**FORM      10-Q**

|  | **[X]** | **QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d)****OF                  THE SECURITIES EXCHANGE ACT OF                  1934** |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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

**OREGON      PACIFIC BANCORP**

*(Exact      name of Registrant as specified in its charter)*

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

**1355      Highway 101**

**Florence,      Oregon 97439**

*(Address      of principal executive offices)*

**(541)      997-7121**

*(Registrant’s      telephone number)*

----

**OREGON      PACIFIC BANCORP**

**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                                                  | 8-11 |
|                      |                                                                                                                 |                                                                                                                          |   |
|                      | Item                  2.                                                                                             | Management’s                  Discussion and Analysis of Financial                  Condition and Results of Operations | 12-18 |
|                      |                                                                                                                 |                                                                                                                          |   |
|                      | Item                  3.                                                                                             | Quantitive                  and Qualitive Disclosures about Market                  Risk                                      | 18 |
|                      |                                                                                                                 |                                                                                                                          |   |
|                      | Item                  4.                                                                                             | Controls                  and Procedures                                                                                      | 18-19 |
|                      |                                                                                                                 |                                                                                                                          |   |
| Part                  II. | Other                  Information                                                                                   | 19-20                                                                                                                         |
|                      | Signatures                                                                                                           | 21                                                                                                                            |
|                      | Exhibits                  and Certifications of Chief Executive                  Officer and Chief Financial Officer | 22-24                                                                                                                         |

----

| **PART                  1.          FINANCIAL                  INFORMATION**                                    |   |   |                                 |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------|--------|--------|
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| **Item                  1.                Financial                  Statements** |   |   |                                 |   |   |   |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| **OREGON                  PACIFIC BANCORP**                                                                                                                       |
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                                                  |
| (Unaudited)                                                                                                                                                       |
|                                                                                                                                                              |
|                                                                                                                                                              |   |   | SEPTEMBER                  30,  |   |   | DECEMBER                  31,  |   |
| ASSETS                                                                                                                                                            |   |   | 2005                                 |   |   | 2004 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Cash                  and due from banks                                                                                                                          |   | $      | 5,358,921                            |   | $      | 4,341,385 |   |
| Interest-bearing                  deposits in banks                                                                                                               |   |   | 5,965,889                            |   |   | 873,806 |   |
| Available-for-sale                  securities, at fair value                                                                                                     |   |   | 12,012,185                           |   |   | 15,424,419 |   |
| Restricted                  equity securities                                                                                                                     |   |   | 1,023,100                            |   |   | 1,020,100 |   |
| Loans                  held for sale                                                                                                                              |   |   | 1,389,945                            |   |   | 1,016,087 |   |
| Loans,                  net of allowance for loan                                                                                                                 |   |   |                                 |   |   |   |   |
| losses                  and unearned income                                                                                                                       |   |   | 117,613,030                          |   |   | 108,707,038 |   |
| Premises                  & equipment, net                                                                                                                    |   |   | 5,007,045                            |   |   | 5,188,594 |   |
| Other                  real estate owned                                                                                                                          |   |   | -                                    |   |   | - |   |
