BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Tables)

6 Months Ended

Jun. 30, 2015

The following table presents the key components of acquisition related costs in connection with the Branch Acquisition, the acquisition of Siuslaw, and the proposed acquisition of AmericanWest for the three and six months ended June 30, 2015 and 2014 (in thousands):



	Three Months Ended June 30				Six Months Ended June 30
	2015		2014		2015		2014
Acquisition-related costs recognized in other operating expenses:
Personnel severance/retention fees	$	216	$	—	$	216	$	—
Non-capitalized equipment and repairs	26		29		50		29
Client communications	4		236		70		238
Information/computer data services	466		632		506		632
Payment and processing expenses	—		271		—		271
Professional services	2,946		587		4,226		619
Miscellaneous	227		224		465		235
	$	3,885	$	1,979	$	5,533	$	2,024

Siuslaw Financial Group, Inc [Member]

Business Acquisition [Line Items]

Schedule of Components of Business Acquisition

The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands):



	Siuslaw
	March 6, 2015
Consideration to Siuslaw shareholders:
Cash paid			$	5,806
Fair value of common shares issued			58,100
Total consideration			63,906
Fair value of assets acquired:
Cash and cash equivalents	$	84,405
Securities—available-for-sale	12,865
Loans receivable (contractual amount of $252.2 million)	247,098
Real estate owned, held for sale	2,525
Property and equipment	8,127
Core deposit intangible	3,895
Other assets	11,391
Total assets acquired	370,306
Fair value of liabilities assumed:
Deposits	316,406
Junior subordinated debentures	5,959
Other liabilities	5,183
Total liabilities assumed	327,548
Net assets acquired			42,758
Goodwill			$	21,148

Pro Forma Information

The following table presents certain unaudited pro forma information for illustrative purposes only, for the three and six months ended June 30, 2015 and 2014 as if Siuslaw had been acquired on January 1, 2014. This unaudited estimated pro forma financial information combines the historical results of Siuslaw with the Company’s consolidated historical results. The pro forma information is not indicative of what would have occurred had the acquisition actually occurred on January 1, 2014. In particular, no adjustments have been made to eliminate the impact of other-than-temporary impairment losses and losses recognized on the sale of securities that may not have been necessary had the investment securities been recorded at fair value as of January 1, 2014. The unaudited pro forma information does not consider any changes to the provision for credit losses resulting from recording loan assets at fair value. Additionally, Banner expects to achieve further operating cost savings and other business synergies, including revenue growth, as a result of the acquisition which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented (in thousands except per share amounts):



	Pro Forma
	Three Months Ended June 30				Six Months Ended June 30
	2015		2014		2015		2014
Total revenues (net interest income plus non-interest income	$	67,598	$	68,671	$	130,762	$	124,500
Net income	$	13,249	$	17,977	$	25,767	$	28,526
Earnings per share - basic	$	0.64	$	0.87	$	1.24	$	1.38
Earnings per share - diluted	$	0.64	$	0.87	$	1.24	$	1.38

Schedule of Purchased Impaired Loans

The following table presents the acquired purchased credit-impaired loans as of the acquisition date (in thousands):



	Siuslaw
	March 6, 2015
Acquired purchased credit-impaired loans:
Contractually required principal and interest payments	$	11,134
Nonaccretable difference	(3,238		)
Cash flows expected to be collected	7,896
Accretable yield	(2,239		)
Fair value of purchased credit-impaired loans	$	5,657

Six Oregon Branches [Member]

Business Acquisition [Line Items]

Schedule of Components of Business Acquisition

The following table displays the fair value as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands):



	Branch Acquisition
	June 20, 2014
Total consideration			$	—
Fair value of assets acquired:
Cash and cash equivalents	$	127,557
Loans receivable (contractual amount of $88.3 million)	87,923
Property and equipment	3,079
Core deposit intangible	2,372
Other assets	275
Total assets acquired	221,206

Fair value of liabilities assumed:
Deposits	212,085
Other liabilities	42
Total liabilities assumed	212,127
Net assets acquired			$	9,079
Acquisition bargain purchase gain			$	(9,079	)