# Banner Corporation: AI strategy

Source: https://www.bankingnewsai.com/banks/banner
Last updated: Oct 25, 2026

*A 135-year-old Northwest bank investing in 'digital platforms and AI capabilities', including a new loan and deposit origination system and a virtual assistant that customers can talk to 'like you would a person', while buying Bank of the Pacific.*

## How is Banner Bank using AI?

Banner Corporation, the Walla Walla, Washington parent of Banner Bank with $16.3 billion of assets and branches across Washington, Oregon, Idaho and California, discussed with investors in April 2026 its ongoing investments in digital platforms and AI capabilities, including a new loan and deposit origination system, and presented investment in digital infrastructure and talent as key to future competitiveness next to the core-deposit resilience and expense control that CEO Mark Grescovich credits for its results. The most visible AI-adjacent product is the Banner Virtual Assistant, available by phone and secure chat, which answers balance questions, moves money between accounts, troubleshoots debit cards and online banking, and transfers to a representative on request; customers are told to 'speak to the Virtual Assistant like you would a person'. Financially the second quarter of 2026 brought net income of $48.9 million, or $1.43 per diluted share, against $54.7 million in the first quarter and $45.5 million a year earlier, with net interest income of $153.7 million, a 4.13% tax-equivalent margin, revenue up 6% year on year to $172.0 million and a $0.52 dividend; first-half net income was $103.6 million, or $3.03 per share. On 30 April 2026 Banner agreed to buy Pacific Financial Corporation, parent of the $1.29 billion-asset Bank of the Pacific in Aberdeen, Washington, for about $177 million in stock, adding 18 branches and offices in Western Washington and Northern Oregon, immediately accretive to 2027 earnings; the deal closed on 1 September 2026, taking Banner to about $18 billion of assets, with systems integration planned for November. The AI record behind that is governance-first. Banner has run a Generative AI policy since 2023 ('2024 also marked the first full year' of it, per its corporate responsibility report), under which every proposed generative-AI use is vetted by an internal Fintech Council against strategy, risk appetite and data-security policies; the 2026 proxy describes it as a Board-approved policy on the responsible use of generative AI, and the board's nominating committee now looks for artificial-intelligence expertise, adding former Deloitte vice chairman Monica O'Reilly, an adviser on AI and cybersecurity, in March 2026. On the October 2025 call CFO Rob Butterfield said the bank had begun to 'turn on different AI features on existing software' while working on 'a longer-term strategic AI road map', and that it sees AI as 'a longer-term investment' rather than immediate cost reduction; in April 2026 he added that the new loan and deposit origination systems 'went fully live last year', and CEO Grescovich named BSA/AML and a 24/7 call centre as the kind of AI applications regional banks should be expected to invest in, while warning that banks must 'protect the data integrity of our clients'. The 2025 10-K adds an AI risk factor covering model risk, biased data, 'black-box' explainability, data poisoning, over-reliance on AI and disruptions to AI-supported fraud detection and transaction monitoring, and reports information and computer data services expense up 13% to $33.1 million, driven partly by the origination-system rollout. Open roles include a principal AI and cloud security engineer. Banner Bank is a Washington state nonmember bank supervised by the FDIC; no AI vendor, model or budget has been named.

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Banner Bank |
| Ticker | BANR |
| Headquarters | Walla Walla, WA |
| Consolidated assets | $16,586 million |
| Federal Reserve rank | 105 |
| Charter | Washington state nonmember bank (FDIC) |

## What AI partnerships and patents does Banner Bank have?

Glia is the only AI partner Banner has publicly tied to its operations: its AI assistants answer voice and digital client questions around the clock and hand off to staff. Banner has not named the vendor of its loan and deposit origination system, any model or cloud provider, or a fraud-detection supplier, and a Google Patents search under the assignee names Banner Bank, Banner Corp and Banner Financial returned no Banner filings. ([Glia](https://www.glia.com/news/glia-announces-2025-catalyst-awards-winners-celebrating-ai-driven-breakthroughs-in-community-banking), [Banner Bank](https://www.bannerbank.com/contact-us/banner-virtual-assistant), [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-corporation-q1-2026-shows-strong-earnings-beat-93CH-4633454))

| Item | What it is | Status | Date | Sources |
| --- | --- | --- | --- | --- |
| Glia | AI assistants for voice and digital channels in the client engagement center; 2025 Harmonizer Award | In production | 2025-10-14 | [Glia](https://www.glia.com/news/glia-announces-2025-catalyst-awards-winners-celebrating-ai-driven-breakthroughs-in-community-banking) |

