----

----

| x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

| Oregon                                                              | 71-0918151                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

----

----

----

INDEX

| Part      I   | Financial      Information                                                 |                                                                                             |
|---------------|----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
|          |                                                                       |                                                                                             |   |
|          | Item      1.                                                               | Financial statements                                                                             |   |
|          |                                                                       | Consolidated balance sheets                                                                      | 3 |
|          |                                                                       | Consolidated statements of income and comprehensive      income                                  | 4-5 |
|          |                                                                       | Consolidated statements of changes in stockholders’      equity                            | 6 |
|          |                                                                       | Consolidated statements of cash    flows                                                         | 7 |
|          |                                                                       | Notes to consolidated financial    statements                                                    | 8-12 |
|          |                                                                       |                                                                                             |   |
|          | Item      2.                                                               | Management’s Discussion and Analysis of Financial Condition      And Results of Operations | 12-17 |
|          |                                                                       |                                                                                             |   |
|          | Item      3.                                                               | Quantitive and Qualitive Disclosures about Market      Risk                                      | 17 |
|          |                                                                       |                                                                                             |   |
|          | Item      4T.                                                              | Controls and Procedures                                                                          | 18 |
|          |                                                                       |                                                                                             |   |
| Part      II. | Other      Information                                                     |                                                                                             |
|          |                                                                       |                                                                                             |   |
|          | Item      1.                                                               | Legal proceedings                                                                                | 18 |
|          |                                                                       |                                                                                             |   |
|          | Item      1A.                                                              | Risk factors                                                                                     | 19 |
|          |                                                                       |                                                                                             |   |
|          | Item      2.                                                               | Unregistered sales of equity securities and use of      proceeds                                 | 19 |
|          |                                                                       |                                                                                             |   |
|          | Item      3.                                                               | Defaults upon senior securities                                                                  | 19 |
|          |                                                                       |                                                                                             |   |
|          | Item      4.                                                               | Submission of matters to a vote of security      holders                                         | 19 |
|          |                                                                       |                                                                                             |   |
|          | Item      5.                                                               | Other information                                                                                | 19 |
|          |                                                                       |                                                                                             |   |
|          | Item      6.                                                               | Exhibits and Reports on Form 8-K                                                                 | 19 |
|          |                                                                       |                                                                                             |   |
|          | Signatures                                                                 | 20                                                                                               |
|          | Exhibit      3.1                                                           | 21-23                                                                                            |
|          | Certifications      of Chief Executive Officer and Chief Financial Officer | 24-26                                                                                            |

----

Index

| PART      1. | FINANCIAL      INFORMATION |
|--------------|----------------------------|

| Item      1. | Financial statements |
|--------------|----------------------|

BALANCE 

|                                                                                                                                                                              |   | MARCH      31, |        |   | DECEMBER      31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                            |   | 2008           |        |   | 2007              |   |
|                                                                                                                                                                              |   |           |        |   |              |   |
| Cash      and cash equivalents                                                                                                                                                    |   | $              | 5,888,744   |   |              | $      | 4,065,903 |   |
| Interest-bearing      deposits in banks                                                                                                                                           |   |           | 1,657,196   |   |              |   | 5,205,115 |   |
| Available-for-sale      securities, at fair value                                                                                                                                 |   |           | 10,324,507  |   |              |   | 8,781,951 |   |
| Restricted      equity securities                                                                                                                                                 |   |           | 1,023,550   |   |              |   | 1,023,550 |   |
| Loans      held-for-sale                                                                                                                                                          |   |           | 306,215     |   |              |   | 703,609 |   |
| Loans,      net of allowance for loan losses and deferred fees                                                                                                                    |   |           | 126,831,638 |   |              |   | 121,746,444 |   |
| Premises      & equipment, net                                                                                                                                                |   |           | 7,995,615   |   |              |   | 8,070,927 |   |
| Other      real estate owned                                                                                                                                                      |   |           | 83,980      |   |              |   | - |   |
| Intangible      assets, net                                                                                                                                                       |   |           | 273,700     |   |              |   | 294,400 |   |
| Accrued      interest and other assets                                                                                                                                            |   |           | 2,603,940   |   |              |   | 2,712,441 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Total      assets                                                                                                                                                                 |   | $              | 156,989,085 |   |              | $      | 152,604,340 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                                         |   |           |        |   |              |   |   |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Deposits:                                                                                                                                                                         |   |           |        |   |              |   |   |   |
| Demand      deposits                                                                                                                                                              |   | $              | 30,486,784  |   |              | $      | 32,725,916 |   |
| Interest-bearing      demand deposits                                                                                                                                             |   |           | 39,853,980  |   |              |   | 38,306,339 |   |
| Savings      deposits                                                                                                                                                             |   |           | 13,123,205  |   |              |   | 13,612,313 |   |
| Time      certificate accounts:                                                                                                                                                   |   |           |        |   |              |   |   |   |
| $100,000      or more                                                                                                                                                             |   |           | 17,134,980  |   |              |   | 18,038,790 |   |
| Other      time certificate accounts                                                                                                                                              |   |           | 19,105,677  |   |              |   | 18,309,056 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Total      deposits                                                                                                                                                               |   |           | 119,704,626 |   |              |   | 120,992,414 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Federal      Home Loan Bank borrowings and other debt                                                                                                                             |   |           | 16,196,389  |   |              |   | 10,717,472 |   |
| Floating      rate Junior Subordinated Deferrable Interest Debentures (Trust Preferred      Securities)                                                                           |   |           | 4,124,000   |   |              |   | 4,124,000 |   |
| Deferred      compensation liability                                                                                                                                              |   |           | 2,465,145   |   |              |   | 2,448,634 |   |
| Accrued      interest and other liabilities                                                                                                                                       |   |           | 923,257     |   |              |   | 949,932 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Total      liabilities                                                                                                                                                            |   |           | 143,413,417 |   |              |   | 139,232,452 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Stockholders’      equity                                                                                                                                                   |   |           |        |   |              |   |   |   |
| Common      stock, no par value, 10,000,000 shares authorized with 2,170,464 and      2,211,865 issued and outstanding at March 31, 2008 and December 31, 2007,      respectively |   |           | 5,372,600   |   |              |   | 5,323,827 |   |
| Undivided      profits                                                                                                                                                            |   |           | 8,117,808   |   |              |   | 8,002,555 |   |
| Accumulated      other comprehensive income, net of tax                                                                                                                           |   |           | 85,260      |   |              |   | 45,506 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Total      stockholders’ equity                                                                                                                                             |   |           | 13,575,668  |   |              |   | 13,371,888 |   |
|                                                                                                                                                                              |   |           |        |   |              |   |   |   |
| Total      liabilities and stockholders’ equity                                                                                                                             |   | $              | 156,989,085 |   |              | $      | 152,604,340 |   |