| Accrued                  interest and other assets                                                                                                                |   |   | 1,894,820                            |   |   | 1,677,458 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Total                  assets                                                                                                                                     |   | $      | 150,264,935                          |   | $      | 138,248,887 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                             |   |   |                                 |   |   |   |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Deposits                                                                                                                                                          |   |   |                                 |   |   |   |   |
| Demand                  deposits                                                                                                                                  |   | $      | 31,849,061                           |   | $      | 26,591,202 |   |
| Interest-bearing                  demand deposits                                                                                                                 |   |   | 43,033,556                           |   |   | 42,189,535 |   |
| Savings                  deposits                                                                                                                                 |   |   | 17,983,171                           |   |   | 19,362,923 |   |
| Time                  certificate accounts:                                                                                                                       |   |   |                                 |   |   |   |   |
| $100,000                  or more                                                                                                                                 |   |   | 14,510,945                           |   |   | 10,072,427 |   |
| Other                  time certificate accounts                                                                                                                  |   |   | 15,996,055                           |   |   | 12,844,634 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Total                  deposits                                                                                                                                   |   |   | 123,372,788                          |   |   | 111,060,721 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Other                  liabilities                                                                                                                                |   |   |                                 |   |   |   |   |
| Federal                  Home Loan Bank borrowings                                                                                                                |   |   | 10,426,556                           |   |   | 11,867,806 |   |
| Floating                  rate Junior Subordinated Deferrable Interest                                                                                            |   |   |                                 |   |   |   |   |
| Debentures                  (Trust Preferred Securities)                                                                                                          |   |   | 4,124,000                            |   |   | 4,124,000 |   |
| Deferred                  compensation liability                                                                                                                  |   |   | 1,396,602                            |   |   | 1,102,953 |   |
| Accrued                  interest and other liabilities                                                                                                           |   |   | 1,067,560                            |   |   | 1,201,110 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Total                  liabilities                                                                                                                                |   |   | 140,387,506                          |   |   | 129,356,590 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Stockholders'                  equity                                                                                                                             |   |   |                                 |   |   |   |   |
| Common                  stock, no par value, 10,000,000 shares                                                                                                    |   |   |                                 |   |   |   |   |
| authorized                  with 2,159,285 and 2,148,616 issued                                                                                                   |   |   |                                 |   |   |   |   |
| and                  outstanding at September 30, 2005 and                                                                                                        |   |   |                                 |   |   |   |   |
| December                  31, 2004, respectively                                                                                                                  |   |   | 4,793,847                            |   |   | 4,698,162 |   |
| Undivided                  profits                                                                                                                                |   |   | 5,018,717                            |   |   | 3,983,420 |   |
| Accumulated                  other comprehensive                                                                                                                  |   |   |                                 |   |   |   |   |
| income,                  net of tax                                                                                                                               |   |   | 64,865                               |   |   | 210,715 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Total                  stockholders' equity                                                                                                                       |   |   | 9,877,429                            |   |   | 8,892,297 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| Total                  liabilities and stockholders' equity                                                                                                       |   | $      | 150,264,935                          |   | $      | 138,248,887 |   |
|                                                                                                                                                              |   |   |                                 |   |   |   |   |
| See                  accompanying notes                                                                                                                           |   |   |                                 |   |   |   |   |

