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The IR Group BANNER CORPORATION Exhibit 99.1 CONTACT : MARK J. GRESCOVICH , PRESIDENT & CEO PETER J. CONNER , CFO ( 509 ) 527-3636 NEWS RELEASE Banner Corporation Reports Net Income of $ 46.9 Million , or $ 1.33 Per Diluted Share , for First Quarter 2021 ; Declares Quarterly Cash Dividend of $ 0.41 Per Share Walla Walla , WA - April 21 , 2021 - Banner Corporation ( NASDAQ GSM : BANR ) ( " Banner " ) , the parent company of Banner Bank , today reported net income of $ 46.9 million , or $ 1.33 per diluted share , for the first quarter of 2021 , a 20 % increase compared to $ 39.0 million , or $ 1.10 per diluted share , for the preceding quarter and a 178 % increase compared to $ 16.9 million , or $ 0.47 per diluted share , for the first quarter of 2020. Banner's first quarter 2021 results include $ 8.0 million in recapture of provision for credit losses , compared to $ 21.7 million in provision for credit losses in the first quarter of 2020. The first quarter 2020 provision for credit losses was primarily the result of the impact of the COVID - 19 pandemic . First quarter 2021 results also include $ 571,000 of merger and acquisition - related expenses , compared to $ 579,000 for the preceding quarter , and $ 1.1 million of merger and acquisition - related expenses for the first quarter of 2020 . Banner announced that its Board of Directors declared a regular quarterly cash dividend of $ 0.41 per share . The dividend will be payable May 14 , 2021 , to common shareholders of record on May 5 , 2021 . " Banner's core operating performance during the first quarter reflects the continued execution of our super community bank strategy , even with the challenges of the pandemic , " said Mark Grescovich , President and CEO . " We benefited from continued strong mortgage banking fee revenue , core deposit growth and the branch consolidations we completed during the prior quarter . Overall , we achieved a return on average assets of 1.24 % for the quarter . The unprecedented level of market liquidity along with our continued focus on building client relationships contributed to our core deposits increasing 36 % compared to March 31 , 2020 . " Due to an improvement in forecasted economic conditions , a decline in loan balances other than guaranteed SBA Paycheck Protection Program ( PPP ) loans , we recorded an $ 8.0 million recapture to our provision for credit losses during the current quarter . This compares to a $ 601,000 recapture to our provision for credit losses during the preceding quarter and a $ 21.7 million provision for credit losses in the first quarter a year ago . Our allowance for credit losses - loans remains strong at 1.57 % of total loans and 426 % of non - performing loans at March 31 , 2021 , compared to 1.69 % of total loans and 470 % of non - performing loans at December 31 , 2020 , " said Grescovich . " Banner has provided PPP loans totaling nearly $ 1.56 billion to 13,210 businesses as of March 31 , 2021. We continue to live by our core values : doing the right thing for our clients , communities , colleagues , company and shareholders , while providing a consistent and reliable source of capital through all economic cycles and changing events . " At March 31 , 2021 , Banner Corporation had $ 16.12 billion in assets , $ 9.79 billion in net loans and $ 13.55 billion in deposits . Banner operates 155 branch offices , including branches located in eight of the top 20 largest western Metropolitan Statistical Areas by population . COVID - 19 Pandemic Update • SBA Paycheck Protection Program . The U.S. Small Business Administration ( SBA ) provides assistance to small businesses impacted by COVID - 19 through the Paycheck Protection Program ( PPP ) , which was designed to provide near - term relief to help small businesses sustain operations . Under the initial PPP program , Banner funded 9,103 applications totaling $ 1.15 billion of loans in its service area . In January 2021 , Banner began accepting and processing loan applications under the second PPP program enacted in December 2020. As of March 31 , 2021 , Banner had funded 4,107 applications totaling $ 410.8 million of loans under the second PPP program . As of March 31 , 2021 , Banner had received SBA forgiveness for 1,255 PPP loans totaling $ 259.9 million . ⚫ Loan Accommodations . Banner is continuing to offer payment and financial relief programs for borrowers impacted by COVID - 19 . These programs include initial loan payment deferrals or interest - only payments for up to 90 days , waived late fees , and , on a more limited basis , waived interest and temporarily suspended foreclosure proceedings . Deferred loans are re - evaluated at the end of the initial deferral period and will either return to the original loan terms or may be eligible for an additional deferral period for up to 90 days . In addition , Banner has entered into payment forbearance agreements with other clients for periods of up to six months . At March 31 , 2021 , Banner had 91 loans totaling $ 33.9 million still on deferral . Of the loans still on deferral , 79 loans totaling $ 25.7 million are mortgage loans operating under forbearance agreements . Since these