BANR Banner Corporation

Banner Corporation (Nasdaq:BANR), the parent company of Banner Bank and Islanders Bank, today announced its Board of Directors declared a regular quarterly cash dividend of $0.01 per share. The dividend is payable July 18, 2011, to common shareholders of record on July 11, 2011. The dividend payment includes the adjustment for the 1-for-7 reverse stock split completed June 1, 2011. 

Banner Corporation also announced that it will report second quarter 2011 results after the market closes on Wednesday, July 20, 2011. Management will host a conference call on Thursday, July 21 at 8:00 a.m. PDT (11:00 a.m. EDT) to discuss the results. The call will also be broadcast live via the internet.

Interested investors may listen to the call live or via replay at www.bannerbank.com. Investment professionals are invited to dial (480) 629-9835 to participate in the call. A replay will be available for one week at (303) 590-3030, using access code 4453037.

About the Company

Banner Corporation is a $4.30 billion bank holding company operating two commercial banks in Washington, Oregon and Idaho. Banner serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

CONTACT: Mark J. Grescovich,
         President & CEO
         Lloyd W. Baker, CFO
         (509) 527-3636