----

| **OREGON                PACIFIC                BANCORP**                      |
|-------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF INCOME AND COMPREHENSIVE INCOME** |
| (Unaudited)                                                                   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   | Three                Months Ended |   |   | Nine                Months Ended |   |
|                                                                          |   |   | September                30,  |   |   | September                30,  |   |
|                                                                          |   |   | 2005 |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST                INCOME                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                and fees on loans                                     |   | $ | 2,386,065 |   | $ | 1,809,068 |   | $ | 6,945,467 |   | $ | 5,168,311 |   |
| Interest                on investment securities:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.                Teasuries and agencies                                    |   |   | 37,244 |   |   | 47,566 |   |   | 125,164 |   |   | 166,825 |   |
| State                and political subdivisions                               |   |   | 80,160 |   |   | 84,156 |   |   | 241,133 |   |   | 240,873 |   |
| Corporate                and other investments                                |   |   | 12,238 |   |   | 37,951 |   |   | 64,899 |   |   | 139,786 |   |
| Interest                on deposits in banks                                  |   |   | 63,705 |   |   | 31,697 |   |   | 110,600 |   |   | 76,083 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest income                                          |   |   | 2,579,412 |   |   | 2,010,438 |   |   | 7,487,263 |   |   | 5,791,878 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST                EXPENSE                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                demand deposits                               |   |   | 195,796 |   |   | 88,172 |   |   | 485,790 |   |   | 262,314 |   |
| Savings                deposits                                               |   |   | 24,554 |   |   | 24,345 |   |   | 73,357 |   |   | 83,416 |   |
| Time                deposits                                                  |   |   | 224,602 |   |   | 110,378 |   |   | 533,398 |   |   | 325,447 |   |
| Other                borrowings                                               |   |   | 171,050 |   |   | 158,353 |   |   | 522,604 |   |   | 402,809 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest expense                                         |   |   | 616,002 |   |   | 381,248 |   |   | 1,615,149 |   |   | 1,073,986 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                            |   |   | 1,963,410 |   |   | 1,629,190 |   |   | 5,872,114 |   |   | 4,717,892 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                (BENEFIT) FOR LOAN LOSSES                            |   |   | 30,000 |   |   | - |   |   | 245,000 |   |   | (360,000 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income after                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provision                for loan losses                                      |   |   | 1,933,410 |   |   | 1,629,190 |   |   | 5,627,114 |   |   | 5,077,892 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NONINTEREST                INCOME                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage                loan sales and servicing fees                         |   |   | 194,024 |   |   | 170,421 |   |   | 479,696 |   |   | 558,375 |   |
| Service                charges and fees                                       |   |   | 265,000 |   |   | 234,251 |   |   | 736,603 |   |   | 587,690 |   |
| Trust                fee income                                               |   |   | 156,701 |   |   | 120,985 |   |   | 458,873 |   |   | 388,794 |   |
| Investment                sales commissions                                   |   |   | 36,486 |   |   | 24,368 |   |   | 100,399 |   |   | 88,307 |   |
| Other                income                                                   |   |   | 236,714 |   |   | 38,576 |   |   | 363,425 |   |   | 116,554 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                noninterest income                                       |   |   | 888,925 |   |   | 588,601 |   |   | 2,138,996 |   |   | 1,739,720 |   |