----

Index

CONSOLIDATED STATEMENTS OF INCOME

|                                                      |   | Three      Months Ended March 31, |      |
|-----------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                      |   | 2008                              |      |   | 2007 |   |
|                                                      |   |                              |      |   |   |   |
| INTEREST      INCOME                                      |   |                              |      |   |   |   |
| Interest      and fees on loans                           |   | $                                 | 2,612,669 |   |   | $ | 2,693,995 |   |
| Interest      on investment securities:                   |   |                              |      |   |   |   |   |   |
| U.S.      Teasuries and agencies                          |   |                              | 45,406    |   |   |   | 36,798 |   |
| Mortgage      backed securities                           |   |                              | 15,540    |   |   |   | - |   |
| State      and political subdivisions                     |   |                              | 53,447    |   |   |   | 59,157 |   |
| Corporate      and other investments                      |   |                              | 7,028     |   |   |   | 8,426 |   |
| Interest      on deposits in banks                        |   |                              | 42,396    |   |   |   | 58,418 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| Total      interest income                                |   |                              | 2,776,486 |   |   |   | 2,856,794 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| INTEREST      EXPENSE                                     |   |                              |      |   |   |   |   |   |
| Interest-bearing      demand deposits                     |   |                              | 257,990   |   |   |   | 303,608 |   |
| Savings      deposits                                     |   |                              | 21,010    |   |   |   | 26,674 |   |
| Time      deposits                                        |   |                              | 399,709   |   |   |   | 362,083 |   |
| Other      borrowings                                     |   |                              | 219,625   |   |   |   | 202,027 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| Total      interest expense                               |   |                              | 898,334   |   |   |   | 894,392 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| Net      interest income before provision for loan losses |   |                              | 1,878,152 |   |   |   | 1,962,402 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| PROVISION      FOR LOAN LOSSES                            |   |                              | -         |   |   |   | - |   |
|                                                      |   |                              |      |   |   |   |   |   |
| Net      interest income after provision for loan losses  |   |                              | 1,878,152 |   |   |   | 1,962,402 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| NONINTEREST      INCOME                                   |   |                              |      |   |   |   |   |   |
| Service      charges and fees                             |   |                              | 176,155   |   |   |   | 218,674 |   |
| Trust      fee income                                     |   |                              | 174,590   |   |   |   | 173,393 |   |
| Mortgage      loan sales and servicing fees, net          |   |                              | 70,259    |   |   |   | 106,606 |   |
| Investment      sales commissions                         |   |                              | 176,140   |   |   |   | 100,278 |   |
| Other      income                                         |   |                              | 47,822    |   |   |   | 45,719 |   |
|                                                      |   |                              |      |   |   |   |   |   |
| Total      noninterest income                             |   |                              | 644,966   |   |   |   | 644,670 |   |

