On this page of StockholderLetter.com we present the latest annual shareholder letter from BANNER CORP — ticker symbol BANR. Reading current and past BANR letters to shareholders can bring important insights into the investment thesis.

 •  4/9/2025 Letter Continued (Full PDF)
 •  4/18/2023 BANR Stockholder Letter
 •  4/9/2024 BANR Stockholder Letter
 •  More "Banking & Savings" Category Stockholder Letters
 •  BANR Benford's Law Stock Score = 99

BANR Shareholder/Stockholder Letter Transcript:

Banner Corporation
2024 Annual Report
Dear Fellow Shareholders:
Consistently delivering solid financial results is our long-standing, unwavering
goal. We   ve been doing just that for many years. That may seem boring to some,
but I believe it signals reliability. After all, delivering value to our shareholders is
what   s important. We   re happy to be called    boring      especially during times of
considerable economic uncertainty.
Each year we focus on being a top-tier performer among our regional peers,
and we delivered that again last year. We achieved it by staying focused on
what we can control   consistently implementing our super community bank
strategy, maximizing our net interest margin advantage, delivering outstanding
service, and effectively maintaining our moderate risk profile. Some years we
create opportunities and can over-deliver profit, and other years we overcome
operating environment challenges to deliver more modest gains. You can count
on us to remain focused on leveraging our strengths in this regard. What   s
   boring    at first glance is rich with stability and dependability.
Growing Shareholder Value
Despite a year of economic uncertainty, we delivered solid results and
profitability in 2024, gaining momentum as the year progressed and positioning
us well going into 2025. Revenue was $608.6 million and net income was
$168.9 million, or $4.88 per diluted share, and cash dividends were $1.92 per
share, consistent with the prior year. We increased common shareholder equity
per share to $51.49, compared to $48.12 a year ago. We continue to focus on
delivering long-term value on your investment, as evidenced by the cumulative
total shareholder return of 43% over the past five years.
Stable Deposits Deliver Loan Growth
We closed 2024 with $13.51 billion in deposits, a nice increase in a highly
competitive rate environment. Our core deposits remained strong, representing
89% of total deposits   higher than most of our peers. Generating our own stable
on-balance sheet liquidity remained fundamental to our success and provided
flexibility to fund loan growth.
We grew outstanding loan balances five percent in 2024, with demand trending
upward as the year progressed   despite another year of weakened loan demand
across the industry. We took advantage of market disruption and the broader
liquidity crisis across the financial sector that began in 2023 and continued into
2024. By staying true to our moderate risk profile and diversified loan portfolio   
by business type, industry, loan type and geographic market   we remained stable
during a time of market volatility. This set us apart and allowed our experienced
team to continue servicing the needs of our existing clients and gain new market
share, especially in our Commercial Banking and Commercial Real Estate loan
segments. In fact, year-over-year production was up for most loan types.
Net Interest Margin
Last year   s loan growth and yields on interest-earning assets allowed us to
maintain a strong net interest margin of 3.75% at year-end on a tax equivalent
basis. Thanks to our steady low-cost deposits and strong client relationships, our
net interest margin remained stronger than many peer banks.
President and CEO
Mark Grescovich
Deposit Portfolio
55%
Interest-bearing transaction
and savings accounts
34%
Non-interest
bearing deposits
Total Deposits
$13.51B
11%
CDs
Loan Portfolio
6% Consumer
14% Residential
34% CRE*
$11.35B
8% Multifamily
14% Construction
24% Commercial/Agriculture
*CRE:
9% Owner Occupied
14% Investment Properties
11% Small Balance CRE

Employee-Driven Results
Our highly engaged workforce and performance-driven culture proved
fundamental to our success again last year. Results from our 2024 employee
engagement survey showed an impressive 86% overall favorable engagement
score, which is well above the 70% mark for a best-practice organization in the U.S.
We invested in several important projects last year, continuing our commitment to
invest in innovation and scalability, continually improving back-end processes and
efficiencies. Most noteworthy was selecting a new loan and deposit origination
system and planning its implementation, which will happen in 2025. Our largest
technology improvement initiative in decades, this investment will considerably
expedite account opening, provide a superior client experience and greatly improve
our related efficiency. We also completed several highly impactful continuous
improvement projects, creating long-lasting benefits to our operating performance
and productivity.
Select Financial Highlights
Our results remain rooted in maintaining our moderate risk profile, cultivating
our fortress balance sheet and focusing on long-term client relationships. Our
performance last year again demonstrated our ability to thrive in all economic
cycles and change events. The company   s 2024 financial highlights include:
    Assets grew to $16.20 billion.
    Total revenue was $608.6 million.
    Net income was $168.9 million, or $4.88 per diluted share.
    Net interest margin, on a tax equivalent basis, was 3.75%.
    Total deposits were $13.51 billion, up from $13.03 billion in 2023, with core
deposits representing 89% of total deposits.
    Net loans receivable increased 5% to $11.20 billion, an all-time high, and
average loan yields increased to 5.97%, compared to 5.58% the prior year.
    Return on average assets was 1.07% for the year.
Additional Accomplishments
We received independent recognition from numerous national sources last year
for our financial strength and stability as well as our outstanding customer service,
further affirming our value proposition continues to resonate with clients. For
the eighth consecutive year, Forbes ranked us one of America   s 100 Best Banks.
Newsweek named us to their inaugural list of the Best Regional Banks in America.
Newsweek also named Banner one of the Most Trustworthy Companies in America
and the highest-ranking domestic bank on their list of the World   s Most Trustworthy
Companies. Additionally, 2024 was our eleventh year with a five-star rating from
BauerFinancial with the additional designation of an Exceptional Performance Bank.
At the close of the year, deposits were stable, loan production was trending up and
pipelines were strong. As we turn toward 2025, we remain committed to taking
advantage of market disruption to deliver organic growth while continuing to
identify new opportunities to increase revenue and limit expenses. Our talented
team understands that by doing everyday tasks well, we earn the right to continue
serving our clients and gain new banking relationships. You can expect us to
stay true to our values and guiding principle to    do the right thing    for all our
shareholders, clients, employees and communities, while striving to deliver value to
you in the form of consistent, reliable returns on your investment.
Sincerely,
Mark Grescovich
President and Chief Executive Officer
Banner Corporation and Banner Bank
Cash Dividend Per Share
$1.92 $1.92
$2.00
$1.64
$1.75
$1.76
$1.50
$1.25
$1.23
$1.00
$0.75
$0.50
$0.25
$0.00
2020 2021 2022 2023 2024
Each total above is from year-end.