----

| **OREGON                    PACIFIC BANCORP**                                     |
|-----------------------------------------------------------------------------------|
| **CONSOLIDATED                    STATEMENTS OF INCOME AND COMPREHENSIVE INCOME** |
| (Unaudited)                                                                       |
| (continued)                                                                       |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   | Three                    Months Ended |   |   | Nine                    Months Ended |   |
|                                                                              |   |   | September                    30, |   |   | September                    30, |   |
|                                                                              |   |   | 2005 |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NONINTEREST                    EXPENSE                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                    and benefits                                          |   | $ | 1,140,331 |   | $ | 1,174,110 |   | $ | 3,369,119 |   | $ | 3,580,025 |   |
| Occupancy                                                                         |   |   | 233,991 |   |   | 222,774 |   |   | 664,066 |   |   | 623,261 |   |
| Supplies                                                                          |   |   | 42,958 |   |   | 42,091 |   |   | 131,790 |   |   | 161,262 |   |
| Postage                    and freight                                            |   |   | 21,603 |   |   | 21,683 |   |   | 71,028 |   |   | 68,684 |   |
| Outside                    services                                               |   |   | 168,615 |   |   | 140,234 |   |   | 500,554 |   |   | 439,646 |   |
| Advertising                                                                       |   |   | 27,222 |   |   | 36,351 |   |   | 78,454 |   |   | 113,476 |   |
| Loan                    collection expense                                        |   |   | 12,471 |   |   | 26,679 |   |   | 41,014 |   |   | 94,667 |   |
| Securities                    and trust department expenses                       |   |   | 40,424 |   |   | 41,540 |   |   | 125,356 |   |   | 105,938 |   |
| Other                    expenses                                                 |   |   | 181,568 |   |   | 162,504 |   |   | 505,882 |   |   | 723,407 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    noninterest expense                                      |   |   | 1,869,183 |   |   | 1,867,966 |   |   | 5,487,263 |   |   | 5,910,366 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                    BEFORE INCOME TAXES                                     |   |   | 953,152 |   |   | 349,825 |   |   | 2,278,847 |   |   | 907,246 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                    FOR INCOME TAXES                                     |   |   | 370,596 |   |   | 109,182 |   |   | 900,381 |   |   | 280,483 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                    INCOME                                                     |   |   | 582,556 |   |   | 240,643 |   |   | 1,378,466 |   |   | 626,763 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                    COMPREHENSIVE INCOME                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                    holding gain/(loss)                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| arising                    during the period, net of tax                          |   |   | (67,830 | ) |   | 86,389 |   |   | (145,850 | ) |   | (118,480 | ) |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                    INCOME                                           |   | $ | 514,726 |   | $ | 327,032 |   | $ | 1,232,616 |   | $ | 508,283 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS                    PER SHARE OF                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMMON                    STOCK                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                    earnings per share                                       |   | $ | 0.27 |   | $ | 0.11 |   | $ | 0.64 |   | $ | 0.29 |   |
| Diluted                    earnings per share                                     |   | $ | 0.27 |   | $ | 0.11 |   | $ | 0.64 |   | $ | 0.29 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                    AVERAGE COMMON                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES                    OUTSTANDING                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                             |   |   | 2,157,123 |   |   | 2,185,943 |   |   | 2,152,399 |   |   | 2,180,632 |   |
| Diluted                                                                           |   |   | 2,166,789 |   |   | 2,189,087 |   |   | 2,158,007 |   |   | 2,182,205 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                    accompanying notes                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **OREGON                PACIFIC                BANCORP**                      |
|-------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY** |
| (Unaudited)                                                                   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   | Other |   |   | Total |   |
|                                                                          |   |   | Common                Stock |   |   | Undivided |   |   | Comprehensive |   |   | Stockholders' |   |
|                                                                          |   |   | Shares |   |   | Amount |   |   | Profits |   |   | Income |   |   | Equity |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                December 31, 2003                                     |   |   | 2,173,592 |   | $ | 4,894,536 |   | $ | 3,331,170 |   | $ | 409,852 |   | $ | 8,635,558 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                acquired in stock repurchase plan                       |   |   | (46,275 | ) |   | (344,714 | ) |   | - |   |   | - |   |   | (344,714 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                dividends paid                                            |   |   | - |   |   | - |   |   | (266,130 | ) |   | - |   |   | (266,130 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                reinvested in stock                                  |   |   | 21,299 |   |   | 148,340 |   |   | (148,340 | ) |   | - |   |   | - |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income and comprehensive income                            |   |   | - |   |   | - |   |   | 1,066,720 |   |   | (199,137 | ) |   | 867,583 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                December 31, 2004                                     |   |   | 2,148,616 |   | $ | 4,698,162 |   | $ | 3,983,420 |   | $ | 210,715 |   | $ | 8,892,297 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                acquired in stock repurchase plan                       |   |   | (4,300 | ) |   | (31,610 | ) |   | - |   |   | - |   |   | (31,610 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                of nonregistered stock                                    |   |   | 137 |   |   | 1,003 |   |   | - |   |   | - |   |   | 1,003 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                dividends paid                                            |   |   | - |   |   | - |   |   | (216,877 | ) |   | - |   |   | (216,877 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                reinvested in stock                                  |   |   | 14,832 |   |   | 126,292 |   |   | (126,292 | ) |   | - |   |   | - |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income and comprehensive income                            |   |   | - |   |   | - |   |   | 1,378,466 |   |   | (145,850 | ) |   | 1,232,616 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2005                                    |   |   | 2,159,285 |   | $ | 4,793,847 |   | $ | 5,018,717 |   | $ | 64,865 |   | $ | 9,877,429 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  See              accompanying notes                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **OREGON                  PACIFIC BANCORP**                                                                |
