,296,836 Certificates of deposit 993,928 439,381 35,596 3,741 408 — 1,473,054 FHLB advances 320,000 — — — — — 320,000 Junior subordinated debentures 89,178 — — — — — 89,178 Retail repurchase agreements 114,497 — — — — — 114,497 Total rate sensitive liabilities 2,415,151 804,372 1,281,274 973,734 1,627,095 2,668,699 9,770,325 Excess of interest-sensitive assets over interest-sensitive liabilities $ 2,920,951 $ 295,363 $ 1,788,264 $ 1,503,735 $ 357,345 $ (1,173,940) $ 5,691,718 Cumulative excess of interest-sensitive assets $ 2,920,951 $ 3,216,314 $ 5,004,578 $ 6,508,313 $ 6,865,658 $ 5,691,718 $ 5,691,718 Cumulative ratio of interest-earning assets to interest-bearing liabilities 220.94 % 199.90 % 211.19 % 218.88 % 196.68 % 158.26 % 158.26 % Interest sensitivity gap to total assets 17.60 1.78 10.78 9.06 2.15 (7.07) 34.30 Ratio of cumulative gap to total assets 17.60 19.38 30.16 39.22 41.38 34.30 34.30 (Footnotes on following page) 67 Table of Contents Footnotes for Table of Interest Sensitivity Gap (1) Adjustable-rate assets are included in the period in which interest rates are next scheduled to adjust rather than in the period in which they are due to mature, and fixed-rate assets are included in the period in which they are scheduled to be repaid based upon scheduled amortization, in each case adjusted to take into account estimated prepayments. Mortgage loans and other loans are not reduced for allowances for credit losses and non-performing loans. Mortgage loans, mortgage-backed securities, other loans and investment securities are not adjusted for deferred fees or unamortized acquisition premiums and discounts. (2) Adjustable-rate liabilities are included in the period in which interest rates are next scheduled to adjust rather than in the period they are due to mature. Although regular savings, demand, interest checking, and money market deposit accounts are subject to immediate withdrawal, based on historical experience Management considers a substantial amount of such accounts to be core deposits having significantly longer maturities. For the purpose of the gap analysis, these accounts have been assigned decay rates to reflect their longer effective maturities. If all of these accounts had been assumed to be short-term, the one-year cumulative gap of interest-sensitive assets would have been a negative $3.3 billion, or negative 19.86% of total assets, at June 30, 2026. ITEM 4 – Controls and Procedures Management of Banner Corporation is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as amended (Exchange Act). A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that its objectives are met. Also, because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Additionally, in designing disclosure controls and procedures, our Management necessarily applies judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. As a result of these inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Further, projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. (a) Evaluation of Disclosure Controls and Procedures: An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) was carried out under the supervision and with the participation of our Chief Executive Officer, Chief Financial Officer and other members of our senior management as of the end of the period covered by this report. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2026, our disclosure controls and procedures were effective in ensuring that the information required to be disclosed by us in the reports it files or submits under the Exchange Act is (i) accumulated and communicated to Management (including our Chief Executive Officer and Chief Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. (b) Changes in Internal Controls Over Financial Reporting: In the quarter ended June 30, 2026, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 68 Table of Contents PART II – OTHER INFORMATION ITEM 1 – Legal Proceedings In the normal course of business, we have various legal proceedings and other contingent matters pending. These proceedings and the associated legal claims are often contested, and the outcome of individual matters is not always predictable. Furthermore, in some matters, it may be difficult to assess potential exposure, particularly for matters that are in relatively early stages. These claims and counter claims typically arise during the course of collection efforts on problem loans or with respect to actions to enforce liens on properties in which we hold a security interest. We also are subject to claims related to other matters, including employment matters such as claims by