## Flagship platform: Digital platform and AI capability investments; Banner Virtual Assistant

On its April 2026 earnings call Banner's management discussed 'ongoing investments in digital platforms and AI capabilities, including a new loan and deposit origination' system, alongside talent investment, as keys to future competitiveness; CEO Mark Grescovich credited 'a strong core deposit base', 'a very good net interest margin and core expense control'. Customers already interact with the Banner Virtual Assistant by phone or secure chat, which handles balance enquiries, transfers, debit-card and online-banking problems and hands off to a person on request, with identity verified through online-banking sign-in for chat. No AI vendor, model inventory or budget has been disclosed. ([StockStory (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html), [Banner Bank](https://www.bannerbank.com/contact-us/banner-virtual-assistant))

## Key points

- Management discussed ongoing investments in digital platforms and AI capabilities, including a new loan and deposit origination system (April 2026 call, per StockStory).
- Banner Virtual Assistant handles balances, transfers and troubleshooting by phone and chat, with handoff to staff.
- Q2 2026 net income $48.9 million ($1.43); NIM 4.13%; revenue $172.0 million (+6%); first-half net income $103.6 million ($3.03).
- Pacific Financial (Bank of the Pacific) acquisition agreed 30 April 2026: about $177 million in stock; 18 locations; closed 1 September 2026, combined assets about $18 billion; systems integration planned for November 2026.
- Generative AI policy since 2023, Board-approved, with every proposed Gen AI use vetted by an internal Fintech Council; the board now recruits for AI expertise (2026 proxy, corporate responsibility reports).
- Calls: AI switched on inside existing software, a longer-term strategic AI roadmap, AI seen as scalability rather than immediate cost cuts (Q3 2025); CEO cites BSA/AML and a 24/7 call centre as regional-bank AI uses (Q1 2026).
- 2025 10-K: AI risk factor (model risk, bias, black-box explainability, data poisoning); IT and data services expense up 13% to $33.1 million with the new origination system.
- Core deposit growth of $165 million in Q1 2026 and reduced reliance on brokered CDs.
- No AI vendor, model inventory or budget disclosed.
- Banner Virtual Assistant is "guided by artificial intelligence" to interpret requests, holds answers to hundreds of frequently asked questions and is available 24 hours a day; staff take over 7 a.m. to 7 p.m. PT on weekdays by phone (Banner Bank help page).
- Glia supplies the AI assistants on Banner's voice and digital channels; Glia gave Banner its 2025 Harmonizer Award, and client engagement center director Brenda Wilbur says they let the bank expand service hours without adding agent headcount (October 2025).
- On the Q3 2025 call CFO Rob Butterfield said Banner continues to invest in fraud-related technology because "our fraud costs outpace our credit losses", alongside the new origination system and an AI roadmap.
- Technology, operations and risk sit under COO Jim Costa since May 2024; Dan Oxford became Chief Risk Officer in October 2025 with Model Risk, Fraud, Financial Crimes (AML/BSA/OFAC) and Vendor Risk in his remit, and chairs the Risk Management Oversight Committee.
- Information and computer data services expense rose to $10.3 million in Q2 2026 from $8.2 million a year earlier ($18.6 million against $15.8 million for six months), mainly computer software, including a $924,000 write-off of the old commercial loan origination system (Q2 2026 10-Q and call).
- The Q2 2026 call and 10-Q add no new AI disclosure: the call focused on the origination system, which Butterfield said automates back-office processes and speeds deals through the pipeline, and the 10-Q mentions AI only in its list of forward-looking risk factors.

