Banner Corporation, incorporated on May 14, 1998, is a bank holding company. The Company is engaged in the business of planning, directing and coordinating the business activities of its subsidiaries, Banner Bank and Islanders Bank. Banner Bank is a Washington-chartered commercial bank and as of December 31, 2016, it had 187 branch offices and 11 loan production offices located in Washington, Oregon, California, Utah and Idaho. Banner Bank is a regional bank, which offers a range of commercial banking services and financial products to individuals, businesses and public sector entities in its primary market areas. Banner Bank is also an active participant in the secondary market, engaging in mortgage banking operations through the origination and sale of one- to four-family and multi-family residential loans. Islanders Bank is also a Washington-chartered commercial bank that conducts business from three locations in San Juan County, Washington. 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.
Lending Activities
The Company's 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. All of its lending activities are conducted through Banner Bank, its subsidiary, Community Financial Corporation, a residential construction lender located in Portland, Oregon, and Islanders Bank. The Company originates loans for its own loan portfolio and for sale in the secondary market. It offers a range of floating or adjustable interest rate products. The Company offers loans for commercial business and real estate, agricultural business, and construction and development purposes. Commercial real estate loans include owner-occupied, investment properties and multifamily residential real estate. It also originates construction, land and land development loans, a significant component of which is its residential one- to four-family construction loans. Its commercial business lending is directed toward meeting the credit and related deposit and treasury management needs of various small- to medium-sized business and agribusiness borrowers operating in its primary market areas. Its commercial business lending also includes participation in certain national syndicated loans.
At both Banner Bank and Islanders Bank, the Company originates loans secured by first mortgages on one- to four-family residences in the markets it serves. Through its mortgage banking activities, the Company sells residential loans on either a servicing-retained or servicing-released basis. It offers fixed- and adjustable-rate mortgages (ARMs). It has invested a significant portion of its loan portfolio in residential construction and land loans to professional home builders and developers. It also makes construction loans to qualified owner occupants. It also originates construction loans for commercial and multifamily real estate. As of December 31, 2016, construction, land and land development loans totaled $823.1 million. It also makes land loans to developers, builders and individuals to finance the acquisition and/or development of improved lots or unimproved land. It originates loans secured by multifamily and commercial real estate including, loans for construction of multifamily and commercial real estate projects. Commercial real estate loans are made for both owner-occupied and investor properties. As of December 31, 2016, its loan portfolio included $1.99 billion in non-owner-occupied commercial real estate loans, $1.35 billion in owner-occupied commercial real estate loans and $248.2 million in multifamily loans. Multifamily and commercial real estate loans originated by the Company are both fixed- and adjustable-rate loans.
The Company's commercial real estate portfolio consists of loans on a range of property types with no large concentrations by property type, location or borrower. As of December 31, 2016, the average size of its commercial real estate loans was $618,000 and the largest commercial real estate loan in its portfolio was approximately $17.7 million. The Company is active in small- to medium-sized business lending and is engaged in agricultural lending primarily by providing crop production loans. Its commercial bankers are focused on local markets. Commercial business loans may be unsecured or secured by special purpose or rapidly depreciating assets, such as equipment, inventory and receivables. As of December 31, 2016, commercial business loans totaled $1.21 billion, including $138.9 million of shared national credits. As of December 31, 2016, agricultural business loans, including collateral secured loans to purchase farmland and equipment, totaled $369.2 million. It also originates loans to finance the purchase of farm equipment.
The Company originates a range of consumer loans, including home equity lines of credit, automobile, boat and recreational vehicle loans and loans secured by deposit accounts. As of December 31, 2016, it had $650.5 million in consumer related loans, including $493.2 million in consumer loans secured by one- to four-family residences. The Company originates real estate loans in its market areas by direct solicitation of real estate brokers, builders, developers, depositors, walk-in customers and visitors to its Internet Website. In addition, it has specialized loan origination units, focused on construction and land development, commercial real estate and multifamily loans. In addition to commercial real estate loans, its commercial bankers solicit commercial and agricultural business loans through call programs focused on local businesses and farmers. It originates consumer loans and small business (including Quick Step) commercial business loans through various marketing efforts directed primarily toward its existing deposit and loan customers. Consumer loans and Quick Step commercial business loan applications are primarily underwritten and documented by centralized administrative personnel. As of December 31, 2016, its net loan portfolio totaled $7.37 billion.
Investment Activities
The Company's investment securities include Treasury obligations, securities of various federal agencies (including government-sponsored enterprises), mortgage-backed and asset-backed securities, certain certificates of deposit of insured banks and savings institutions, bankers' acceptances, repurchase agreements, federal funds, commercial paper, corporate debt and equity securities and obligations of states and their political subdivisions. Its policies generally limit investments to United States Government and agency (including government-sponsored entities) securities, municipal bonds, certificates of deposit, corporate debt obligations and mortgage-backed securities. Investment in mortgage-backed securities may include those issued or guaranteed by Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae or GNMA) and investment grade privately issued mortgage-backed securities, as well as collateralized mortgage obligations (CMOs). As of December 31, 2016, its consolidated investment portfolio totaled $1.09 billion and consisted of principally of the United States Government agency obligations, mortgage-backed securities, municipal bonds, corporate debt obligations, and asset-backed securities.
Sources of Funds
The Company's sources of funds for lending and other investment purposes are deposits, Federal Home Loan Banks (FHLB) advances (or other borrowings) and loan repayments. Borrowings may be used on a short-term basis to compensate for reductions in the availability of funds from other sources. Borrowings may also be used on a longer-term basis to fund loans and investments, as well as to manage interest rate risk. In addition, its electronic banking activities, including debit card and automated teller machine (ATM) programs, online Internet banking services, customer remote deposit and mobile banking capabilities are all directed at providing products and services. It attracts deposits from within its primary market areas by offering a selection of deposit instruments, including non-interest-bearing checking accounts, interest-bearing checking accounts, money market deposit accounts, regular savings accounts, certificates of deposit, cash management services and retirement savings plans. As of December 31, 2016, it had $8.12 billion of deposits. As of December 31, 2016, it had $54.2 million of borrowings from the FHLB.
10 S 1st Ave
The company trades on NASDAQ exchange. The company headquarter is located in Walla Walla, WA. The company was established in the 1890.| Ticker | BANR |
| Long Name | Banner Corporation |
| Short Name | Banner |