----

Index

CONSOLIDATED STATEMENTS OF INCOME

|                                                              |   | Three      Months Ended March 31, |      |
|-------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                              |   | 2008                              |      |   | 2007 |   |
|                                                              |   |                              |      |   |   |   |
| NONINTEREST      EXPENSE                                          |   |                              |      |   |   |   |
| Salaries      and benefits                                        |   |                              | 1,297,208 |   |   |   | 1,196,149 |   |
| Occupancy                                                         |   |                              | 239,375   |   |   |   | 235,585 |   |
| Supplies                                                          |   |                              | 43,908    |   |   |   | 40,604 |   |
| Postage      and freight                                          |   |                              | 26,369    |   |   |   | 23,848 |   |
| Outside      services                                             |   |                              | 208,891   |   |   |   | 202,806 |   |
| Advertising                                                       |   |                              | 25,989    |   |   |   | 27,546 |   |
| Loan      collection expense                                      |   |                              | 37,713    |   |   |   | 12,540 |   |
| Other      expenses                                               |   |                              | 214,148   |   |   |   | 198,313 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| Total      noninterest expense                                    |   |                              | 2,093,601 |   |   |   | 1,937,391 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                                   |   |                              | 429,517   |   |   |   | 669,681 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| PROVISION      FOR INCOME TAXES                                   |   |                              | 140,162   |   |   |   | 241,185 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| NET      INCOME                                                   |   |                              | 289,355   |   |   |   | 428,496 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME                                   |   |                              |      |   |   |   |   |   |
| Unrealized      gain on available-for-sale securities, net of tax |   |                              | 39,754    |   |   |   | 6,515 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| COMPREHENSIVE      INCOME                                         |   | $                                 | 329,109   |   |   | $ | 435,011 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| EARNINGS      PER SHARE OF COMMON STOCK                           |   |                              |      |   |   |   |   |   |
| Basic      earnings per share                                     |   | $                                 | 0.13      |   |   | $ | 0.20 |   |
| Diluted      earnings per share                                   |   | $                                 | 0.13      |   |   | $ | 0.19 |   |
|                                                              |   |                              |      |   |   |   |   |   |
| WEIGHTED      AVERAGE COMMON SHARES OUTSTANDING                   |   |                              |      |   |   |   |   |   |
| Basic                                                             |   |                              | 2,207,669 |   |   |   | 2,190,163 |   |
| Diluted                                                           |   |                              | 2,209,660 |   |   |   | 2,198,434 |   |

----

Index

CHANGES 

|                                                                   |   |              |      |   |      |   |      |          |   |   | Accumulated   |   |   |   |   |
|------------------------------------------------------------------------|--------|-------------------|-----------|--------|-----------|--------|-----------|---------------|--------|--------|---------------|--------|--------|--------|--------|
|                                                                   |   |              |      |   |      |   |      |          |   |   | Other         |   |   | Total  |   |
|                                                                   |   | Common      Stock |      |   | Undivided |   |      | Comprehensive |   |   | Stockholders' |   |
|                                                                   |   | Shares            |      |   | Amount    |   |      | Profits       |   |   | Income        |   |   | Equity |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |
| BALANCE,      December 31, 2006                                        |   |              | 2,187,349 |   |      | $      | 5,100,037 |          |   | $      | 6,795,987     |   |   | $      | 4,809  |   |   | $ | 11,900,833 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Exercise      of stock options                                         |   |              | 14,833    |   |      |   | 105,002   |          |   |   | -             |   |   |   | -      |   |   |   | 105,002 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Stock      repurchased                                                 |   |              | (6,450    | )      |      |   | (62,740   | )             |   |   | -             |   |   |   | -      |   |   |   | (62,740 | ) |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation                                          |   |              | -         |   |      |   | 638       |          |   |   | -             |   |   |   | -      |   |   |   | 638 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid                                               |   |              | -         |   |      |   | -         |          |   |   | (457,699      | )      |   |   | -      |   |   |   | (457,699 | ) |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Dividends      reinvested in stock                                     |   |              | 16,133    |   |      |   | 180,890   |          |   |   | (180,890      | )      |   |   | -      |   |   |   | - |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Net      income and comprehensive income                               |   |              | -         |   |      |   | -         |          |   |   | 1,845,157     |   |   |   | 40,697 |   |   |   | 1,885,854 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| BALANCE,      December 31, 2007                                        |   |              | 2,211,865 |   |      | $      | 5,323,827 |          |   | $      | 8,002,555     |   |   | $      | 45,506 |   |   | $ | 13,371,888 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Adoption      of fair value option -- Board deferred compensation plan |   |              | -         |   |      |   | -         |          |   |   | 2,848         |   |   |   | -      |   |   |   | 2,848 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation                                          |   |              | -         |   |      |   | 789       |          |   |   | -             |   |   |   | -      |   |   |   | 789 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid                                               |   |              | -         |   |      |   | -         |          |   |   | (128,966      | )      |   |   | -      |   |   |   | (128,966 | ) |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Dividends      reinvested in stock                                     |   |              | 4,887     |   |      |   | 47,984    |          |   |   | (47,984       | )      |   |   | -      |   |   |   | - |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Cash      payable for reverse stock-split fractional shares            |   |              | (46,288   | )      |      |   | (601,744  | )             |   |   | -             |   |   |   | -      |   |   |   | (601,744 | ) |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Net      income and comprehensive income                               |   |              | -         |   |      |   | -         |          |   |   | 289,355       |   |   |   | 39,754 |   |   |   | 329,109 |   |
|                                                                   |   |              |      |   |      |   |      |          |   |   |          |   |   |   |   |   |   |   |   |   |
| BALANCE,      March 31, 2008                                           |   |              | 2,170,464 |   |      | $      | 4,770,856 |          |   | $      | 8,117,808     |   |   | $      | 85,260 |   |   | $ | 12,973,924 |   |