|------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                 |
| (Unaudited)                                                                                                |
|                                                                                                       |   |   |   |   |   |   |   |
|                                                                                                       |   |   | Nine                  Months Ended September 30, |   |
|                                                                                                       |   |   | 2005 |   |   | 2004 |   |
|                                                                                                       |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES                                                      |   |   |   |   |   |   |   |
| Net                  income                                                                                |   | $ | 1,378,466 |   | $ | 626,763 |   |
| Adjustments                  to reconcile net income to net cash                                           |   |   |   |   |   |   |   |
| from                  operating activities:                                                                |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                             |   |   | 364,563 |   |   | 363,120 |   |
| Provision                  (benefit) for loan losses                                                       |   |   | 245,000 |   |   | (360,000 | ) |
| Federal                  Home Loan Bank stock dividends                                                    |   |   | (3,000 | ) |   | (21,000 | ) |
| Net                  change in mortgage loans held-for-sale                                                |   |   | (373,858 | ) |   | 2,480,216 |   |
| Loss                  (gain) on disposition of premises, equipment, and other real                  estate |   |   | 3,215 |   |   | (22,725 | ) |
| Net                  increase in accrued interest and other assets                                         |   |   | (120,130 | ) |   | (142,752 | ) |
| Net                  increase (decrease) in accrued interest and other                  liabilities        |   |   | 160,099 |   |   | (556,527 | ) |
|                                                                                                       |   |   |   |   |   |   |   |
| Net                  cash from operating activities                                                        |   |   | 1,654,355 |   |   | 2,367,095 |   |
|                                                                                                       |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                                                      |   |   |   |   |   |   |   |
| Proceeds                  from sales and maturities of available-for-sale securities                       |   |   | 3,158,836 |   |   | 6,776,637 |   |
| Purchases                  of available-for-sale-securities                                                |   |   | - |   |   | (5,084,907 | ) |
| Net                  increase in interest-bearing deposits in banks                                        |   |   | (5,092,083 | ) |   | (2,978,312 | ) |
| Loans                  originated, net of principal repayments                                             |   |   | (9,150,992 | ) |   | (17,383,870 | ) |
| Purchase                  of premises and equipment                                                        |   |   | (175,913 | ) |   | (756,827 | ) |
| Proceeds                  from sale of other real estate                                                   |   |   | - |   |   | 40,599 |   |
|                                                                                                       |   |   |   |   |   |   |   |
| Net                  cash from investing activities                                                        |   |   | (11,260,152 | ) |   | (19,386,680 | ) |
|                                                                                                       |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                                                      |   |   |   |   |   |   |   |
| Net                  increase in demand and savings deposit accounts                                       |   |   | 4,722,128 |   |   | 12,494,374 |   |
| Net                  increase in time deposits                                                             |   |   | 7,589,939 |   |   | 1,455,109 |   |
| Proceeds                  from Federal Home Loan Bank borrowings                                           |   |   | 4,900,000 |   |   | 4,000,000 |   |
| Repayment                  of Federal Home Loan Bank borrowings                                            |   |   | (6,341,250 | ) |   | (41,250 | ) |
| Proceeds                  from other bank borrowing                                                        |   |   | - |   |   | 124,000 |   |
| Cash                  dividends paid                                                                       |   |   | (216,877 | ) |   | (196,503 | ) |
| Shares                  acquired in stock repurchase plan                                                  |   |   | (31,610 | ) |   | - |   |
| Proceeds                  from issuance of common stock                                                    |   |   | 1,003 |   |   | - |   |
|                                                                                                       |   |   |   |   |   |   |   |
| Net                  cash from financing activities                                                        |   |   | 10,623,333 |   |   | 17,835,730 |   |
|                                                                                                       |   |   |   |   |   |   |   |
| NET                  INCREASE IN CASH AND CASH EQUIVALENTS                                                 |   |   | 1,017,536 |   |   | 816,145 |   |
|                                                                                                       |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, beginning of period                                            |   | $ | 4,341,385 |   | $ | 4,916,985 |   |
|                                                                                                       |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, end of period                                                  |   | $ | 5,358,921 |   | $ | 5,733,130 |   |
|                                                                                                       |   |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |   |
| SCHEDULE                  OF NONCASH ACTIVITIES                                                            |   |   |   |   |   |   |   |
| Stock                  dividends reinvested                                                                |   | $ | 126,292 |   | $ | 108,517 |   |
| Additions                  to other real estate owned                                                      |   | $ | - |   | $ | 251,928 |   |
| Change                  in fair value of AFS securities, net of tax                                        |   | $ | (145,850 | ) | $ | (118,480 | ) |
|                                                                                                       |   |   |   |   |   |   |   |
| See                  accompanying notes                                                                    |   |   |   |   |   |   |   |

