BANNER CORP Q1 FY2025 earnings call

• Mark provided high-level comments on Q1 performance, actions to support stakeholders, and thanked the team. - Jill discussed the loan portfolio, credit quality, impact of tariffs, and portfolio reviews. - Rob detailed operating performance, balance sheet, net interest income, net interest margin, and capital/liquidity profile.

Banner Corporation reported a net profit available to common shareholders of $45.1 million or $1.30 per diluted share for the quarter ended March 31, 2025. Pretax pre-provision earnings excluding gains and losses on the sale of securities and changes in fair value of financial instruments were $59 million in Q1 2025 compared to $53 million in Q1 2024. Revenue from core operations was $160 million in Q1 2025 versus $150 million in Q1 2024. Core deposits represent 89% of total deposits. Loans increased 5% and core deposits increased 3% year over year.

• Expect NIM expansion in Q2 assuming Moody's interest rate forecast. - Targeting mid single digit loan growth for 2025. - Rate cuts in H2 may impact earning asset yields but funding costs may come down.

• Immigration enforcement activities affecting agricultural and border communities. - Tariffs negatively impacting West Coast businesses and small businesses. - Economic uncertainty affecting client confidence.

Q: Jeff Rulis asked about margin and credit trends.

A: Rob discussed NIM expectations and Jill talked about ag sector risks and loan growth targets.

Q: David Feaster inquired about deposits, funding, and market competition.

A: Rob discussed deposit strategies and loan growth funding, while Jill talked about portfolio exposure to tariffs.

Q: Andrew Liesch asked about capital plans and M&A.

A: Rob and Mark discussed capital priorities and M&A considerations in volatile market.

Q: Andrew Terrell asked about margin progression and expenses.

A: Rob discussed margin outlook and expense run rate.

Q: Kelly Motta asked about tax rate and fees.

A: Rob provided tax rate insights and fee outlook.

Q: Tim Coffey asked about economic outlook and California market.

A: Mark and Jill discussed economic uncertainty and California market growth drivers