----

Index

STATEMENTS 

|                                                                               |   | Three      Months Ended March 31, |       |
|------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                               |   | 2008                              |       |   | 2007 |   |
|                                                                               |   |                              |       |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                          |   |                              |       |   |   |   |
| Net      income                                                                    |   | $                                 | 289,355    |   |   | $ | 428,496 |   |
| Adjustments      to reconcile net income to net cash from operating    activities: |   |                              |       |   |   |   |   |   |
| Depreciation      and amortization                                                 |   |                              | 175,820    |   |   |   | 144,085 |   |
| Stock-based      compensation                                                      |   |                              | 789        |   |   |   | 433 |   |
| Net      change in mortgage loans held-for-sale                                    |   |                              | 397,394    |   |   |   | (136,107 | ) |
| Net      decrease in accrued interest and other assets                             |   |                              | 81,998     |   |   |   | 1,395,388 |   |
| Net      (increase) decrease in accrued interest and other    liabilities          |   |                              | (9,590     | ) |   |   | 129,771 |   |
| Change      in fair value of Board deferred compensation plan                      |   |                              | 2,274      |   |   |   | - |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| Net      cash from operating activities                                            |   |                              | 938,040    |   |   |   | 1,962,066 |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                          |   |                              |       |   |   |   |   |   |
| Proceeds      from sales and maturities of available-for-sale securities           |   |                              | 1,505,371  |   |   |   | 500,000 |   |
| Purchase      of available-for-sale securities                                     |   |                              | (2,988,575 | ) |   |   | - |   |
| Net      increase (decrease) in interest-bearing deposits in banks                 |   |                              | 3,547,919  |   |   |   | (4,081,654 | ) |
| Loans      originated, net of principal repayments                                 |   |                              | (5,169,174 | ) |   |   | (1,552,504 | ) |
| Purchase      of premises and equipment                                            |   |                              | (72,903    | ) |   |   | (846,376 | ) |
|                                                                               |   |                              |       |   |   |   |   |   |
| Net      cash from investing activities                                            |   |                              | (3,177,362 | ) |   |   | (5,980,534 | ) |
|                                                                               |   |                              |       |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                          |   |                              |       |   |   |   |   |   |
| Net      (decrease) increase in demand and savings deposit accounts                |   |                              | (1,180,599 | ) |   |   | 1,849,790 |   |
| Net      (decrease) increase in time deposits                                      |   |                              | (107,189   | ) |   |   | 2,721,029 |   |
| Net      increase in Federal funds purchased                                       |   |                              | 1,600,000  |   |   |   | - |   |
| Proceeds      from Federal Home Loan Bank borrowings                               |   |                              | 4,000,000  |   |   |   | - |   |
| Repayment      of Federal Home Loan Bank and other borrowings                      |   |                              | (13,749    | ) |   |   | (613,750 | ) |
| Repayment      of debt from purchase of brokerage firm                             |   |                              | (107,334   | ) |   |   | (107,334 | ) |
| Proceeds      from exercise of common stock options                                |   |                              | -          |   |   |   | 99,999 |   |
| Cash      dividends paid                                                           |   |                              | (128,966   | ) |   |   | (108,445 | ) |
| Net      cash from financing activities                                            |   |                              | 4,062,163  |   |   |   | 3,841,289 |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                          |   |                              | 1,822,841  |   |   |   | (177,179 | ) |
|                                                                               |   |                              |       |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, beginning of period                                |   | $                                 | 4,065,903  |   |   | $ | 4,473,047 |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, end of period                                      |   | $                                 | 5,888,744  |   |   | $ | 4,295,868 |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| SCHEDULE      OF NONCASH ACTIVITIES                                                |   |                              |       |   |   |   |   |   |
| Stock      dividends reinvested                                                    |   | $                                 | 47,984     |   |   | $ | 44,669 |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| Change      in fair value of AFS securities, net of tax                            |   | $                                 | 39,754     |   |   | $ | 6,515 |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| Additions      to real estate owned                                                |   | $                                 | 83,980     |   |   | $ | - |   |
|                                                                               |   |                              |       |   |   |   |   |   |
| Stock      buyback after reverse stock split payable declared                      |   | $                                 | (601,744   | ) |   | $ | - |   |

