Discuss how results of mandatory and voluntary stress tests and capital planning reports inform your decisions and are incorporated into capital planning, long-term corporate strategy, and other business activities |
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Banner Corporation, the parent company of Banner Bank, performs enterprise-wide stress testing. This is an internal exercise forecasting the balance sheet, income statement and capital ratios of both Banner Bank and Banner Corporation under a selected set of hypothetical macro-economic and/or bank-specific scenarios over a 10-quarter time horizon. The company forecasts capital actions in each of these scenarios based on financial results and our Capital Policy, which includes target operating limits and a series of thresholds for each key capital ratio metric. Enterprise-wide stress testing is performed at least annually. The results are used to inform the Board of Directors' decision to approve the (annual) Capital Plan and are also incorporated into the Board's Risk Appetite Statement. The enterprise-wide stress testing process is governed by key policies and internal governance bodies including the Capital Stress Testing Committee, the Risk Management Oversight Committee and the Board of Directors. These groups are responsible for governance as well as effective challenge. |
Discuss how the stress test results inform your approach with respect to environmental, social, and governance (ESG) strategy |
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Not Disclosed |
Disclose your stress test results |
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Not Disclosed |