Banner Corporation (Parent Corporation Only)

12 Months Ended

Dec. 31, 2011

Banner Corporation (Parent Corporation Only)

Banner Corporation (Parent Corporation Only)

Note 23:  BANNER CORPORATION (PARENT COMPANY ONLY)

Summary financial information is as follows (in thousands):                                                                                                                 

Statements of Financial Condition	December 31
		2011		2010
ASSETS
Cash	$	73,033	$	62,510
Investment in trust equities		3,716		3,716
Investment in subsidiaries		532,561		521,358
Other assets		1,207		1,333
	$	610,517	$	588,917
LIABILITIES AND STOCKHOLDERS’ EQUITY
Miscellaneous liabilities	$	2,106	$	1,774
Deferred tax liability		25,973		27,246
Junior subordinated debentures at fair value		49,988		48,425
Stockholders’ equity		532,450		511,472
	$	610,517	$	588,917

Statements of Operations	Years Ended December 31
		2011			2010			2009
INTEREST INCOME:
Certificates, time deposits and dividends	$	277		$	362		$	380
OTHER INCOME (EXPENSE):
Dividend income from subsidiaries		990			1,760			1,603
Equity in undistributed income of subsidiaries		9,478			(58,766	)		(41,755	)
Other income		46			46			61
Net change in valuation of financial instruments carried at fair value		(1,563	)		(730	)		14,082
Interest on other borrowings		(4,193	)		(4,226	)		(4,754	)
Other expenses		(2,313	)		(2,818	)		(2,815	)
		2,722			(64,372	)		(33,198	)
PROVISION FOR (BENEFIT FROM) INCOME TAXES		(2,735	)		2,476			(2,566	)
NET INCOME (LOSS)	$	5,457		$	(61,896	)	$	(35,764	)

Statements of Cash Flows	Years Ended December 31
		2011			2010			2009
OPERATING ACTIVITIES:
Net income (loss)	$	5,457		$	(61,896	)	$	(35,764	)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Equity in undistributed earnings of subsidiaries		(9,478	)		58,766			41,755
Amortization		--			4			23
Increase (decrease) in deferred taxes		(562	)		703			5,069
Net change in valuation of financial instruments              carried at fair value		1,563			730			(14,082	)
Increase in other assets		1,933			(847	)		(1,828	)
Increase (decrease) in other liabilities		(957	)		(1	)		3,118
Net cash used by operating activities		(2,044	)		(2,541	)		(1,709	)
INVESTING ACTIVITIES:
Funds transferred to deferred compensation trust		(162	)		(110	)		(252	)
Additional funds invested in subsidiaries		--			(110,000	)		(60,000	)
Net cash used by investing activities		(162	)		(110,110	)		(60,252	)
FINANCING ACTIVITIES:
Proceeds from issuance of preferred stock		--			--			(47	)
Issuance of stock for stockholder reinvestment   program		21,556			16,201			14,723
Issuance of stock in secondary offering, net of costs		--			161,637			--
Cash dividends paid		(8,827	)		(8,867	)		(7,498	)
Net cash provided from financing activities		12,729			168,971			7,178
NET INCREASE (DECREASE) IN CASH		10,523			56,320			(54,783	)
CASH, BEGINNING OF PERIOD		62,510			6,190			60,973
CASH, END OF PERIOD	$	73,033		$	62,510		$	6,190