----

Index

Notes 

----

Index

|                                  |   |      |       |   |       |   |    | Gross          |   |   | Gross          |   |   |      |    |
|---------------------------------------|--------|-----------|------------|--------|------------|--------|---------|----------------|--------|--------|----------------|--------|--------|-----------|---------|
|                                  |   |      |       |   |       |   |    | Unrealized     |   |   | Unrealized     |   |   |      |    |
|                                  |   |      |       |   | Gross      |   |    | Losses         |   |   | Losses         |   |   | Estimated |    |
|                                  |   | Amortized |       |   | Unrealized |   |    | Less      than |   |   | More      than |   |   | Fair      |    |
|                                  |   | Cost      |       |   | Gains      |   |    | 12      Months |   |   | 12      Months |   |   | Value     |    |
| March      31, 2008:                  |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |
|                                  |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |
| U.S.      Treasury and agencies       |   | $         | 3,010,286  |   |       | $      | 65,006  |           |   | $      | -              |   |   | $         | -       |   |   | $ | 3,075,292 |   |
| State      and political subdivisions |   |      | 5,469,919  |   |       |   | 103,352 |           |   |   | (7             | )      |   |      | (16,996 | ) |   |   | 5,556,268 |   |
| Corporate      notes                  |   |      | -          |   |       |   | -       |           |   |   | -              |   |   |      | -       |   |   |   | - |   |
| Mortgage-backed      securities       |   |      | 1,702,201  |   |       |   | -       |           |   |   | (9,254         | )      |   |      | -       |   |   |   | 1,692,947 |   |
|                                  |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |   |   |   |   |   |
|                                  |   | $         | 10,182,406 |   |       | $      | 168,358 |           |   | $      | (9,261         | )      |   | $         | (16,996 | ) |   | $ | 10,324,507 |   |
|                                  |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |   |   |   |   |   |
|                                  |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |   |   |   |   |   |
| December      31, 2007:               |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |   |   |   |   |   |
| U.S.      Treasury and agencies       |   | $         | 4,010,910  |   |       | $      | 18,750  |           |   | $      | -              |   |   | $         | (2,813  | ) |   | $ | 4,026,847 |   |
| State      and political subdivisions |   |      | 4,253,537  |   |       |   | 63,487  |           |   |   | (3,913         | )      |   |      | (261    | ) |   |   | 4,312,850 |   |
| Corporate      notes                  |   |      | 441,660    |   |       |   | 594     |           |   |   | -              |   |   |      | -       |   |   |   | 442,254 |   |
| Mortgage-backed      securities       |   |      | -          |   |       |   | -       |           |   |   | -              |   |   |      | -       |   |   |   | - |   |
|                                  |   |      |       |   |       |   |    |           |   |   |           |   |   |      |    |   |   |   |   |   |
|                                  |   | $         | 8,706,107  |   |       | $      | 82,831  |           |   | $      | (3,913         | )      |   | $         | (3,074  | ) |   | $ | 8,781,951 |   |

|                                                                |   | MAR.      31, 2008 |        |   | DEC.      31, 2007 |   |
|---------------------------------------------------------------------|--------|--------------------|-------------|--------|--------------------|--------|
|                                                                |   |               |        |   |               |   |
| Real      estate                                                    |   | $                  | 19,657,574  |   |               | $      | 19,804,208 |   |
| Commercial                                                          |   |               | 102,572,874 |   |               |   | 97,381,490 |   |
| Installment                                                         |   |               | 6,865,551   |   |               |   | 6,814,836 |   |
| Overdrafts                                                          |   |               | 41,350      |   |               |   | 28,459 |   |
|                                                                |   |               |        |   |               |   |   |   |
| Total      Loans                                                    |   |               | 129,137,349 |   |               |   | 124,028,993 |   |
| Less      allowance for loan losses                                 |   |               | (1,966,350  | )      |               |   | (1,965,102 | ) |
| Less      deferred loan fees                                        |   |               | (339,361    | )      |               |   | (317,447 | ) |
| Loans,      net of allowance for loan losses and deferred loan fees |   | $                  | 126,831,638 |   |               | $      | 121,746,444 |   |

----

Index

|                              |   | MAR.      31, 2008 |      |   | MAR.      31, 2007 |   |
|-----------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
|                              |   |               |      |   |               |   |
| Balance,      beginning of period |   | $                  | 1,965,102 |   |               | $      | 1,861,221 |   |
| Provision      for loan losses    |   |               | -         |   |               |   | - |   |
| Loans      charged off            |   |               | -         |   |               |   | - |   |
| Loan      recoveries              |   |               | 1,248     |   |               |   | - |   |
|                              |   |               |      |   |               |   |   |   |
| Balance,      end of period       |   | $                  | 1,966,350 |   |               | $      | 1,861,221 |   |

