Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1c · Fundraising events

  $1,119,158

• 1e · Government grants (contributions)

  $6,533

• 1f · All other contributions, gifts and grants

  $27,369,229

• 1g · Noncash contributions included above

  $767,623

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $1,375,645 · excluded $1,375,645

• 6c · Rental income or loss

  real property $0 · personal property $0

• 7a · Gross sales of assets other than inventory

  securities $549,888

• 7c · Gain or loss

  securities $549,888 · other assets $0

• 7d · Net gain or loss

  total $549,888 · excluded $549,888

• 8a · Fundraising events: gross income

  $287,192

• 8a · Fundraising events: contributions included on line 1c

  $1,119,158

• 8b · Fundraising events: direct expenses

  $582,086

• 8c · Net income from fundraising events

  total -$294,894 · excluded -$294,894

• 11a · Other revenue: Miscellaneous Revenue

  total $1,214 · related or exempt $1,214

• 11d · All other revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $1,214

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $16,057,575 · program services $16,057,575

• 2 · Grants to domestic individuals

  total $598,186 · program services $598,186

• 5 · Compensation of officers, directors and key employees

  total $2,138,829 · program services $1,711,063 · management and general $427,766

• 7 · Other salaries and wages

  total $1,821,786 · program services $1,457,429 · management and general $364,357

• 8 · Pension plan contributions

  total $197,582 · program services $158,066 · management and general $39,516

• 9 · Other employee benefits

  total $258,241 · program services $206,592 · management and general $51,649

• 10 · Payroll taxes

  total $222,865 · program services $178,292 · management and general $44,573

• 11c · Fees: accounting

  total $50,412 · program services $40,330 · management and general $10,082

• 11e · Fees: professional fundraising services

  total $213,717 · fundraising $213,717

• 11g · Fees: other

  total $432,525 · program services $346,020 · management and general $86,505 · fundraising $0

• 12 · Advertising and promotion

  total $16,582 · program services $8,354 · management and general $2,088 · fundraising $6,140

• 13 · Office expenses

  total $149,848 · program services $119,878 · management and general $29,970

• 14 · Information technology

  total $6,930 · program services $5,544 · management and general $1,386

• 17 · Travel

  total $17,628 · program services $4,147 · management and general $1,036 · fundraising $12,445

• 19 · Conferences, conventions and meetings

  total $7,060 · program services $5,648 · management and general $1,412

• 20 · Interest

  total -$98,323 · program services -$78,659 · management and general -$19,664

• 24a · Other expenses: Intercompany Charges

  total $187,899 · program services $150,319 · management and general $37,580

• 24b · Other expenses: Repair & Maintenance

  total $137,927 · program services $110,342 · management and general $27,585

• 24c · Other expenses: Taxes

  total $12,614 · program services $10,091 · management and general $2,523

• 24d · Other expenses: Dues and Subscriptions

  total $7,553 · program services $6,042 · management and general $1,511

• 24e · All other expenses

  total $229,020 · program services $183,216 · management and general $45,804 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $6,370,956 · end of year $10,124,390

• 2 · Savings and temporary cash investments

  beginning of year $483,314 · end of year $513,841

• 3 · Pledges and grants receivable

  beginning of year $9,643,738 · end of year $15,731,769

• 4 · Accounts receivable

  beginning of year $0 · end of year $0

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $0 · end of year $0

• 9 · Prepaid expenses and deferred charges

  beginning of year $0 · end of year $0

• 10a · Land, buildings and equipment: cost or other basis

  $0

• 10b · Land, buildings and equipment: accumulated depreciation

  $0

• 10c · Land, buildings and equipment, net

  beginning of year $0 · end of year $0

• 11 · Investments: publicly traded securities

  beginning of year $125,188,516 · end of year $117,643,573

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $0 · end of year $0

• 15 · Other assets

  beginning of year -$2,919,596 · end of year $60,718

• 17 · Accounts payable and accrued expenses

  beginning of year $250,601 · end of year $161,996

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $0 · end of year $0

• 20 · Tax-exempt bond liabilities

  beginning of year $0 · end of year $0

• 21 · Escrow or custodial account liability

  beginning of year $0 · end of year $0

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $0 · end of year $0

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $502,804 · end of year $5,818,398

• 27 · Net assets without donor restrictions

  beginning of year $37,552,272 · end of year $23,218,952

• 28 · Net assets with donor restrictions

  beginning of year $87,399,710 · end of year $100,461,251

• 31 · Retained earnings, endowment or other funds

  beginning of year $13,061,541 · end of year $14,413,694

The filer's explanations (Part III)

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

EXEC 457(B) - COVERED APPROXIMATELY 423 FORMER AND CURRENT EXECUTIVES. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS AND IS 100% VESTED. TAXATION OCCURS UPON DISTRIBUTION. THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. CONTRIBUTIONS ARE CALCULATED BASED ON ACTUARIALLY DETERMINED FACTORS. EMPLOYER CONTRIBUTIONS TO EXEC 457(B) ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III). EXEC 457(F) - COVERED APPROXIMATELY 109 FORMER AND CURRENT EXECUTIVES. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS. VESTING OCCURS UPON MEETING VESTING REQUIREMENTS (SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE) - EARLIER OF AGE 62, 5 YEARS FROM DATE OF DEPOSIT, OR RULE OF 80. TAXATION OCCURS UPON DISTRIBUTION (IF VESTED). THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. PAYOUT AMOUNTS ARE TAXABLE AND INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III). DEPOSIT AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). 2022 457(F) Distributions: Andrea Petersen $26,050 Shiva Birdi $29,241 2022 457(F) Contributions: Andrea Petersen $28,627 Shiva Birdi $22,414