our employees of discrimination, harassment, violations of wage and hour requirements, or violations of other federal, state, or local laws and claims of misconduct or negligence on the part of our employees. Some or all of these claims may lead to litigation, including class action litigation, and these matters may cause us to incur negative publicity with respect to alleged claims. Our insurance may not cover all claims that may be asserted against us, and any claims asserted against us, regardless of merit or eventual outcome, may harm our reputation. Should the ultimate judgments or settlements in any litigation exceed our insurance coverage, they could have a material adverse effect on our financial condition and results of operation for any period. The ultimate outcome of these legal proceedings could be more or less than what we have accrued. Based upon the information known to Management, we are not a party to any pending legal proceedings that we believe would reasonably be expected to have a material adverse effect on our financial condition, results of operations or cash flows. ITEM 1A – Risk Factors There have been no material changes in the risk factors previously disclosed in Part 1, Item 1A of our 2025 Form 10-K, other than as set forth below. On April 30, 2026, Banner announced an agreement to acquire Pacific Financial Corporation, the holding company of Bank of the Pacific. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals and approval by Pacific Financial shareholders. There can be no assurance that the transaction will be completed on the anticipated terms, within the expected timeframe, or at all. If the transaction is not completed, Banner may be subject to risks associated with the failure to complete the transaction, including potential adverse effects on its business, financial condition, results of operations or reputation. 69 Table of Contents ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds (a) Not applicable. (b) Not applicable. (c) The following table provides information about repurchases of common stock by the Company during the quarter ended June 30, 2026: Period Total Number of Common Shares Purchased (1) Average Price Paid per Common Share Total Number of Shares Purchased as Part of Publicly Announced Authorization Maximum Number of Remaining Shares that May be Purchased as Part of Publicly Announced Authorization April 1, 2026 - April 30, 2026 45,363 $ 61.21 — 979,224 May 1, 2026 - May 31, 2026 — — — 979,224 June 1, 2026 - June 30, 2026 — — — 979,224 Total for quarter 45,363 61.21 — (1) Includes 45,363 shares surrendered by employees to satisfy tax withholding obligations upon the vesting of restricted stock grants during the quarter ended June 30, 2026. On July 24, 2025, the Company announced that its Board of Directors had approved a new share repurchase program authorizing the repurchase of up to 1,729,199 shares of the Company’s common stock, also representing approximately 5% of the Company’s then-outstanding shares, over the subsequent 12 months. This repurchase authorization expired on July 24, 2026. On August 3, 2026, the Company announced that its Board of Directors had approved a new share repurchase program authorizing the repurchase of up to 1,700,000 shares of the Company’s common stock, also representing approximately 5% of the Company’s then outstanding shares, over the subsequent 12 months. Repurchases under the new plan may be made from time to time in open market transactions. The timing and amount of any repurchases will depend on market conditions, regulatory requirements, and other corporate considerations. ITEM 3 – Defaults upon Senior Securities Not Applicable. ITEM 4 – Mine Safety Disclosures Not Applicable. ITEM 5 – Other Information (a) None (b) None (c) During the quarter ended June 30, 2026, there were no Rule 10b5‑1 trading arrangements (as defined in Item 408(a) of Regulation S-K) or non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K) adopted or terminated by any director or officer (as defined in Rule 16a‑1(f) under the Exchange Act) of the Company. 70 Table of Contents ITEM 6 – Exhibits Exhibit Index of Exhibits 2{a} Agreement and Plan of Merger, dated as of April 30, 2026, by and between Banner Corporation and Pacific Bank Corporation (incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed with the SEC on May 1, 2026 (File No. 000-26584)). 3{a} Restated Articles of Incorporation of Banner Corporation [incorporated by reference to Exhibit 3.1 (b) to the Registrant’s Current Report on Form 8-K filed with the SEC on May 24, 2022 (File No. 000-26584)]. 