BANNER CORPORATION AND SUBSIDIARIES - CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
INTEREST INCOME:
Loans receivable	$ 45,641	$ 51,162	$ 139,242	$ 156,394
Mortgage-backed securities	799	972	2,533	3,143
Other securities	3,121	2,116	7,337	6,317
Total Interest Income	49,561	54,250	149,112	165,854
INTEREST EXPENSE:
Deposit Interest Expense	6,169	12,301	20,995	42,799
FHLB advances	64	323	306	1,004
Other Borrowings	559	604	1,706	1,864
Junior subordinated debentures	1,041	1,100	3,120	3,174
Total Interest Expense	7,833	14,328	26,127	48,841
Net interest income before provision for loan losses	41,728	39,922	122,985	117,013
PROVISION FOR LOAN LOSSES	5,000	20,000	30,000	50,000
Net interest income (loss)	36,728	19,922	92,985	67,013
OTHER OPERATING INCOME:
Deposit fees and other service charges	6,096	5,702	17,068	16,494
Mortgage banking operations	1,401	2,519	3,218	4,284
Loan servicing fees	289	146	942	774
Miscellaneous Income	586	919	1,448	1,788
Other-than-temporary impairment losses	3,000	(3,000)	3,000	(4,231)
Net change in valuation of financial instruments carried at fair value	(1,032)	1,366	1,163	2,453
Total other operating income	10,340	7,652	26,839	21,562
OTHER OPERATING EXPENSES:
Salary and employee benefits	18,226	17,093	53,769	50,445
Less capitalized loan origination costs	(1,929)	(1,731)	(5,597)	(5,076)
Occupancy and equipment	5,352	5,546	16,182	16,731
Information/computer data services	1,547	1,501	4,635	4,601
Payment and card processing expenses	2,132	2,018	5,718	5,125
Professional services	1,950	1,500	4,807	4,661
Advertising and marketing	1,602	2,025	5,245	5,717
Deposit insurance	1,299	2,282	4,657	6,623
State/municipal business and use taxes	553	630	1,591	1,643
REO operations	6,698	11,757	17,897	18,981
Amortization of core deposit intangibles	554	600	1,721	1,859
Miscellaneous Expense	3,054	3,107	8,812	8,457
Total other operating expenses	41,038	46,328	119,437	119,767
Income (loss) before provision for (benefit from) income taxes	6,030	(18,754)	387	(31,192)
PROVISION FOR (BENEFIT FROM) INCOME TAXES		23,988		18,013
NET INCOME (LOSS)	6,030	(42,742)	387	(49,205)
PREFERRED STOCK DIVIDEND AND DISCOUNT ACCRETION
Preferred stock dividend	1,550	1,550	4,650	4,650
Preferred stock discount accretion	425	398	1,276	1,195
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$ 4,055	$ (44,690)	$ (5,539)	$ (55,050)
Earnings (loss) per common share:
Earnings (loss) per common share basic	$ 0.24	$ (2.83)	$ (0.33)	$ (7.31)
Earnings (loss) per common share diluted	$ 0.24	$ (2.83)	$ (0.33)	$ (7.31)
Cumulative dividends declared per common share:	$ 0.01	$ 0.07	$ 0.09	$ 0.21