Transcript: Banner Q2 2026 Earnings Conference Call

Banner (NASDAQ: BANR ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

31 per share in the previous year. 4 million, with a 6% revenue increase from the prior year, demonstrating strong core deposit base and net interest margin. Strategic focus remains on maintaining a moderate risk profile and growing new client relationships through the Super Community bank strategy. Loan originations showed strong growth, with a 45% increase from the previous quarter, driven by commercial, construction, and consumer lending.

Deposits decreased by $51 million due to seasonal tax payments, but the company maintains strong liquidity with an 87% loan-to-deposit ratio. Management highlighted the successful integration of new loan origination systems to improve operational efficiency, despite increased expenses this quarter. Non-performing assets rose slightly due to a condo project but remain manageable, and credit quality metrics are stable with a strong loan loss reserve. Future guidance suggests continued loan growth and stable deposit costs, with expectations of slight margin expansion in Q3.

The Bank of the Pacific acquisition is on track for Q3 closure, expected to enhance Banner's core deposit base. Recognition as one of America's 100 Best Banks and other accolades reflect market confidence in Banner's business model and performance. Full Transcript Jordan, Operator Thank you for standing by. My name is Jordan, and I'll be your conference operator today.

At this time, I'd like to welcome everyone to the Banner Corporation Second Quarter 2026 Conference Call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad.

If you'd like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Mark Greskovich, President and CEO of Banner Corporation. Mark Greskovich, President and CEO Thank you, Jordan, and good morning, everyone.

I would also like to welcome you to the second quarter 2026 earnings call for Banner Corporation. Joining me on the call today is Rob Butterfield, Banner Corporation's Chief Financial Officer, Jill Rice, our Chief Credit Officer, and Rich Arnold, our Head of Investor Relations. Rich, would you please read our forward-looking safe harbor statement? Rich Arnold, Head of Investor Relations Sure, Mark.

Good morning. Our presentation today discusses Banner's business outlook and will include forward-looking statements. Statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecasts of financial or other performance measures, and statements about Banner's general outlook for economic and other conditions. We also may make other forward-looking statements in the question-and-answer periods following management's discussion.

These forward-looking statements are subject to a number of risks and uncertainties, and actual results may differ materially from those discussed today. Information on the risk factors that could cause actual results to differ from are available from the earnings press release that was released yesterday and a recently filed Form 10-Q for the quarter ended March 31, 2026. Forward-looking statements are effective only as of the day they are made, and Banner assumes no obligation to update information concerning its expectations. Mark Greskovich, President and CEO Thank you, Rich.

As is customary, today we will cover four primary items with you. First, I will provide you high-level comments on Banner's second quarter 2026 performance. Second, the actions Banner continues to take to support all of our stakeholders, including our Banner team, our clients, our communities, and our shareholders. Third, Jill Rice will provide comments on the current status of our loan portfolio.

And finally, Rob Butterfield will provide more detail on our operating performance for the quarter as well as comments on our balance sheet. Before I get started, I want to thank all of my 2,000 colleagues in our company who are working extremely hard to assist our clients and our communities. Banner has lived our core values, summed up as doing the right thing, for the past 135 years. Our overarching goal continues to be to do the right thing for our clients, our communities, our colleagues, our company, and our shareholders, and to provide a consistent and reliable source of commerce and capital through all economic cycles and change events.

I am pleased to report again to you that is exactly what we continue to do. I am very proud of the entire Banner team that are living our core values. Now let me turn to an overview of our performance. 43 per diluted share for the quarter ended June 30, 2026.

31 per share for the second quarter of 2025. Our strategy to maintain a moderate risk profile and the investments we have made and continue to make in order to improve our operating performance have positioned the company well for the future. Rob will discuss these items in more detail shortly. The strength of our balance sheet, coupled with a strong reputation we maintain in our markets, will allow us to manage through the current market uncertainty.

To illustrate the core earnings power of Banner, I would d