3{b} Amended and Restated Bylaws of Banner Corporation [incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on May 24, 2022 (File No. 000-26584)]. 10{a}* Amended and Restated Employment Agreement, with Mark J. Grescovich [incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on June 4, 2013 (File No. 000-26584]. 10{b}* Form of Supplemental Executive Retirement Program Agreement with Gary Sirmon, Michael K. Larsen, Lloyd W. Baker, Cynthia D. Purcell and Richard B. Barton [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2001 and the exhibits filed with the Form 8-K on May 6, 2008 (File No. 000-26584)]. 10{c}* Form of Employment Contract entered into with Peter J. Conner, Cynthia D. Purcell and Judith A. Steiner [incorporated by reference to exhibits filed with the Form 8-K on June 25, 2014 (File No. 000-26584)]. 10{d}* 2005 Executive Officer and Director Stock Account Deferred Compensation Plan [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 000-26584)]. 10{e}* Entry into an Indemnification Agreement with each of the Registrant’s Directors [incorporated by reference to exhibits filed with the Form 8-K on January 29, 2010 (File No. 000-26584)]. 10{f}* 2014 Omnibus Incentive Plan [incorporated by reference as Appendix C to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 24, 2014 (File No. 000-26584)] and amendments [incorporated by reference to the Form 8-K filed on March 25, 2015 (File No. 000-26584)]. 10{g}* Forms of Equity-Based Award Agreements: Incentive Stock Option Award Agreement, Non-Qualified Stock Option Award Agreement, Restricted Stock Award Agreement, Restricted Stock Unit Award Agreement, Stock Appreciation Right Award Agreement, and Performance Unit Award Agreement [incorporated by reference to Exhibits 10.2 - 10.7 included in the Registration Statement on Form S-8 dated May 9, 2014 (File No. 333-195835)]. 10{h}* 2018 Omnibus Incentive Plan [incorporated by reference to Exhibit 10.1 included in the Registration Statement on Form S-8 dated May 4, 2018 (File No. 333-224693)]. 10{i}* Amended and Restated Executive Severance and Change in Control Plan and Summary Plan Description (Amended and Restated effective as of July 1, 2023) [incorporated by reference to exhibit 10{j} included in the Form 10-Q dated June 30, 2023 (File No. 000-26584)] 10{j}* 2023 Omnibus Incentive Plan [incorporated by reference to Exhibit 10.1 included in the Registration Statement on Form S-8 dated August 30, 2023 (File No. 333-274273)]. 10{k}* Form of Director Restricted Stock Award Agreement under the Banner Corporation 2023 Omnibus Incentive Plan [incorporated by reference to Exhibit 10.2 included in the Registration Statement on Form S-8 dated August 30, 2023 (File No. 333-274273)]. 10{l}* Form of Director Restricted Stock Unit Award Agreement under the Banner Corporation 2023 Omnibus Incentive Plan [incorporated by reference to Exhibit 10.3 included in the Registration Statement on Form S-8 dated August 30, 2023 (File No. 333-274273)]. 10{m}* Form of Employee Restricted Stock Unit Award Agreement under the Banner Corporation 2023 Omnibus Incentive Plan [incorporated by reference to Exhibit 10.4 included in the Registration Statement on Form S-8 dated August 30, 2023 (File No. 333-274273)]. 10{n}* Form of Executive Restricted Stock Unit Performance Award Agreement under the Banner Corporation 2023 Omnibus Incentive Plan [incorporated by reference to Exhibit 10.5 included in the Registration Statement on Form S-8 dated August 30, 2023 (File No. 333-274273)]. 10{o}* 2020 Banner Corporation Amended and Restated Deferred Compensation Plan [incorporated by reference to exhibit 10{o} filed with the Annual Report on Form 10-K for the year ended December 31, 2023 (File No. 000-26584)]. 71 Table of Contents Exhibit Index of Exhibits 10{p}* 2025 Employee Stock Purchase Plan [incorporated by reference to Exhibit 10.1 included in the Registration Statement on Form S-8 dated November 5, 2025 (File No. 333-274273)]. 31.1 Certification of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32 Certificate of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 101.INS Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. 104 The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, formatted in Inline XBRL (included in Exhibit 101). * Compensatory plan or arrangement. 72 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Banner Corporation August 4, 2026 /s/ Mark J. Grescovich Mark J. Grescovich President and Chief Executive Officer (Principal Executive Officer) August 4, 2026 /s/ Robert G. Butterfield Robert G. Butterfield Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) 73