## Timeline

- Sep 1, 2026 — **Pacific Financial acquisition completed** Combined assets about $18 billion; systems integration planned for November. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000184/banrclosingpressrelease9-1.htm))
- Aug 4, 2026 — **Q2 2026 10-Q: IT and data services expense up 26%** Information and computer data services expense $10.3 million against $8.2 million a year earlier, mainly computer software; AI named only among forward-looking risk factors. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000172/banr-20260630.htm))
- Jul 23, 2026 — **Q2 2026 call: origination system, no AI discussion** Loan originations up 45% from Q1; $924,000 write-off of the previous commercial loan origination system; Butterfield credits the new system with automating back-office steps. ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-misses-q2-2026-estimates-as-shares-slip-93CH-4809573))
- Jul 22, 2026 — **Second-quarter 2026 results** Net income $48.9 million; NIM 4.13%; $0.52 dividend. ([Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-Reports-Net-Income-of-48-9-Million-or-1-43-Per-Diluted-Share-for-Second-Quarter-2026-Declares-Quarterly-Cash-Dividend-of-0-52-Per-Share))
- Jul 14, 2026 — **2025 corporate responsibility report: Gen AI policy and Fintech Council vetting** Approach maintained in 2025 as 'our internal use expands'. ([Banner Bank](https://www.bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/2025-corporate-responsibility-report.pdf?rev=306e470dcd7e4c149eba13a7496449aa&sc_lang=en&hash=27D60D9F813F59143BFA1C40256120EB))
- May 5, 2026 — **Q1 2026 10-Q: IT expense up 9% year on year** Information and computer data services expense $8.3 million against $7.6 million; AI again appears only as a forward-looking risk factor. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000127/banr-20260331.htm))
- Apr 30, 2026 — **Agreement to acquire Pacific Financial Corporation** About $177 million in stock; Bank of the Pacific's 18 locations. ([Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-to-Acquire-Pacific-Financial-Corporation), [American Banker](https://www.americanbanker.com/news/banner-to-buy-pacific-financial-boosting-presence-in-northwest))
- Apr 23, 2026 — **Q1 2026 call: digital platforms and AI capabilities** New loan and deposit origination system; talent investment; core deposits up $165 million. In Q&A the CFO describes a fintech council that evaluates AI and AI switched on within existing platforms; the CEO cites BSA/AML and the call centre as regional-bank AI uses. ([StockStory (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html), [The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q1-2026-earnings-164312890.html), [MarketBeat (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-q1-earnings-call-highlights-165038840.html))
- Apr 6, 2026 — **Proxy: Board-approved generative-AI policy** Nominating committee's board succession planning now includes AI expertise. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm))
- Mar 2, 2026 — **Monica O'Reilly and Judith Steiner join the board** Two new directors. ([Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Monica-OReilly-and-Judith-Steiner-Join-Banner-Corporation-Board-of-Directors), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000011/banr-ex991newdirectors2026.htm))
- Feb 25, 2026 — **2025 10-K: CIO and CISO lead cybersecurity risk management** Item 1C says the programme is led by the Chief Information Officer and Chief Information Security Officer (more than a decade at Banner, unnamed); the board Risk Committee oversees IT and cybersecurity. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm))
- Feb 25, 2026 — **2025 10-K: AI risk factor** Model risk, biased data, black-box explainability, data poisoning and over-reliance on AI; generative and agentic AI named as competitive threats; origination system implemented during 2025. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm))
- Jan 22, 2026 — **Q4 2025 call: origination system fully rolled out** Butterfield says IT expenses rose as the new loan and deposit origination system was fully rolled out early in the fourth quarter. ([The Motley Fool](https://fool.com/earnings/call-transcripts/2026/04/21/banner-banr-q4-2025-earnings-call-transcript))
- Nov 4, 2025 — **Q3 2025 10-Q: AI in the forward-looking risk factors** Lists the ability to adapt to rapid technological change, including advancements in artificial intelligence, digital banking and cybersecurity. ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667325000088/banr-20250930.htm))
- Oct 16, 2025 — **Q3 2025 call: governance first, then a strategic AI roadmap** Origination system's first modules live, the rest due in Q4; AI features being turned on in existing software; AI treated as a longer-term scalability investment, not an immediate cost cut. ([The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q3-2025-earnings-164358892.html))
- Oct 14, 2025 — **Glia award for AI assistants** Glia gave Banner its 2025 Harmonizer Award for unifying voice and digital service with AI agents that extend hours and hand off smoothly to human staff. ([Glia](https://www.glia.com/news/glia-announces-2025-catalyst-awards-winners-celebrating-ai-driven-breakthroughs-in-community-banking))
- Oct 1, 2025 — **Dan Oxford becomes Chief Risk Officer** Remit covers Enterprise, Model, Climate and Vendor Risk, Compliance, Financial Crimes (AML/BSA/OFAC), Fraud, Appraisal and Credit Review; the post was previously held by COO Jim Costa. The release gives the month only. ([Banner Bank](https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer))
- Sep 3, 2025 — **Millicent Tracey joins the board** Board refresh. ([Banner Corporation](https://investor.bannerbank.com/news/news-details/2025/Millicent-Tracey-Joins-Banner-Corporation-Board-of-Directors))
- Jul 17, 2025 — **Q2 2025 call: origination modules to go live in the second half** CFO Rob Butterfield expects IT expenses to rise as modules of the new deposit and loan origination system go live, partly offset over time by back-office space consolidation. ([The Motley Fool](https://fool.com/earnings/call-transcripts/2026/04/22/banner-banr-q2-2025-earnings-transcript))
- Jun 24, 2025 — **2024 corporate responsibility report** Governance and community disclosures. ([Banner Bank](https://bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/banner-bank-cr-report.pdf?hash=EA2EA119CE34A25FB9880D8A8E6904BB&rev=9cab54a993c14518a2ee643d1a805a11))
- Dec 31, 2024 — **First full year of the Generative AI policy** Proposed Gen AI uses vetted by the Fintech Council; process refined to 'better facilitate innovation in day-to-day work'. ([Banner Bank](https://bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/banner-bank-cr-report.pdf?hash=EA2EA119CE34A25FB9880D8A8E6904BB&rev=9cab54a993c14518a2ee643d1a805a11))