----

Oregon      Pacific Banking Co.

----

|                                                |   |      |       |       |   | Gross                      |   | Gross                      |    |            |   |
|-----------------------------------------------------|--------|-----------|------------|------------|--------|----------------------------|--------|----------------------------|---------|-----------------|--------|
|                                                |   |      |       |       |   | Unrealized                 |   | Unrealized                 |    |            |   |
|                                                |   |      |       | Gross      |   | Losses                     |   | Losses                     |    |  Estimated |   |
|                                                |   | Amortized |       | Unrealized |   | Less                  than |   | More                  than |    |  Fair      |   |
|                                                |   | Cost      |       | Gains      |   | 12                  Months |   | 12                  Months |    |  Value     |   |
| September                  30, 2005:                |   |      |       |       |   |                       |   |                       |    |            |   |
|                                                |   |      |       |       |   |                       |   |                       |    |            |   |
| U.S.                  Treasury and agencies         |   | $         | 4,000,000  |       | $      | -                          |   | $                          | (60,938 | )               | $      | - |   | $ | 3,939,062 |   |
| State                  and political subdivisions   |   |      | 7,190,324  |       |   | 157,677                    |   |                       | (5,411  | )               |   | (2,871 | ) |   | 7,339,719 |   |
| Corporate                  notes                    |   |      | 713,753    |       |   | 19,651                     |   |                       | -       |            |   | - |   |   | 733,404 |   |
|                                                |   |      |       |       |   |                       |   |                       |    |            |   |   |   |   |   |   |
|                                                |   | $         | 11,904,077 |       | $      | 177,328                    |   | $                          | (66,349 | )               | $      | (2,871 | ) | $ | 12,012,185 |   |
|                                                |   |      |       |       |   |                       |   |                       |    |            |   |   |   |   |   |   |
| December                  31, 2004:                 |   |      |       |       |   |                       |   |                       |    |            |   |   |   |   |   |   |
|                                                |   |      |       |       |   |                       |   |                       |    |            |   |   |   |   |   |   |
| U.S.                    Treasury and agencies       |   | $         | 5,999,145  |       | $      | -                          |   | $                          | (16,296 | )               | $      | - |   | $ | 5,982,849 |   |
| State                    and political subdivisions |   |      | 7,481,028  |       |   | 304,683                    |   |                       | (1,562  | )               |   | - |   |   | 7,784,149 |   |
| Corporate                notes                      |   |      | 1,593,054  |       |   | 64,367                     |   |                       | -       |            |   | - |   |   | 1,657,421 |   |
|                                                |   |      |       |       |   |                       |   |                       |    |            |   |   |   |   |   |   |
|                                                |   | $         | 15,073,227 |       | $      | 369,050                    |   | $                          | (17,858 | )               | $      | - |   | $ | 15,424,419 |   |

|                                       |   | SEPT.                  30, 2005 |        | DEC.                  31, 2004 |   |
|--------------------------------------------|--------|---------------------------------|-------------|--------------------------------|--------|
|                                       |   |                            |        |                           |   |
| Real                  estate               |   | $                               | 17,669,689  |                           | $      | 16,821,917 |   |
| Commercial                                 |   |                            | 95,110,180  |                           |   | 87,338,080 |   |
| Installment                                |   |                            | 7,164,026   |                           |   | 6,644,550 |   |
| Overdrafts                                 |   |                            | 57,402      |                           |   | 51,564 |   |
|                                       |   |                            |        |                           |   |   |   |
|                                       |   |                            | 120,001,297 |                           |   | 110,856,111 |   |
| Allowance                  for loan losses |   |                            | (1,886,772  | )                              |   | (1,640,060 | ) |
| Unearned                  loan fees        |   |                            | (501,495    | )                              |   | (509,013 | ) |
|                                       |   | $                               | 117,613,030 |                           | $      | 108,707,038 |   |

----

|                                              |   | SEPT.                  30, 2005 |      | SEPT.                  30, 2004 |   |
|---------------------------------------------------|--------|---------------------------------|-----------|---------------------------------|--------|
|                                              |   |                            |      |                            |   |
| Balance,                  beginning of the period |   | $                               | 1,640,060 |                            | $      | 1,315,955 |   |
| Provision                  for losses             |   |                            | 245,000   |                            |   | (360,000 | ) |
| Losses                                            |   |                            | (2,023    | )                               |   | (40,730 | ) |
| Recoveries                                        |   |                            | 3,735     |                            |   | 720,075 |   |
|                                              |   |                            |      |                            |   |   |   |
| Balance,                  end of period           |   | $                               | 1,886,772 |                            | $      | 1,635,300 |   |

