BANNER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
INTEREST INCOME:
Loans receivable	$ 44,040	$ 46,846	$ 88,028	$ 93,601
Mortgage-backed securities	995	859	1,922	1,734
Other securities and cash equivalents	2,230	2,183	4,513	4,216
Total Interest Income	47,265	49,888	94,463	99,551
INTEREST EXPENSE:
Deposit Interest Expense	4,035	7,014	8,483	14,826
FHLB advances	64	64	127	242
Other Borrowings	74	568	623	1,147
Junior subordinated debentures	802	1,041	1,814	2,079
Total Interest Expense	4,975	8,687	11,047	18,294
Net interest income before provision for loan losses	42,290	41,201	83,416	81,257
PROVISION FOR LOAN LOSSES	4,000	8,000	9,000	25,000
Net interest income (loss)	38,290	33,201	74,416	56,257
OTHER OPERATING INCOME:
Deposit fees and other service charges	6,283	5,693	12,152	10,972
Mortgage banking operations	2,855	855	5,504	1,817
Loan servicing fees, net of amortization and impairment	343	397	560	653
Miscellaneous Income	485	369	1,036	862
Gain (loss) on sale of securities	29		29
Net change in valuation of financial instruments carried at fair value	(19,059)	1,939	(17,374)	2,195
Total other operating income(loss)	(9,064)	9,253	1,907	16,499
OTHER OPERATING EXPENSES:
Salary and employee benefits	19,390	18,288	38,900	35,543
Less capitalized loan origination costs	(2,747)	(1,948)	(4,997)	(3,668)
Occupancy and equipment	5,204	5,436	10,681	10,830
Information/computer data services	1,746	1,521	3,261	3,088
Payment and card processing expenses	2,116	1,939	4,006	3,586
Professional services	1,224	1,185	2,568	2,857
Advertising and marketing	1,650	1,903	3,716	3,643
Deposit insurance	816	1,389	2,179	3,358
State/municipal business and use taxes	565	544	1,133	1,038
REO operations	1,969	6,568	4,567	11,199
Amortization of core deposit intangibles	525	570	1,079	1,167
Miscellaneous Expense	3,208	2,860	6,486	5,758
Total other operating expenses	35,666	40,255	73,579	78,399
Income (loss) before provision for income taxes	(6,440)	2,199	2,744	(5,643)
PROVISION FOR (BENEFIT FROM) INCOME TAXES	(31,830)		(31,830)
NET INCOME (LOSS)	25,390	2,199	34,574	(5,643)
PREFERRED STOCK DIVIDEND AND DISCOUNT ACCRETION
Preferred stock dividend	1,550	1,550	3,100	3,100
Preferred stock discount accretion	454	425	908	851
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$ 23,386	$ 224	$ 30,566	$ (9,594)
Earnings (loss) per common share:
Earnings (loss) per common share basic	$ 1.27	$ 0.01	$ 1.69	$ (0.58)
Earnings (loss) per common share diluted	$ 1.27	$ 0.01	$ 1.69	$ (0.58)
Cumulative dividends declared per common share:	$ 0.01	$ 0.01	$ 0.02	$ 0.08