- May 29, 2024 — **Technology, operations and risk placed under a new COO** Jim Costa, already Chief Risk Officer, becomes Chief Operating Officer; CEO Mark Grescovich says bringing together the technology, operations and risk teams will create synergies. ([Banner Bank](https://www.bannerbank.com/about-us/news/jim-costa-promoted-to-expanded-role-including-chief-operating-officer))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots) | Banner Virtual Assistant | In production | Conversational phone and chat assistant for account servicing with human handoff. | [Banner Bank](https://www.bannerbank.com/contact-us/banner-virtual-assistant) |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | New loan and deposit origination system | In production | Part of digital-platform and AI-capability investment; implemented during 2025 and fully live by year-end. | [StockStory (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm), [The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q1-2026-earnings-164312890.html) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Bank of the Pacific integration | Rolling out | 18 locations to be converted after a Q3 2026 close; the deal closed on 1 September 2026 and systems integration is planned for November. | [Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-to-Acquire-Pacific-Financial-Corporation), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000184/banrclosingpressrelease9-1.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Generative AI policy and Fintech Council vetting | In production | Board-approved policy since 2023; every proposed Gen AI application is vetted by the Fintech Council against strategic priorities, values, risk appetite and data-security policies. | [Banner Bank](https://bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/banner-bank-cr-report.pdf?hash=EA2EA119CE34A25FB9880D8A8E6904BB&rev=9cab54a993c14518a2ee643d1a805a11), [Banner Bank](https://www.bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/2025-corporate-responsibility-report.pdf?rev=306e470dcd7e4c149eba13a7496449aa&sc_lang=en&hash=27D60D9F813F59143BFA1C40256120EB), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | AI features turned on in existing software | In production | Banner's first AI adoption is enabling AI inside software platforms it already runs, alongside a longer-term strategic AI roadmap. | [The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q3-2025-earnings-164358892.html), [The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q1-2026-earnings-164312890.html) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk-factor disclosure | In production | The 10-K flags model risk, biased data, black-box explainability, data poisoning and disruption to AI-supported fraud detection, transaction monitoring and client support. | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm) |
| [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots) | Glia AI assistants in the client engagement center | In production | Glia AI assistants on voice and digital channels answer basic client questions 24/7 and hand off to staff; client engagement center director Brenda Wilbur says they let Banner 'expand our service hours without increasing agent headcount'. | [Glia](https://www.glia.com/news/glia-announces-2025-catalyst-awards-winners-celebrating-ai-driven-breakthroughs-in-community-banking) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | Fraud-related technology investment | Rolling out | CFO Rob Butterfield said in October 2025 that fraud costs outpace credit losses and that Banner keeps investing in fraud-related technology; the 10-K warns that AI disruptions could affect AI-supported fraud detection and transaction monitoring. No fraud vendor or model is named. | [The Motley Fool](https://fool.com/earnings/call-transcripts/2026/04/22/banner-banr-q3-2025-earnings-call-transcript), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | BSA/AML as a named AI use | Announced | CEO Mark Grescovich named BSA/AML tools as an example of where regional banks will invest in AI in April 2026; financial crimes (AML/BSA/OFAC) reports to the Chief Risk Officer. No product is named. | [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-corporation-q1-2026-shows-strong-earnings-beat-93CH-4633454), [Banner Bank](https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | Model Risk team under the Chief Risk Officer | In production | The Model Risk function sits in Dan Oxford's remit with Enterprise Risk, Compliance, Fraud and Vendor Risk, reporting to the board Risk Committee and the COO; the Risk Committee oversees IT and cybersecurity. | [Banner Bank](https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm) |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | CIO- and CISO-led information security programme | In production | The cybersecurity programme is led by CIO Janet Brown and a Chief Information Security Officer (unnamed, more than a decade at Banner), with vendor risk oversight through due diligence, and the 10-K lists data poisoning and adversarial attacks among AI risks. | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Vendor Risk team and third-party RFP questions | In production | Vendor Risk reports to the Chief Risk Officer; Banner's 2024 request-for-proposal rounds added questions on corporate responsibility and ethical practices. | [Banner Bank](https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer), [Banner Bank](https://bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/banner-bank-cr-report.pdf?hash=EA2EA119CE34A25FB9880D8A8E6904BB&rev=9cab54a993c14518a2ee643d1a805a11) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Q2 2026 net income / diluted EPS | $48.9 million / $1.43 | Jul 22, 2026 | [Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-Reports-Net-Income-of-48-9-Million-or-1-43-Per-Diluted-Share-for-Second-Quarter-2026-Declares-Quarterly-Cash-Dividend-of-0-52-Per-Share) |
| Net interest margin / revenue, Q2 2026 | 4.13% / $172.0 million | Jul 22, 2026 | [Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-Reports-Net-Income-of-48-9-Million-or-1-43-Per-Diluted-Share-for-Second-Quarter-2026-Declares-Quarterly-Cash-Dividend-of-0-52-Per-Share) |
| Pacific Financial acquisition | ≈ $177 million in stock; $1.29 billion assets | Apr 30, 2026 | [American Banker](https://www.americanbanker.com/news/banner-to-buy-pacific-financial-boosting-presence-in-northwest), [Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-to-Acquire-Pacific-Financial-Corporation) |
| Core deposit growth, Q1 2026 | $165 million | Apr 22, 2026 | [StockStory (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html) |
| Information and computer data services expense, 2025 | $33.1 million (+13% from $29.2 million) | Dec 31, 2025 | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm) |
| Combined assets after Pacific Financial close | ≈ $18 billion | Sep 1, 2026 | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000184/banrclosingpressrelease9-1.htm) |
| Information and computer data services expense, Q2 2026 | $10.3 million (Q2 2025: $8.2 million) | Jun 30, 2026 | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000172/banr-20260630.htm) |
| Information and computer data services expense, first half 2026 | $18.6 million (first half 2025: $15.8 million) | Jun 30, 2026 | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000172/banr-20260630.htm) |
| Information and computer data services expense, Q1 2026 | $8.3 million (Q1 2025: $7.6 million) | Mar 31, 2026 | [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000127/banr-20260331.htm) |
| Write-off of the previous commercial loan origination system, Q2 2026 | $924,000 | Jul 23, 2026 | [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-misses-q2-2026-estimates-as-shares-slip-93CH-4809573) |
| Loan originations, Q2 2026 against Q1 2026 | +45% (commercial +85%, construction +73%) | Jul 23, 2026 | [Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-misses-q2-2026-estimates-as-shares-slip-93CH-4809573) |
| Banner Virtual Assistant availability | 24 hours a day, 7 days a week; staff 7 a.m. to 7 p.m. PT weekdays by phone | Sep 24, 2026 | [Banner Bank](https://www.bannerbank.com/contact-us/banner-virtual-assistant) |