----

Index

|                                |   |   |   |   | Weighted       |   |   | Weighted      Avg.   |   |   |      |   |
|-------------------------------------|--------|--------|--------|--------|----------------|--------|--------|----------------------|--------|--------|-----------|--------|
|                                |   |   |   |   | Average        |   |   | Remaining            |   |   | Aggregate |   |
|                                |   |   |   |   | Exercise       |   |   | Contractual          |   |   | Intrinsic |   |
| Options                             |   | Shares |   |   | Price      ($) |   |   | Term      ( in yrs.) |   |   | Value     |   |
|                                |   |   |   |   |           |   |   |                 |   |   |      |   |
| Outstanding      at January 1, 2008 |   |   | 17,329 |   |           |   | 9.95   |                 |   |   |      |   |   |   |
| Granted                             |   |   | -      |   |           |   |   |                 |   |   |      |   |   |   |
| Expired                             |   |   | (1,351 | )      |           |   | 7.40   |                 |   |   |      |   |   |   |
| Outstanding      at March 31, 2008  |   |   | 15,978 |   |           |   | 10.17  |                 |   |   | 2.89      |   |   |   | 15,063 |   |
| Vested      at March 31, 2008       |   |   | 11,546 |   |           |   | 9.27   |                 |   |   | 1.72      |   |   |   | 15,063 |   |
| Exercisable      at March 31, 2008  |   |   | 8,888  |   |           |   | 8.83   |                 |   |   | 1.64      |   |   |   | 15,063 |   |

|   | Level      1 - | Quoted      market prices in active markets for identical assets or      liabilities |
|--------|----------------|--------------------------------------------------------------------------------------|

|   | Level      2 - | Significant      other observable inputs (e.g., quoted prices for similar items in active      markets, quoted prices for identical or similar items in markets that are      not active, inputs other than quoted prices that are observable such as      interest rate and yield curves, and market-corroborated      inputs) |
|--------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3 - | Significant      unobservable inputs that reflect the reporting entity’s own assumptions      about the assumptions that market participants would use in pricing an      asset or liability. |
|--------|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                  |   | March      31, |       |   | Fair      Value Measurements at March 31, 2008 Using |   |
|---------------------------------------|--------|----------------|------------|--------|------------------------------------------------------|--------|
|                                  |   | 2008           |       |   | Level      1 Inputs                                  |   |   | Level      2 Inputs |   |   | Level      3 Inputs |   |
| Assets:                               |   |           |       |   |                                                 |   |   |   |   |   |   |   |
| Available-for-sale      securities    |   | $              | 10,324,507 |   |                                                 | $      | — |   |   | $ | 10,324,507 |   |   | $ | — |   |
| Liabilities      :                    |   |           |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Board      Deferred Compensation Plan |   | $              | 21,376     |   |                                                 | $      | — |   |   | $ | 21,376 |   |   | $ | — |   |

| Item      2. | Management’sDiscussion and Analysis of Financial Condition and Results of      Operations |
|--------------|-------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