* *

----

|                                                        |   | Three                  Months Ended |    | Nine                  Months Ended |   |
|-------------------------------------------------------------|--------|-------------------------------------|---------|------------------------------------|--------|
|                                                        |   | September                  30,      |    | September                  30,     |   |
|                                                        |   | 2005                                |    | 2004                               |   | 2005 |   | 2004 |   |
|                                                        |   |                                |    |                               |   |   |   |   |   |
| Net                  earnings, as reported                  |   | $                                   | 582,556 |                               | $      | 240,643 |   | $ | 1,378,466 |   | $ | 626,763 |   |
| Deduct:                  Total stock-based employee         |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| compensation                  expense determined            |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| under                  the fair value-based method          |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| for                  all awards, net of related tax effects |   |                                | (1,212  | )                                  |   | (120 | ) |   | (3,636 | ) |   | (359 | ) |
|                                                        |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| Pro                  forma net earnings                     |   | $                                   | 581,344 |                               | $      | 240,523 |   | $ | 1,374,830 |   | $ | 626,404 |   |
|                                                        |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| Basic                  earnings per common share:           |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| As                  reported                                |   | $                                   | 0.27    |                               | $      | 0.11 |   | $ | 0.64 |   | $ | 0.29 |   |
| Pro                  forma                                  |   | $                                   | 0.27    |                               | $      | 0.11 |   | $ | 0.64 |   | $ | 0.29 |   |
|                                                        |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| Diluted                  earnings per common share:         |   |                                |    |                               |   |   |   |   |   |   |   |   |   |
| As                  reported                                |   | $                                   | 0.27    |                               | $      | 0.11 |   | $ | 0.64 |   | $ | 0.29 |   |
| Pro                  forma                                  |   | $                                   | 0.27    |                               | $      | 0.11 |   | $ | 0.64 |   | $ | 0.29 |   |

|                                      |   | 2005   |   | 2004   |
|--------------------------------------|--------|--------|--------|--------|
|                                 |   |   |   |   |
| Dividend                yield        |   | 2.44%  |   | 2.25%  |
| Expected                life (years) |   | 7.5    |   | 7.5    |
| Expected                volatility   |   | 14.39% |   | 19.72% |
| Risk-free                rate        |   | 4.50%  |   | 3.75%  |

----

**Item      2.   Management’s Discussion and Analysis of      Financial Condition and Results of Operations**

**Critical      Accounting Policies and Estimates**

**Overview**
** **

----

| ·   | a                reimbursement received and                recognized in                the third quarter from its insurance company for a litigation settlement                initially paid                and expensed                in                the second quarter of 2004 that increased earnings per share by                $0.05; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                collection during the first quarter of 2005 of interest and fees                related                to a                charged-off                loan (for which a recovery to the allowance for loan losses was recorded                in 2004); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an                increase in net                interest                income                due to an upward movement of interest rates on variable interest                loans,                partially offset by an                increase in deposit interest expense                for the same reason; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                effects of reduced staffing                at                the end of the third quarter of 2004 primarily in the real estate                mortgage                loan department due to decreased refinancing activity,                and; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                closing of the Sutherlin branch on December 31,                2004. |
|--------------------|-----------------------------------------------------------------------------------------|