## Quotes

> "Bank of the Pacific is a highly-respected, financially strong community bank with exceptional core deposits, and we're pleased they selected Banner as their merger partner." — Mark J. Grescovich, President and CEO, Apr 30, 2026 ([Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-to-Acquire-Pacific-Financial-Corporation))

> "But when we think about AI, we don't think about it as immediate cost reductions. We think about AI as being a longer-term investment that will give the scalability to the organization." — Robert Butterfield, Executive Vice President and Chief Financial Officer, Oct 16, 2025 ([The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q3-2025-earnings-164358892.html))

> "Examples of AI applications would be in BSA/AML, where you can really utilize some of the tools, and in the call center, which can allow you to be more responsive to your client base over a 24/7 period." — Mark J. Grescovich, President and CEO, Apr 23, 2026 ([The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q1-2026-earnings-164312890.html))

> "Monica’s distinguished background advising Fortune 500 boards on regulatory compliance, cybersecurity and artificial intelligence, alongside Judy’s significant expertise in legal, risk and compliance, collectively strengthens our Board in meaningful ways." — Mark J. Grescovich, President and CEO, Mar 2, 2026 ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000011/banr-ex991newdirectors2026.htm))

> "Speak to the Virtual Assistant like you would a person. Use short sentences to explain what you need, rather than keywords." — Banner Bank, Virtual Assistant guidance, Sep 24, 2026 ([Banner Bank](https://www.bannerbank.com/contact-us/banner-virtual-assistant))

> "Other areas that we continue to invest in is fraud-related technology, which, I mean, we've talked about multiple times that our fraud costs outpace our credit losses." — Robert Butterfield, Executive Vice President and Chief Financial Officer, Oct 16, 2025 ([The Motley Fool](https://fool.com/earnings/call-transcripts/2026/04/22/banner-banr-q3-2025-earnings-call-transcript))

> "We have started to adopt some AI technology. At this point, it's more turning on AI within existing software platforms." — Rob Butterfield, Chief Financial Officer, Apr 23, 2026 ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-corporation-q1-2026-shows-strong-earnings-beat-93CH-4633454))

> "When you think about AI, regional banks like us, we want to be very cautious and make sure that we're protecting the data integrity of our clients." — Mark Grescovich, President and Chief Executive Officer, Apr 23, 2026 ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-corporation-q1-2026-shows-strong-earnings-beat-93CH-4633454))

> "We've been able to expand our service hours without increasing agent headcount." — Brenda Wilbur, Senior Vice President and Client Engagement Center Director, Oct 14, 2025 ([Glia](https://www.glia.com/news/glia-announces-2025-catalyst-awards-winners-celebrating-ai-driven-breakthroughs-in-community-banking))

> "It really automates a lot of the processes and allows the time it takes a deal to get through the system from start to finish." — Rob Butterfield, Chief Financial Officer, Jul 23, 2026 ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-banner-misses-q2-2026-estimates-as-shares-slip-93CH-4809573))

## Who runs AI

- **Mark J. Grescovich** — President and CEO ([LinkedIn](https://www.linkedin.com/in/mark-grescovich-96208417)) ([Banner Corporation](https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-to-Acquire-Pacific-Financial-Corporation), [StockStory (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html))
- **Rob Butterfield** — Chief Financial Officer ([LinkedIn](https://www.linkedin.com/in/rob-butterfield-cpa-97554b25)) ([StockStory (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html), [The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q3-2025-earnings-164358892.html), [The Motley Fool (Yahoo Finance)](https://finance.yahoo.com/markets/stocks/articles/banner-banr-q1-2026-earnings-164312890.html))
- **Janet M. Brown** — Executive Vice President, Chief Information Officer (since 2020) ([LinkedIn](https://www.linkedin.com/in/janet-brown-8252b12)) ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm))
- **Cynthia D. Purcell** — Executive Vice President, Chief Strategy and Administration Officer (digital strategy and delivery channels) ([LinkedIn](https://www.linkedin.com/in/cindy-purcell-80b16047)) ([Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm))
- **James M. (Jim) Costa** — Executive Vice President, Chief Operating Officer (technology, operations and risk teams brought together under him in May 2024; Chief Risk Officer until October 2025) ([Banner Bank](https://www.bannerbank.com/about-us/news/jim-costa-promoted-to-expanded-role-including-chief-operating-officer), [Banner Bank](https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm))
- **Dan Oxford** — Executive Vice President, Chief Risk Officer (since October 2025; Model Risk, Fraud, Financial Crimes, Vendor Risk and Compliance; chairs the Risk Management Oversight Committee) ([Banner Bank](https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer), [Banner Corporation (SEC filings)](https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm))

## Open AI roles

Data as of Oct 25, 2026 (2026-10-25) · read from the bank's own careers site, re-checked weekly.

1 open AI-related posting on [the careers site](https://jobs.lever.co/bannerbank) as of Oct 25, 2026. A snapshot of current openings, not a source: postings close.

- [Principal AI & Cloud Security Engineer (Remote only within WA, ID, OR)](https://jobs.lever.co/bannerbank/4bc1cda5-7757-4710-bb1e-4a423e656743) — Washington — posted Jul 22, 2026

## Which AI vendors and fintechs does Banner Bank work with?

| Company | What Banner Bank uses it for | Status | Category |
| --- | --- | --- | --- |
| [Glia](https://www.bankingnewsai.com/vendors/glia) | Glia AI assistants on voice and digital channels in Banner's client engagement center, extending service hours with hand-offs to human staff; winner of Glia's 2025 Harmonizer Award. | In production | [Conversational AI](https://www.bankingnewsai.com/ai-tools/conversational-ai) |

Each vendor and fintech page cites the source for the relationship. [AI tools for banks](https://www.bankingnewsai.com/ai-tools) · [fintech and neobank AI dossiers](https://www.bankingnewsai.com/fintech).

## Regulators it answers to

- [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) — Banner Bank is a state nonmember bank; FDIC model-risk and third-party guidance govern the origination system and virtual assistant. See [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023), [FDIC FIL-15-2026](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-15-2026).
- [CFPB](https://www.bankingnewsai.com/ai-regulation/cfpb) — A customer-facing virtual assistant and automated origination fall under CFPB chatbot guidance and adverse-action rules. See [CFPB Chatbots in Consumer Finance (issue spotlight, 2023)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-chatbots-in-consumer-finance-2023), [ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-ecoa-regulation-b-adverse-action).
- [State of California](https://www.bankingnewsai.com/ai-regulation/california) — California branches bring the state's automated-decision and privacy rules into scope. See [CPPA ADMT, risk-assessment and cybersecurity-audit regulations](https://www.bankingnewsai.com/ai-regulation/documents/ca-cppa-admt-risk-cyber-regulations-2025).

## What the record suggests

### Origination systems are where AI enters credit

A new loan and deposit origination platform is the point at which decisioning models get embedded; the governance file should be built now.

### The virtual assistant is already a CFPB matter

Conversational servicing with identity verification sits inside chatbot guidance; escalation and complaint metrics should be tracked.

