FORM 4
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL
[ ] Check box if no longer subject             OMB Number: 3235-0287
to Section 16.  Form 4 or Form STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Expires: January 31, 2005
5 obligations may continue.  See Instruction 1(b)   Estimated average burden hours per response....................0.5
   
(Print or Type Responses) Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility
 
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940  


1. Name and Address of Reporting Person*

Larsen, Michael K.
2. Issuer Name and Ticker or Trading Symbol

Banner Corporation "BANR"

6. Relationship of Reporting Person(s) to Issuer (Check all applicable)

                Director                         10% Owner
         X     Officer (give title             Other (specify
                              below)                      below)
         Executive Vice President, Banner Bank      

(Last)            (First)             (Middle)


10 South First Avenue
3. IRS Identification Number of Reporting Person, if an entity (voluntary) 4. Statement for Month/Day/Year

3/26/03                

                    (Street)



Walla Walla, WA  99362
5. If Amendment, Date of Original (Month/Year)

  7. Individual or Joint/Group Reporting
                 (check applicable line)
    XX Form Filed by One Reporting Person
          Form Filed by More than One Reporting
          Person

(City)          (State)           (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1. Title of Security (Instr. 3) 2. Trans-action Date (Month/Day/ Year) 2A.  Deemed Execution Date, if any (Month/
Day/Year)
3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction (s)  (Instr. 3 and 4) 6. Owner-ship Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
  Code V Amount (A) or (D) Price
                     
                          
                     
                      
                      
                       

Reminder:  Report on a separate line for each class of securities beneficially owned directly or indirectly.                                                                                            (Over)
*If the form is filed by more than one reporting person, see Instruction 4(b)(v).                                                                                                                SEC 1474 (9-02)
Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

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FORM 4 (continued)                    Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
                                                                    (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3) 2. Con-version or Exercise Price of Derivative Security 3. Trans-action Date (Month/ Day/Year) 3A. Deemed Execution Date (Month/
Day/Year)
4. Trans-action Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr.3, 4, and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Deriva-tive Se-curities Benefici- ally Owned Following Reported Trans-action(s)  (Instr. 4) 10. Owner-ship Form of Deri-vative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4 )
  Code V (A) (D) Date Exer-cisable Expiration Date Title Amount or Number of Shares
Option to buy Common Stock 15.67 3/26/03   A   6,000   * 3/26/13 Common Stock 6,000   110,796 D  
                                       
                                  
                                  
                                  
                                  

Explanation of Responses:
* Options awarded pursuant to 2001 Stock Option Plan; options are exercisable at rate of 20% each year beginning 3/26/04.

 

                                                                                                                                 /s/Michael K. Larsen                                        3/27/03       
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations.        **  Signature of Reporting Person                         Date
    See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a)                                                                        

Note: File three copies of this Form, one of which must be manually signed.
      If space provided is insufficient, see Instruction 6 for procedure

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.

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