REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

REGULATORY CAPITAL REQUIREMENTS

Banner is a bank holding company registered with the Federal Reserve.  Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve.  Banner Bank, as a state-chartered federally insured commercial bank, is subject to the capital requirements established by the FDIC.  The Federal Reserve requires Banner to maintain capital adequacy that generally parallels the FDIC requirements.

The following table shows the regulatory capital ratios of the Company and the Bank and the minimum regulatory requirements (dollars in thousands):

	Actual				Minimum for Capital Adequacy Purposes				Minimum to be Categorized as “Well Capitalized” Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2023:
Banner Corporation—consolidated:
Total capital to risk-weighted assets	$	1,904,533	14.58	%	$	1,045,181	8.00	%	$	1,306,476	10.00	%
Tier 1 capital to risk-weighted assets	1,650,872		12.64		783,886		6.00		783,886		6.00
Tier 1 capital to average leverage assets	1,650,872		10.56		625,387		4.00		n/a		n/a
Tier 1 common equity to risk-weighted assets	1,564,372		11.97		587,914		4.50		n/a		n/a
Banner Bank:
Total capital to risk-weighted assets	1,789,371		13.69		1,045,273		8.00		1,306,592		10.00
Tier 1 capital to risk-weighted assets	1,635,710		12.52		783,955		6.00		1,045,273		8.00
Tier 1 capital to average leverage assets	1,635,710		10.46		625,298		4.00		781,622		5.00
Tier 1 common equity to risk-weighted assets	1,635,710		12.52		587,966		4.50		849,285		6.50
December 31, 2022:
Banner Corporation—consolidated:
Total capital to risk-weighted assets	$	1,769,064	14.04	%	$	1,008,232	8.00	%	$	1,260,290	10.00	%
Tier 1 capital to risk-weighted assets	1,528,694		12.13		756,174		6.00		756,174		6.00
Tier 1 capital to average leverage assets	1,528,694		9.45		647,345		4.00		n/a		n/a
Tier 1 common equity to risk-weighted assets	1,442,194		11.44		567,130		4.50		n/a		n/a
Banner Bank:
Total capital to risk-weighted assets	1,684,766		13.38		1,007,325		8.00		1,259,156		10.00
Tier 1 capital to risk-weighted assets	1,544,396		12.27		755,494		6.00		1,007,325		8.00
Tier 1 capital to average leverage assets	1,544,396		9.55		646,935		4.00		808,668		5.00
Tier 1 common equity to risk-weighted assets	1,544,396		12.27		566,620		4.50		818,452		6.50

At December 31, 2023, Banner and the Bank each exceeded the requirements to be “well capitalized” and the fully phased-in capital conservation buffer requirement. There have been no conditions or events since December 31, 2023 that have materially adversely changed the Tier 1 or Tier 2 capital of the Company or the Bank. However, events beyond the control of the Bank, such as weak or depressed economic conditions in areas where the Bank has most of its loans, could adversely affect future earnings and, consequently, the ability of the Bank to meet its respective capital requirements. The Company may not declare or pay cash dividends on, or repurchase, any of its shares of common stock if the effect thereof would cause equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements.