Banner Corporation and Banner Bank announced that Peter J. Conner had informed the Company of his intention to retire from his position as Executive Vice President of the Company, effective October 10, 2023. Mr. Conner will also be retiring from his position as Executive Vice President of the Bank, effective April 10, 2023. His planned departure is not a result of any disagreement regarding the Company's financial statements or disclosure.

Mr. Conner joined the Bank as Chief Financial Officer in 2015 as part of the AmericanWest Bank acquisition. He began his banking career in 1989 and progressed through several leadership positions with a variety of money center and community banks prior to joining the Bank as Chief Financial Officer. As part of Mr. Conner's retirement, the Company, the Bank and Mr. Conner will enter into a Separation and Release Agreement (“Agreement”), which is anticipated to be signed on or before April 19, 2023 and it will become effective seven days after signing.

Pursuant to the terms of the Agreement, Mr. Conner will continue to be employed as Executive Vice President and Chief Financial Officer of the Company and the Bank until April 10, 2023, at which time he will retire from his position as Executive Vice President and Chief Financial Officer of the Bank. On October 10, 2023 (the “Retirement Date”), Mr. Conner will also retire from his position as Executive Vice and Chief Financial Officer of the Company. The period of time between the signing of the Agreement and the Retirement Date is referred to as the “Notice Period.” During the Notice Period, Mr. Conner will continue to receive the same pay and benefits he is currently entitled to.

Mr. Conner's last day of work will be April 10, 2024. The period of time between the end of the Notice Period and the Separation Date is referred to as the “Transition Period.” During the Transition Period, Mr. Conner will continue to work for the Company on a reduced schedule in a new role as special advisor to the Chief Executive Officer until April 10, 2024. In this role, Mr. Conner will receive a base salary equivalent to 50% of his base salary in effect as of the last day of the Notice Period and he will be entitled to certain specified executive perquisites as set forth in the Agreement.

All pay and benefits under any of Banner's plans, policies or programs, will end as of the Separation Date unless extended by Mr. Conner pursuant to the terms of the relevant plans or specifically set forth in the Agreement. Effective April 11, 2023, Robert G. Butterfield, age 54, currently serving as Senior Vice President and Chief Accounting Officer of the Bank, will succeed Mr. Conner, by being promoted to the position of Executive Vice President of the Bank. On that date, Mr. Butterfield will also replace Mr. Conner as a member of the Bank's Executive Management Committee.

Mr. Butterfield will continue to report to Mr. Conner to support a smooth transition and will be appointed as Executive Vice President of the Company on October 11, 2023, at which time he will begin reporting to Mark J. Grescovich, President and Chief Executive Officer. Mr. Butterfield is based in Spokane, Washington. Prior to joining the Bank, Mr. Butterfield was Senior Vice President, Controller and Principal Accounting Officer at Sterling Savings Bank from October 2001 through April 2014 and was Senior Vice President and Controller at Umpqua Bank from April 2014, all in the Spokane, Washington area, until he joined the Bank as Chief Accounting Officer in September 2015.

Mr. Butterfield is a Certified Public Accountant and has more than 26 years of highly specialized financial expertise, including 22 years in the financial services industry. He began his career as an auditor with BDO USA, LLP. He earned a B.A. in Accounting from Eastern Washington University and is a graduate of the Pacific Coast Banking School.