Banner Corporation Declares $0.01 Quarterly Cash Dividend

WALLA WALLA, Wash., June 24, 2009 (GLOBE NEWSWIRE) -- 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 same as paid in the previous quarter. The dividend is
payable July 10, 2009, to common shareholders of record on July 3, 2009.

"Due to the current uncertainties in our markets, the Board believes it is
prudent to preserve the Company's capital position by maintaining a reduced cash
dividend payment. At the same time, we will continue to maintain our dividend
reinvestment and stock purchase plan, which provides additional capital
funding," said D. Michael Jones, President and CEO. "We anticipate resuming
payment of the higher level of cash dividends when the recovery in the regional
economy is more evident and the Company returns to acceptable levels of
profitability."

About Banner Corporation

Banner Corporation is a $4.5 billion bank holding company operating two
commercial banks through 87 branch locations 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.

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CONTACT: Banner Corporation
D. Michael Jones, President and CEO
Lloyd W. Baker, CFO
(509) 527-3636