### Merger conversion will compete for the same team

Integrating Bank of the Pacific in late 2026 will pull technology capacity from the AI roadmap; sequence deliberately.

### Name the capabilities

'AI capabilities' in a call is a start; investors will want the use cases and expected efficiency effect.

## FAQ

### Does Banner Bank use AI?

Banner says it is investing in digital platforms and AI capabilities, including a new loan and deposit origination system, and operates a conversational Banner Virtual Assistant for account servicing by phone and chat. It governs generative AI through a Board-approved policy under which an internal Fintech Council vets every proposed use, and says it has begun by turning on AI features in existing software. No vendor, model or budget has been disclosed.

### What is Banner acquiring?

Pacific Financial Corporation, parent of Bank of the Pacific in Aberdeen, Washington, with $1.29 billion of assets and 18 locations in Western Washington and Northern Oregon, for about $177 million in stock. The deal, announced 30 April 2026, closed on 1 September 2026, creating a bank of about $18 billion in assets; systems integration is planned for November.

### Who leads AI at Banner Bank?

Banner has not named a head of AI, chief AI officer or chief data officer. Generative-AI use is vetted by an internal Fintech Council, which CFO Rob Butterfield described on the April 2026 call, under a Board-approved policy. Janet Brown, Chief Information Officer since 2020, directs IT and security; Jim Costa, Chief Operating Officer since May 2024, oversees technology, operations and risk teams; Dan Oxford, Chief Risk Officer since October 2025, owns Model Risk, Fraud and Vendor Risk; Brenda Wilbur runs the client engagement center that uses Glia AI assistants. CEO Mark Grescovich frames AI as cautious, data-protective investment.

### Which AI vendors does Banner Bank use?

Glia is the only AI vendor Banner has publicly tied to its operations: its AI assistants handle voice and digital client questions around the clock and hand off to staff, and Glia gave Banner its 2025 Harmonizer Award in October 2025. Banner has not named the vendor of its new loan and deposit origination system, a cloud or model provider, or a fraud-detection supplier, and no Banner-assigned AI patents turned up in a Google Patents search.

### Did Banner Bank discuss AI on its second-quarter 2026 earnings call?

Not in the transcript reviewed. The 23 July 2026 call focused on loan originations, which rose 45% from the first quarter, the Bank of the Pacific merger and expenses, including a $924,000 write-off of the old commercial loan origination system. The Q2 10-Q, filed 4 August 2026, names AI only in its forward-looking risk factors. AI strategy remarks came on the October 2025 and April 2026 calls, when management described a Fintech Council, AI switched on within existing software and a longer-term AI roadmap.

