December 30, 2008

Via Telecopy and EDGAR

Mark Webb, Esq.

Legal Branch Chief

Division of Corporate Finance

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C.  20549-4561

Re:          Banner Corporation

File No. 0-26584                                                                                                                                                                                   

Form 10-K for the period ended December 31, 2007

Form 10-Q for the periods ended March 31, June 30 and September 30, 2008

Dear Mr. Webb:

This letter is to acknowledge receipt of the comment letter, dated December 23, 2008.  As a result of the holidays and the number of comments contained in the comment letter, we respectfully request that we be given an extension to respond to your comment letter until January 24, 2009 to allow for us, our legal counsel and our auditors to have sufficient time to review and respond to the comments.

If you have any questions concerning this matter, please contact the undersigned at 509-526-8896 or e-mail at lbaker@bannerbank.com.

Sincerely, 

/s/Lloyd W. Baker  

Lloyd W. Baker 

Executive Vice President and 

Chief Financial Officer 

cc:	Paul Kline, Staff Accountant, SEC
	Matt McNair, Staff Attorney

10 South First Avenue • P.O. Box 907 • Walla Walla, WA 99362-0265

509-527-3636 • Fax: 509-526-8891 • www.bannerbank.com • Member FDIC