Banner Corporation Declares $12.50 Quarterly Cash Dividend On Fixed Rate Cumulative Perpetual Preferred Stock, Series A

  Banner Corporation Declares $12.50 Quarterly Cash Dividend On Fixed Rate
  Cumulative Perpetual Preferred Stock, Series A

Business Wire

WALLA WALLA, Wash. -- October 23, 2012

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 $12.50 per share on the Company’s Fixed Rate
Cumulative Perpetual Preferred Stock, Series A. The dividend is payable
November 15, 2012, to preferred shareholders of record on October 31,2012.

About the Company

Banner Corporation is a $4.2 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:

Banner Corporation
Mark J. Grescovich, President & CEO
Lloyd W. Baker, CFO
509-527-3636