Banner Corporation is a bank holding company incorporated in the State of
Washington. We are primarily engaged in the business of planning, directing
and coordinating the business activities of our wholly-owned subsidiaries, Banner
Bank and Islanders Bank. Banner Bank is a Washington-chartered commercial bank
that conducts business from its main office in Walla Walla, Washington and its
199 branch offices and nine loan production offices located in Washington, Oregon,
California, Utah and Idaho. Islanders Bank is also a Washington-chartered commercial
bank that conducts business from three locations in San Juan County, Washington.
Banner Corporation is subject to regulation by the the Federal Reserve Board.
Banner Bank and Islanders Bank (the Banks) are subject to regulation by the
Washington DFI and the FDIC.
Banner Bank is a regional bank which offers a wide variety of commercial banking
services and financial products to individuals, businesses and public sector
entities in its primary market areas. Islanders Bank is a community bank which
offers similar banking services to individuals, businesses and public entities
located primarily in the San Juan Islands. The Banks primary business is that
of traditional banking institutions, accepting deposits and originating loans
in locations surrounding our offices in portions of Washington, Oregon, California,
Utah and Idaho. Banner Bank is also an active participant in the secondary market,
engaging in mortgage banking operations largely through the origination and
sale of one- to four-family and multi-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 residential
loans and consumer loans.
Since becoming a public company in 1995, we have invested significantly in
expanding our branch and distribution systems with a primary emphasis on strengthening
our market presence in our five primary markets in the Northwest. Those markets
include the four largest metropolitan areas in the Northwest: the Puget Sound
region of Washington and the greater Portland, Oregon, Boise, Idaho, and Spokane,
Washington markets, as well as our historical base in the vibrant agricultural
communities in the Columbia Basin region of Washington and Oregon. Our aggressive
franchise expansion during this period included the acquisition and consolidation
of ten commercial banks, as well as the opening of 28 new branches, the acquisition
of seven branches and relocating 12 others. More recently, our acquisition activity,
which included two whole bank transactions in 2015 and the purchase of six branches
in 2014, has expanded our geographic focus to include additional markets in
southwest Oregon, as well as select markets in California and Utah and more
than doubled the size of the Company.
In addition to the acquisitions, branch openings and relocations, since changing
our name in 2001, we also have invested heavily in marketing campaigns designed
to significantly increase the brand awareness for Banner Bank as well as expanded
product offerings. These investments, which have been significant elements in
our strategies to grow loans, deposits and customer relationships, have increased
our presence within desirable marketplaces and allow us to better serve existing
and future customers. This emphasis on growth and development resulted in an
elevated level of non-interest expense during much of this period; however,
we believe the expanded branch network, broader product line and heightened
brand awareness have created a franchise that is well positioned and is allowing
us to successfully execute on our super community bank model. That strategy
is focused on delivering customers, including middle market and small businesses,
business owners, their families and employees, a compelling value proposition
by providing the financial sophistication and breadth of products of a regional
bank while retaining the appeal, responsiveness, and superior service level
of a community bank.
Banner Corporations successful execution on its super community bank model
and its strategic initiatives, have delivered solid profitability and growth.
We have made substantial progress on our goals to achieve and maintain the Companys
moderate risk profile as well as to develop and continue strong earnings momentum.
Highlights of this success have included substantial improvement in our asset
quality, outstanding client acquisition and account growth, significantly increased
non-interest-bearing deposit balances and strong revenue generation from core
operations.
Like most financial institutions, our operating results in recent years have
been meaningfully impacted by the exceptionally low interest rate environment
and our future operating results and financial performance will be significantly
affected by the course of economic activity. However, over the past five years
we have substantially added to our client relationships and account base, as
well as significantly improved our risk profile by aggressively managing and
reducing our problem assets, which has resulted in stronger and sustainable
revenues and low credit costs, and which we believe has positioned the Company
well to meet a challenging economic environment with continued success.
0.82% 