Banner Corporation Declares $0.16 Quarterly Cash Dividend.

Business Editors

WALLA WALLA, Wash.--(BUSINESS WIRE)--March 19, 2004

Banner Corporation (Nasdaq:BANR), the parent of Banner Bank, today announced its Board of Directors declared a $0.16 per share cash dividend to be paid April 9, 2004 to shareholders of record on March 31, 2004.

"This is the 34th consecutive quarterly cash dividend paid since Banner instituted cash dividends in 1996. It is an effective way to share our success with shareholders," said D. Michael Jones, President and CEO. "Based on the current share price, our annualized dividend yield is 2.42%."

On January 27, 2004, Banner reported 2003 net income increased 74% over the prior year to $16.1 million, or $1.44 per diluted share. Revenues increased to $100.2 million for the year compared to $94.2 million in 2002. Assets grew 16% to $2.6 billion, deposits increased 12% to $1.7 billion and loans grew 10% to $1.7 billion from year ago levels.

Banner Corporation is the parent of Banner Bank, a commercial bank that operates a total of 42 branch offices and twelve loan offices in 20 counties 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.

Statements concerning future performance, developments or events, concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These factors include but are not limited to: BANR's ability to maintain current dividend payments or increase dividend payouts to shareholders. Banner undertakes no responsibility to update or revise any forward-looking statements.