|                                                   |   | Three      Months Ended Mar 31, 2008 |    |   | Three      Months Ended Mar 31, 2007 |   |   | Increase      (Decrease) |   |
|--------------------------------------------------------|--------|--------------------------------------|---------|--------|--------------------------------------|--------|--------|--------------------------|--------|
|                                                   |   |                                 |    |   | Interest                             |   |   | Average                  |   |   |   |   |   | Interest |   |   | Average |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Average                              |    |   | Income      or                       |   |   | Yield      or            |   |   | Average |   |   | Income      or |   |   | Yield      or |   |   | Due      to change in |   |   | Net |   |
| (dollars      in thousands)                            |   | Balance                              |    |   | Expense                              |   |   | Rates                    |   |   | Balance |   |   | Expense |   |   | Rates |   |   | Volume |   |   | Rate |   |   | Change |   |
| Interest-earning      assets:                          |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      (2)                                         |   | $                                    | 127,139 |   |                                 | $      | 2,613  |                     |   |   | 8.22 | % |   | $ | 124,023 |   |   | $ | 2,689 |   |   |   | 8.67 | % |   | $ | 68 |   |   | $ | (144 | ) |   | $ | (76 | ) |
| Investment      securities                             |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable      securities                                |   |                                 | 6,212   |   |                                 |   | 69     |                     |   |   | 4.44 | % |   |   | 5,573 |   |   |   | 48 |   |   |   | 3.45 | % |   |   | 6 |   |   |   | 15 |   |   |   | 21 |   |
| Nontaxable      securities (1)                         |   |                                 | 5,116   |   |                                 |   | 79     |                     |   |   | 6.16 | % |   |   | 5,437 |   |   |   | 86 |   |   |   | 6.35 | % |   |   | (5 | ) |   |   | (2 | ) |   |   | (7 | ) |
| Interest-earning      balances due from banks          |   |                                 | 4,481   |   |                                 |   | 42     |                     |   |   | 3.75 | % |   |   | 4,381 |   |   |   | 58 |   |   |   | 5.30 | % |   |   | 1 |   |   |   | (17 | ) |   |   | (16 | ) |
| Total      interest-earning assets                     |   |                                 | 142,948 |   |                                 |   | 2,803  |                     |   |   | 7.84 | % |   |   | 139,414 |   |   |   | 2,881 |   |   |   | 8.27 | % |   |   | 70 |   |   |   | (148 | ) |   |   | (78 | ) |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                           |   |                                 | 3,487   |   |                                 |   |   |                     |   |   |   |   |   |   | 3,932 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                       |   |                                 | 8,044   |   |                                 |   |   |                     |   |   |   |   |   |   | 7,472 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      real estate                                 |   |                                 | 6       |   |                                 |   |   |                     |   |   |   |   |   |   | 0 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan      loss allowance                               |   |                                 | (1,965  | )      |                                 |   |   |                     |   |   |   |   |   |   | (1,861 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      assets                                      |   |                                 | 2,972   |   |                                 |   |   |                     |   |   |   |   |   |   | 2,870 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                      |   | $                                    | 155,492 |   |                                 |   |   |                     |   |   |   |   |   | $ | 151,827 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                     |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      checking and savings accounts    |   | $                                    | 52,567  |   |                                 | $      | 279    |                     |   |   | 2.12 | % |   | $ | 55,486 |   |   | $ | 330 |   |   |   | 2.38 | % |   | $ | (17 | ) |   | $ | (34 | ) |   | $ | (51 | ) |
| Time      deposit and IRA accounts                     |   |                                 | 36,729  |   |                                 |   | 400    |                     |   |   | 4.36 | % |   |   | 33,741 |   |   |   | 362 |   |   |   | 4.29 | % |   |   | 32 |   |   |   | 6 |   |   |   | 38 |   |
| Borrowed      funds                                    |   |                                 | 18,417  |   |                                 |   | 220    |                     |   |   | 4.78 | % |   |   | 15,148 |   |   |   | 202 |   |   |   | 5.33 | % |   |   | 44 |   |   |   | (26 | ) |   |   | 18 |   |
| Total      interest-bearing liabilities                |   |                                 | 107,713 |   |                                 |   | 899    |                     |   |   | 3.34 | % |   |   | 104,375 |   |   |   | 894 |   |   |   | 3.43 | % |   |   | 58 |   |   |   | (53 | ) |   |   | 5 |   |
| Noninterest-bearing      deposits                      |   |                                 | 30,858  |   |                                 |   |   |                     |   |   |   |   |   |   | 31,945 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                 |   |                                 | 3,473   |   |                                 |   |   |                     |   |   |   |   |   |   | 3,488 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                 |   |                                 | 142,044 |   |                                 |   |   |                     |   |   |   |   |   |   | 139,808 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                        |   |                                 | 13,448  |   |                                 |   |   |                     |   |   |   |   |   |   | 12,019 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and share-holders’ equity |   | $                                    | 155,492 |   |                                 |   |   |                     |   |   |   |   |   | $ | 151,827 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                               |   |                                 |    |   |                                 | $      | 1,904  |                     |   |   |   |   |   |   |   |   |   | $ | 1,987 |   |   |   |   |   |   | $ | 11 |   |   | $ | (95 | ) |   | $ | (83 | ) |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest spread                               |   |                                 |    |   |                                 |   |   |                     |   |   | 4.50 | % |   |   |   |   |   |   |   |   |   |   | 4.84 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest expense to average earning assets    |   |                                 |    |   |                                 |   |   |                     |   |   | 2.52 | % |   |   |   |   |   |   |   |   |   |   | 2.57 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |    |   |                                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin                               |   |                                 |    |   |                                 |   |   |                     |   |   | 5.33 | % |   |   |   |   |   |   |   |   |   |   | 5.70 | % |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                             |   | Three      months ended |    |   |   |   |    |          |   |
|--------------------------------------------------|--------|-------------------------|---------|--------|--------|--------|---------|---------------|--------|
|                                             |   | March      31,          |    |   |   |   |    |          |   |
|                                             |   | 2008                    |    |   | 2007   |   |    | $      Change |   |   | % Change |   |
|                                             |   |                    |    |   |   |   |    |          |   |   |   |   |
| Service      charges and fees                    |   | $                       | 176,155 |   |   | $      | 218,674 |          |   | $ | (42,519 | ) |   |   | -19.4 | % |
| Investment      sales commissions                |   |                    | 176,140 |   |   |   | 100,278 |          |   | $ | 75,862 |   |   |   | 75.7 | % |
| Trust      fee income                            |   |                    | 174,590 |   |   |   | 173,393 |          |   | $ | 1,197 |   |   |   | 0.7 | % |
| Mortgage      loan sales and servicing fees, net |   |                    | 70,259  |   |   |   | 106,606 |          |   | $ | (36,347 | ) |   |   | -34.1 | % |
| Other      income                                |   |                    | 47,822  |   |   |   | 45,719  |          |   | $ | 2,103 |   |   |   | 4.6 | % |
|                                             |   |                    |    |   |   |   |    |          |   |   |   |   |   |   |   |   |
|                                             |   | $                       | 644,966 |   |   | $      | 644,670 |          |   | $ | 296 |   |   |   | 0.0 | % |

