Banner Corporation 2018 Annual Report bannerbank.com Let’s create tomorrow, together. Corporate Headquarters 10 South First Ave. PO Box 907 Walla Walla, WA 99362-0265 Banner Corporation 509-527-3636 2018 Annual Report 800-272-9933 [email protected] Member FDIC Custom Business Solutions Specialized Capabilities Integral to Custom Business Solutions Specialized Capabilities Integral to Community Financial Continues Building Client Growth The world of business is ever-changing. So it’s Client Growth on Expertise and Trust essential that we continually help our business The world of business is ever-changing. So it’s clients stay ahead of the pace, whatever their essential that we continually help our business Cash Management - size or structure. Our approach is to take time to Our compelling line-up of treasury services meets a clients stay ahead of the pace, whatever their Cash Management - When it comes to financing construction, land understand the companies and industries we serve, multitude of client needs, and is a growing area of our size or structure. Our approach is to take time to Our compelling line-up of treasury services meets a development and lot purchases in Oregon and fostering trusting relationships and recommending business. With service offerings including positive pay, understand the companies and industries we serve, multitude of client needs, and is a growing area of our Southwest Washington, Community Financial solutions tailored to support their success. analyzed checking, international wires and more, we fostering trusting relationships and recommending business. With service offerings including positive pay, 100 Best Banks in America - Forbes Corporation (CFC), a wholly-owned subsidiary of carefully select platforms and vendor partners to assist solutions tailored to support their success. analyzed checking, international wires and more, we (2019, 2018, 2017) Banner Bank, is a recognized market leader. Since it started in April 2000, the company has provided Over the years, we’ve gained considerable us in delivering dynamic, user-friendly applications. carefully select platforms and vendor partners to assist expertise serving industries ranging from aerospace Over the years, we’ve gained considerable $5.7 billion in loans to help build homes and housing Our team is generating increasing demand from large us in delivering dynamic, user-friendly applications. manufacturing to commercial fishing. In ag banking expertise serving industries ranging from aerospace developments. corporations and small businesses to municipal and Our team is generating increasing demand from large alone, our specialists grasp the distinct challenges manufacturing to commercial fishing. In ag banking governmental agencies with complex treasury needs. corporations and small businesses to municipal and and product life cycles faced by grape growers as alone, our specialists grasp the distinct challenges Company founder and president, John Satterberg, governmental agencies with complex treasury needs. compared to hop farmers, and would never put and product life cycles faced by grape growers as attributes the success to the strong, mutually trusting them in the same barrel. compared to hop farmers, and would never put Bauer Financial five-star rating relationships the experienced staff has fostered with Municipal/Public Finance - builders and other clients over the years. Another growing area of our business is municipality them in the same barrel. Municipal/Public Finance - Serving diverse clients well means having many and public finance. For example, in 2018 we provided Another growing area of our business is municipality “We provide easy access to information and products and services to draw upon, from the City of Rialto, California, the financing to install Serving diverse clients well means having many and public finance. For example, in 2018 we provided exceptional, consistent service,” he said. “Builders and robust credit products and business checking to more than 3,800 new LED street lights, projected products and services to draw upon, from the City of Rialto, California, the financing to install other clients know they can rely on us.” competitive deposit and treasury solutions — some to save the city more than $360,000 annually in robust credit products and business checking to more than 3,800 new LED street lights, projected of which are detailed on these pages. energy and maintenance costs – and as much as $4.2 competitive deposit and treasury solutions — some to save the city more than $360,000 annually in The Best Bank in the Pacific Region million over 20 years. Our public financing experts of which are detailed on these pages. energy and maintenance costs – and as much as $4.2 are bringing straight-forward solutions and expertise million over 20 years. Our public financing experts of U.S. - Money Magazine like this to cities, towns and special purpose districts are bringing straight-forward solutions and expertise (Wash., Calif., Ore. & Alaska) across our footprint. like this to cities, towns and special purpose districts across our footprint. Banking Services for Families Banking Services for Families and Individuals Leaning in on Affordable Housing - and Individuals Banner is actively engaged in helping address the Leaning in on Affordable Housing - Islanders Excels in Unique Just as in Banner’s earliest days, we understand that Washington Regional Lender of the affordable housing shortage. We take a multifaceted Banner is actively engaged in helping address the Washington Landscape clients’ financial needs and goals change depending Just as in Banner’s earliest days, we understand that approach, including partnering with public and affordable housing shortage. We take a multifaceted Year & Oregon Star Performer - U.S. on where they are in life. By getting to know the clients’ financial needs and goals change depending private entities to find creative solutions. Last year, approach, including partnering with public and Small Business Administration people we serve, our bankers can offer products on where they are in life. By getting to know the we provided financing for a 69-unit housing and private entities to find creative solutions. Last year, Serving clients in a region accessible only by airplane that fit our clients’ needs and lifestyle now and into people we serve, our bankers can offer products office complex in Seattle’s International District. The we provided financing for a 69-unit housing and or boat is no obstacle to the success of Banner the future. that fit our clients’ needs and lifestyle now and into developer, Low Income Housing Institute, is one of office complex in Seattle’s International District. The Corporation subsidiary Islanders Bank. In fact, for the future. western Washington’s largest providers of housing developer, Low Income Housing Institute, is one of more than 35 years, the independently run company Beyond abundant options for checking, savings, lines of credit and more, we help clients stay for veterans, people with disabilities and the elderly, Beyond abundant options for checking, savings, western Washington’s largest providers of housing has forged robust relationships with the communities connected to their accounts any time, any place, and is a client we’ve partnered with before on similar lines of credit and more, we help clients stay for veterans, people with disabilities and the elderly, Highest Customer Satisfaction with it serves with branches in Friday Harbor and on Orcas with a full suite of competitive digital banking projects. connected to their accounts any time, any place, and is a client we’ve partnered with before on similar Retail Banking in the Northwest – and Lopez Islands. solutions. We were again honored to earn external with a full suite of competitive digital banking projects. J.D. Power* (two years in a row) “We had a great year,” Islanders President and CEO national recognition for our products and services San Diego County is another area of focus. There, we solutions. We were again honored to earn external teamed up with several agencies and advocacy groups San Diego County is another area of focus. There, we Brad Williamson said. “We have a very loyal client and overall client satisfaction. national recognition for our products and services *Banner Bank received the highest score in the to provide financing for affordable housing projects, teamed up with several agencies and advocacy groups base, and we’ve had a lot of success working with and overall client satisfaction. Northwest in the J.D. Power 2017-2018 U.S. including a 77-unit complex in Pacific Heights to provide financing for affordable housing projects, local businesses, municipalities and nonprofits. Local Of course, we continued our commitment to Retail Banking Satisfaction Studies of customers’ financial education, from first-time homebuyer Ranch that opened in November and several other Of course, we continued our commitment to including a 77-unit complex in Pacific Heights decision making and discipline helped us achieve satisfaction with their retail bank. classes to informative blogs on our website. While collaborations that are under construction. financial education, from first-time homebuyer Ranch that opened in November and several other strong credit metrics and very good overall financial Visit jdpower.com/awards technology is essential in banking today, we classes to informative blogs on our website. While collaborations that are under construction. performance.