Schedule J, Part I, Line 7 Non-fixed payments

1. THE INDIVIDUALS IDENTIFIED BELOW PARTICIPATE IN A LONG-TERM INCENTIVE PLAN (LTIP) COVERING THREE-YEAR CYCLES FROM 2019-2021, 2020-2022, 2021-2023, AND 2022-2024. THE LTIP WAS DESIGNED AT THE INITIATIVE OF THE BANNER BOARD OF DIRECTORS WITH THE ASSISTANCE OF WILLIS TOWERS WATSON, AND ALL COMPONENTS WERE APPROVED BY THE BOARD. THE PLANS' AREAS OF PERFORMANCE TARGETS INCLUDE: Starts Rating improvement, Transform Revenue Cycle ($ improvement), and Build Our Bench to Reflect Communities (VOICE, Minority %, Succession. AWARDS ARE CALCULATED AS A PERCENTAGE OF BASE SALARY ON THE LAST DAY OF THE THREE-YEAR CYCLE, AND PPORTUNITY VARIES BY POSITION LEVEL. THE PLAN REQUIRES A THRESHOLD LEVEL OF FINANCIAL PERFORMANCE BEFORE ANY AWARDS CAN BE MADE, AND THE AMOUNT OF THE AWARDS VARIES WITH THE DEGREE OF ACHIEVEMENT OF THE TARGETS. THE MAXIMUM LTIP PAYOUT OPPORTUNITY RANGES FROM 30% TO 255% OF THE AVERAGE THREE-YEAR BASE SALARY as of December 31 in the last year of the three-year plan. AWARDS HAVE BEEN ACCRUED UNDER THE LTIP, BUT NO PAYMENTS ARE MADE UNTIL AFTER YEAR-END AND ACHIEVEMENT IS VERIFIED BY THE BANNER HEALTH BOARD COMPENSATION COMMITTEE AND APPROVED BY THE FULL BOARD OF DIRECTORS OF BANNER HEALTH. ALL LTIP COMPENSATION PAYMENTS ARE REPORTED IN THE INCENTIVE AND BONUS COMPENSATION SHOWN IN SCHEDULE J, PART II, COLUMN (B)(II). AMOUNTS PAID FOR THE 2019-2021 CYCLE ARE REPORTED IN SCHEDULE J, PART II, COLUMN (B) AS BONUS & INCENTIVE COMPENSATION. AMOUNTS ACCRUED FOR 2022 FOR THE 2020-2022, 2021-2023, AND 2022-2024 CYCLES (TO BE PAID OUT IN 2023, 2024 AND 2025 RESPECTIVELY) ARE REPORTED IN SCHEDULE J, PART II, COLUMN (C) AS DEFERRED COMPENSATION. 2022 LTIP Accrual: Shiva Birdi $89,481 2022 LTIP Payout: None 2. BANNER HEALTH HAS A MANAGEMENT INCENTIVE PLAN (MIP) WHICH IS BASED ON COMPANY ACHIEVEMENT OF SEVERAL FINANCIAL AND NON-FINANCIAL/CLINICAL QUALITY METRICS THAT ARE ESTABLISHED ANNUALLY BY THE BANNER HEALTH BOARD OF DIRECTORS. AWARDS ARE GRANTED AS A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND VARY WITH THE POSITION LEVEL OF THE PARTICIPATING EMPLOYEE, RANGING FROM 7% TO 110% OF BASE SALARY. IN 2022, THERE WERE 1,420 MIP PARTICIPANTS. THE MIP WAS ACCRUED IN 2022 FOR THE 2022 MIP, AND PAYOUTS ON THE 2021 MIP WERE PAID IN 2022. MIP COMPENSATION IS INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(II).

Schedule J, Part I, Line 3 COMPENSATION OF ORGANIZATION CEO

THE COMPENSATION OF THE ORGANIZATION'S CEO IS DETERMINED BY A RELATED TAX-EXEMPT ORGANIZATION. SEE SCHEDULE O FOR FORM 990, PART VI, LINES 15A AND 15B FOR THE PROCESS USED BY THE RELATED ORGANIZATION TO DETERMINE COMPENSATION.

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• BANNER AIR LLC

  N/A · MEDICAL TRANSPORT · DE

  Directly controlled by NA

• BANNER ATLAS JV LLC

  N/A · OUTPATIENT SURGERY CENTER · AZ

  Directly controlled by NA

• BANNER WEST VALLEY CARDIOLOGY MANAGEMENT LLC

  N/A · MEDICAL MANAGEMENT · AZ

  Directly controlled by NA

• BHSM REHABILITATION LLC

  N/A · MEDICAL SERVICES · DE

  Directly controlled by NA

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• BANNER HEALTH NETWORK

  C Corporation · ACCOUNTABLE CARE · AZ · controlled entity

  Directly controlled by NA

• BANNER INDEMNITY LTD

  C Corporation · INVESTMENTS · CJ · controlled entity

  Directly controlled by NA

• BANNER PLAN ADMINISTRATION INC

  C Corporation · THIRD PARTY ADMINISTRATION · AZ · controlled entity

  Directly controlled by NA

• NMSI INC

  C Corporation · PPO INSURANCE PROVIDER · CO · controlled entity

  Directly controlled by NA