Directors
Roberto R. Herencia Connie R. Collingsworth Mark J. Grescovich John R. Layman
Kevin F. Riordan
(Chairman)
Ellen R.M. Boyer
Margot J. Copeland
David A. Klaue
Paul J. Walsh
John Pedersen Terry S. Schwakopf
Executive Officers
Mark J. Grescovich, President and Chief Executive Officer
Sherrey Luetjen, EVP, General Counsel, Secretary
Robert G. Butterfield, EVP, Chief Financial Officer
Mark Borrecco, EVP, Chief Banking Officer
James P.G. McLean, EVP, Commercial Real Estate
Lending Division
Janet M. Brown, EVP, Chief Information Officer
Scott Newman, EVP, Chief Audit Executive
James M. Costa, EVP Chief Risk Officer and
Chief Operating Officer
Cynthia D. Purcell, EVP, Chief Strategy and
Administration Officer
Karen Harrison, EVP, Community Banking Executive
M. Kirk Quillin, EVP, Chief Commercial Banking
Executive
Kayleen R. Kohler, EVP, Human Resources,
Chief Diversity Officer
James T. Reed, Jr., EVP, Commercial Banking
Kenneth A. Larsen, EVP, Mortgage Banking Director
Jill M. Rice, EVP, Chief Credit Officer
Director and executive officer information is as of December 31, 2024.
Our Value Proposition
Markets We Serve
Connected. Knowledgeable. Responsive.
Bellingham
Wenatchee
Bellevue
Seattle
Spokane
It   s not only what we do, it   s how we do it   with relentless effort.
Tacoma
Our Vision Statement
Yakima
We strive to be the bank of choice in the markets we serve. We
are committed to being the best provider of financial services in
the West.
Our Mission Statement
Vancouver
Portland
Tri-Cities
Clarkston Lewiston
Walla Walla
Pendleton
Eugene
Coos Bay
Boise
Medford
Banner Bank is a dynamic, full-service financial institution operating
safely and profitably within a framework of shared integrity.
Working as a team, we will deliver superior products and services to
our valued clients. We will emphasize strong client relationships and a
high level of community involvement. We will provide a culture which
attracts, empowers, rewards and provides growth opportunities for
our employees. Our success will build long-term shareholder value.
Red Bluff
Sacramento
Values
   Do the Right Thing.   
This means we believe in:
    Quality
    Honesty and Integrity
    Trust
    Mutual Respect
    Teamwork
    Accountability
Los Angeles
Ontario
San Diego

Corporate Headquarters
Dividend Payments
10 South First Avenue
PO Box 907
Walla Walla, WA 99362-0265
509-527-3636
800-272-9933
Website: bannerbank.com
Email: bannerbank@bannerbank.com
Dividend payments are reviewed quarterly by the
board of directors and, if appropriate and authorized,
typically would be paid in the months of February, May,
August and November. To avoid delay or lost mail, and
to reduce costs, we encourage you to request direct
deposit of dividend payments to your bank account.
Subsidiaries
Banner Bank     bannerbank.com
Community Financial Corporation
Transfer Agent and Registrar
Computershare Trust Company, N.A.
150 Royall St., Suite 101
Canton, MA 02021
Independent Public Accountants
and Auditors
Moss Adams LLP
Fox Tower
805 SW Broadway, Suite 1400
Portland, OR 97205
To enroll in the Direct Deposit Plan, call
Computershare Investor Services at 800-697-8924.
Dividend Reinvestment and
Stock Purchase Plan
Banner Corporation offers a dividend reinvestment
program whereby shareholders may reinvest all or a
portion of their dividends in additional shares of the
Company   s common stock. Information concerning
this optional program is available from the Investor
Relations Department or from Computershare
Investor Services at 800-697-8924.
Investor Information
Special Counsel
Shareholders and others will find the Company   s
financial information, press releases and other
information on the Company   s website at
www.bannerbank.com.
Breyer & Associates PC
8180 Greensboro Drive, Suite 785
McLean, VA 22102
Investor Relations, Banner Corporation
PO Box 907
Walla Walla, WA 99362
Annual Meeting of Shareholders
Or call 800-272-9933 to obtain a hard copy of these
reports, including exhibits, without charge.
10 a.m. Pacific Time, Thursday, May 22, 2025
The Annual Meeting of Shareholders will be conducted
solely online via live webcast.
You can attend by visiting:
https://meetnow.global/MKLZ2QL
No password is required, though to vote or ask a
question, shareholders must provide their unique
control number.
SKU: 004CTN3E23
Member FDIC

2024
Banner Corporation 10-K



 4/9/2025 Letter Continued (Full PDF)