|                       |   | Three      months ended |      |   |   |   |      |          |   |
|----------------------------|--------|-------------------------|-----------|--------|--------|--------|-----------|---------------|--------|
|                       |   | March      31,          |      |   |   |   |      |          |   |
|                       |   | 2008                    |      |   | 2007   |   |      | $      Change |   |   | % Change |   |
|                       |   |                    |      |   |   |   |      |          |   |   |   |   |
| Salaries      and benefits |   | $                       | 1,297,208 |   |   | $      | 1,196,149 |          |   | $ | 101,059 |   |   |   | 8.4 | % |
| Occupancy      expense     |   |                    | 239,375   |   |   |   | 235,585   |          |   | $ | 3,790 |   |   |   | 1.6 | % |
| Outside      services      |   |                    | 208,891   |   |   |   | 202,806   |          |   | $ | 6,085 |   |   |   | 3.0 | % |
| Other      expenses        |   |                    | 348,127   |   |   |   | 302,851   |          |   | $ | 45,276 |   |   |   | 14.9 | % |
|                       |   |                    |      |   |   |   |      |          |   |   |   |   |   |   |   |   |
|                       |   | $                       | 2,093,601 |   |   | $      | 1,937,391 |          |   | $ | 156,210 |   |   |   | 8.1 | % |

----

Index

| Item      3. | Quantitive and Qualitive Disclosures about Market      Risk |
|--------------|-------------------------------------------------------------|

----

Index

| Item      4T. | Controls      and Procedures |
|---------------|------------------------------|

| (a) | The      Company’s management, including the Company’s Chief Executive Officer and      Chief Financial Officer, evaluated the effectiveness of its disclosure      controls and procedures as of March 31, 2008. Based on this evaluation,      the Chief Executive Officer and the Chief Financial Officer each concludes      that as of March 31, 2008, the Company maintained effective disclosure      controls and procedures in all material respects, including those to      ensure that information required to be disclosed in reports filed or      submitted with the SEC is recorded, processed, and reported within the      time periods specified by the SEC, and is accumulated and communicated to      management, including the Chief Executive Officer and the Chief Financial      Officer, as appropriate to allow for timely decision regarding required      disclosure. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Changes      in Internal Controls: In the quarter ended March 31, 2008, the Company did      not make any significant changes in, nor take any corrective actions      regarding, its internal controls or other factors that could significantly      affect these controls. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PART      II. | OTHER INFORMATION |
|---------------|-------------------|

| Item      1. | Legal      proceedings. |
|--------------|-------------------------|

----

Index

| Item      1A. | Risk      factors. |
|---------------|--------------------|

| Item      2. | Unregistered sales of equity securities and use of      proceeds. |
|--------------|-------------------------------------------------------------------|

| Item      3. | Defaults upon seniorsecurities. |
|--------------|---------------------------------|

| Item      4. | Submission      of matters to a vote of security  holders. |
|--------------|------------------------------------------------------------|

| Item      5. | Other information. |
|--------------|--------------------|

| Item      6. | Exhibits and reports on Form8-K. |
|--------------|----------------------------------|

| (a) | Exhibits. |
|-----|-----------|

|   | 3.1 | Amended      Articles of Incorporation of Oregon Pacific Bancorp amended March 17,      2008. |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | 3.2 | Bylaws      of Oregon Pacific Bancorp (incorporated herein by reference to Exhibit      3(i) to Oregon Pacific Bancorp’s Form 10-K for the year ended December 31,      2002 filed with the Securities and Exchange Commission on March 31,      2003). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | 2003      Stock Incentive Plan (incorporated by reference to Exhibit 1 to Oregon      Pacific Bancorp’s Form DEF 14A filed with the Securities and Exchange      Commission on March 25, 2003). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Oregon      Pacific Banking Co. Deferred Compensation and Incentive Plan (incorporated      herein by reference to Exhibit 10.2 to Oregon Pacific Bancorp’s Form 10-K      for the year ended December 31, 2003 filed with the Securities and      Exchange Commission on March 30,2004). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification      of Chief Executive Officer pursuant to rule 13a-14(a) or Rule 15d-14(a)      and Section 302(a) of the Sarbanes-Oxley Act of  2002.** |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification      of Chief Financial Officer pursuant to rule 13a-14(a) or Rule 15d-14(a)      and Section 302(a) of the Sarbanes-Oxley Act of  2002.** |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002. ** |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|  (b) | On      February 14, 2008 a Form 8-K was filed under items 2.02 and      9.01 announcing 2007 fourth quarter and year end      earnings. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

SIGNATURES

|   | OREGON      PACIFIC BANCORP |
|--------|-----------------------------|
|   |                        |   |
|   |                        |   |
|   | By:                         | /s/ James P. Clark |
|   |                        |   |
|   |                        | James      P. Clark |
|   |                        | President,      Chief Executive Officer and Director (Chief Executive      Officer) |
|   |                        |   |
|   |                        |   |
|   | By:                         | /s/ Joanne Forsberg |
|   |                        |   |
|   |                        | Joanne      Forsberg |
|   |                        | Chief      Financial Officer and Corporate Secretary (Principal Financial      Officer) |

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