## Sources (27)

1. Corporate Responsibility Report 2024 — Banner Bank, Jun 24, 2025. https://bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/banner-bank-cr-report.pdf?hash=EA2EA119CE34A25FB9880D8A8E6904BB&rev=9cab54a993c14518a2ee643d1a805a11
2. BANR Q1 Deep Dive: Deposit Growth, Margin Resilience, and Strategic Positioning — StockStory (Yahoo Finance), Apr 23, 2026. https://finance.yahoo.com/markets/stocks/articles/banr-q1-deep-dive-deposit-084523380.html
3. Banner Corporation to Acquire Pacific Financial Corporation — Banner Corporation, Apr 30, 2026. https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-to-Acquire-Pacific-Financial-Corporation
4. Banner to buy Pacific Financial, boosting presence in Northwest — American Banker, May 1, 2026. https://www.americanbanker.com/news/banner-to-buy-pacific-financial-boosting-presence-in-northwest
5. Banner Virtual Assistant — Banner Bank, Sep 24, 2026. https://www.bannerbank.com/contact-us/banner-virtual-assistant
6. Banner Corporation Reports Net Income of $48.9 Million, or $1.43 Per Diluted Share, for Second Quarter 2026 — Banner Corporation, Jul 22, 2026. https://investor.bannerbank.com/news/news-details/2026/Banner-Corporation-Reports-Net-Income-of-48-9-Million-or-1-43-Per-Diluted-Share-for-Second-Quarter-2026-Declares-Quarterly-Cash-Dividend-of-0-52-Per-Share
7. Millicent Tracey Joins Banner Corporation Board of Directors — Banner Corporation, Sep 3, 2025. https://investor.bannerbank.com/news/news-details/2025/Millicent-Tracey-Joins-Banner-Corporation-Board-of-Directors
8. Banner Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2025 — Banner Corporation (SEC filings), Feb 25, 2026. https://www.sec.gov/Archives/edgar/data/946673/000094667326000009/banr-20251231.htm
9. Banner Corporation 2026 Proxy Statement (Schedule 14A) — Banner Corporation (SEC filings), Apr 6, 2026. https://www.sec.gov/Archives/edgar/data/946673/000094667326000114/banr-20260330.htm
10. Monica O’Reilly and Judith Steiner Join Banner Corporation Board of Directors (Form 8-K, Exhibit 99.1) — Banner Corporation (SEC filings), Mar 2, 2026. https://www.sec.gov/Archives/edgar/data/946673/000094667326000011/banr-ex991newdirectors2026.htm
11. Banner Corporation Completes Acquisition of Pacific Financial Corporation (Form 8-K, Exhibit 99.1) — Banner Corporation (SEC filings), Sep 1, 2026. https://www.sec.gov/Archives/edgar/data/946673/000094667326000184/banrclosingpressrelease9-1.htm
12. Banner (BANR) Q3 2025 Earnings Call Transcript — The Motley Fool (Yahoo Finance), Apr 22, 2026. https://finance.yahoo.com/markets/stocks/articles/banner-banr-q3-2025-earnings-164358892.html
13. Banner (BANR) Q1 2026 Earnings Call Transcript — The Motley Fool (Yahoo Finance), Apr 23, 2026. https://finance.yahoo.com/markets/stocks/articles/banner-banr-q1-2026-earnings-164312890.html
14. Banner Q1 Earnings Call Highlights — MarketBeat (Yahoo Finance), Apr 23, 2026. https://finance.yahoo.com/markets/stocks/articles/banner-q1-earnings-call-highlights-165038840.html
15. Corporate Responsibility Report 2025 — Banner Bank, Jul 14, 2026. https://www.bannerbank.com/-/media/project/banner-bank/dotcom/pdfs/2025-corporate-responsibility-report.pdf?rev=306e470dcd7e4c149eba13a7496449aa&sc_lang=en&hash=27D60D9F813F59143BFA1C40256120EB
16. Monica O'Reilly and Judith Steiner Join Banner Corporation Board of Directors — Banner Corporation, Mar 2, 2026. https://investor.bannerbank.com/news/news-details/2026/Monica-OReilly-and-Judith-Steiner-Join-Banner-Corporation-Board-of-Directors
17. Glia Announces 2025 Catalyst Awards Winners, Celebrating AI-Driven Breakthroughs in Community Banking — Glia, Oct 14, 2025. https://www.glia.com/news/glia-announces-2025-catalyst-awards-winners-celebrating-ai-driven-breakthroughs-in-community-banking
18. Jim Costa promoted to expanded role including Chief Operating Officer — Banner Bank, May 29, 2024. https://www.bannerbank.com/about-us/news/jim-costa-promoted-to-expanded-role-including-chief-operating-officer
19. Dan Oxford Promoted to Executive Vice President and Chief Risk Officer — Banner Bank, Oct 1, 2025. https://www.bannerbank.com/about-us/news/dan-oxford-promoted-to-executive-vice-president-and-chief-risk-officer
20. Banner (BANR) Q2 2025 Earnings Transcript — The Motley Fool, Apr 22, 2026. https://fool.com/earnings/call-transcripts/2026/04/22/banner-banr-q2-2025-earnings-transcript
21. Banner (BANR) Q3 2025 Earnings Call Transcript — The Motley Fool, Apr 22, 2026. https://fool.com/earnings/call-transcripts/2026/04/22/banner-banr-q3-2025-earnings-call-transcript
22. Banner (BANR) Q4 2025 Earnings Call Transcript — The Motley Fool, Apr 21, 2026. https://fool.com/earnings/call-transcripts/2026/04/21/banner-banr-q4-2025-earnings-call-transcript
23. Earnings call transcript: Banner Corporation Q1 2026 shows strong earnings beat — Investing.com, Apr 23, 2026. https://investing.com/news/transcripts/earnings-call-transcript-banner-corporation-q1-2026-shows-strong-earnings-beat-93CH-4633454
24. Earnings call transcript: Banner misses Q2 2026 estimates as shares slip — Investing.com, Jul 23, 2026. https://investing.com/news/transcripts/earnings-call-transcript-banner-misses-q2-2026-estimates-as-shares-slip-93CH-4809573
25. Banner Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 — Banner Corporation (SEC filings), Nov 4, 2025. https://www.sec.gov/Archives/edgar/data/946673/000094667325000088/banr-20250930.htm
26. Banner Corporation Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 — Banner Corporation (SEC filings), May 5, 2026. https://www.sec.gov/Archives/edgar/data/946673/000094667326000127/banr-20260331.htm
27. Banner Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 — Banner Corporation (SEC filings), Aug 4, 2026. https://www.sec.gov/Archives/edgar/data/946673/000094667326000172/banr-20260630.htm

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