**Material      Changes in Financial Condition**

***Investment***
***s***

***Loans***

***Non-performing      Assets***

----

***Allowance      for Loan Losses***

***Deposits***

***Borrowings***

***Off-Balance      Sheet Items — Commitments/Letters of Credit***

----

**Results      of Operations**

***Net      interest income***

**Table      I**

*Average      Balances and Average Rates Earned and Paid. *

----

|                                                             |   |   | Nine                Months Ended Sept. 30, 2005 |   |   | Nine                Months Ended Sept. 30, 2004 |   |   | 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                (1)                                         |   | $      | 116,404                                         |   | $      | 6,568                                           |   |   | 7.52                               | %      | $ | 95,623 |   | $ | 5,168 |   |   | 7.21 | % | $ | 1,129 |   | $ | 271 |   | $ | 1400 |   |
| Investment                securities                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                securities                                |   |   | 6,230                                           |   |   | 195                                             |   |   | 4.17                               | %      |   | 8,139 |   |   | 324 |   |   | 5.31 | % |   | (76 | ) |   | (53 | ) |   | (129 | ) |
| Nontaxable                securities (2)                         |   |   | 7,211                                           |   |   | 358                                             |   |   | 6.62                               | %      |   | 6,524 |   |   | 338 |   |   | 6.91 | % |   | 36 |   |   | (16 | ) |   | 20 |   |
| Interest-earning                balances due                     |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from                banks                                        |   |   | 4,769                                           |   |   | 111                                             |   |   | 3.10                               | %      |   | 9,614 |   |   | 76 |   |   | 1.05 | % |   | (38 | ) |   | 73 |   |   | 35 |   |
| Total                interest-earning                            |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets                                                      |   |   | 134,614                                         |   |   | 7,232                                           |   |   | 7.16                               | %      |   | 119,900 |   |   | 5,906 |   |   | 6.57 | % |   | 1,051 |   |   | 275 |   |   | 1326 |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks                           |   |   | 4,609                                           |   |   |                                            |   |   |                               |   |   | 5,230 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Premises                and equipment, net                       |   |   | 5,117                                           |   |   |                                            |   |   |                               |   |   | 5,162 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                real estate                                 |   |   | 0                                               |   |   |                                            |   |   |                               |   |   | 114 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan                loss allowance                               |   |   | (1,806                                          | )      |   |                                            |   |   |                               |   |   | (1,528 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                assets                                      |   |   | 743                                             |   |   |                                            |   |   |                               |   |   | 2,341 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   | 2,693                                           |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                assets                                      |   | $      | 145,970                                         |   |   |                                            |   |   |                               |   | $ | 131,219 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                     |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                checking and                     |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| savings                accounts                                  |   | $      | 61,881                                          |   | $      | 559                                             |   |   | 1.20                               | %      | $ | 59,463 |   | $ | 346 |   |   | 0.78 | % | $ | 14 |   | $ | 195 |   | $ | 209 |   |
| Time                deposit and IRA accounts                     |   |   | 25,884                                          |   |   | 533                                             |   |   | 2.75                               | %      |   | 20,359 |   |   | 325 |   |   | 2.13 | % |   | 92 |   |   | 120 |   |   | 212 |   |
| Borrowed                funds                                    |   |   | 15,376                                          |   |   | 523                                             |   |   | 4.54                               | %      |   | 13,679 |   |   | 403 |   |   | 3.93 | % |   | 50 |   |   | 70 |   |   | 120 |   |
| Total                interest-bearing                            |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                                                 |   |   | 103,141                                         |   |   | 1,615                                           |   |   | 2.08                               | %      |   | 93,501 |   |   | 1,074 |   |   | 1.53 | % |   | 156 |   |   | 385 |   |   | 541 |   |
| Noninterest-bearing                                              |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| deposits                                                    |   |   | 30,768                                          |   |   |                                            |   |   |                               |   |   | 26,739 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                liabilities                                 |   |   | 2,693                                           |   |   |                                            |   |   |                               |   |   | 2,258 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                liabilities                            |   |   | 136,602                                         |   |   |                                            |   |   |                               |   |   | 122,498 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’                equity                        |   |   | 9,368                                           |   |   |                                            |   |   |                               |   |   | 8,721 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                liabilities and share-                      |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| holders’                equity                        |   | $      | 145,970                                         |   |   |                                            |   |   |                               |   | $ | 131,219 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                               |   |   |                                            |   | $      | 5,617                                           |   |   |                               |   |   |   |   | $ | 4,832 |   |   |   |   | $ | 895 |   | $ | (110 | ) | $ | 785 |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest spread                               |   |   |                                            |   |   |                                            |   |   | 5.08                               | %      |   |   |   |   |   |   |   | 5.04 | % |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest expense to average                   |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning                assets                                    |   |   |                                            |   |   |                                            |   |   | 1.60                               | %      |   |   |   |   |   |   |   | 1.19 | % |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin                               |   |   |                                            |   |   |                                            |   |   | 5.56                               | %      |   |   |   |   |   |   |   | 5.37 | % |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1)                 Includes                loan fees        |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2)                 On                a tax-equivalent basis |   |   |                                            |   |   |                                            |   |   |                               |   |   |   |   |

----

***Provision      for Loan Loss***

***Noninterest      Income***

***Noninterest      Expense***

**Liquidity      and Capital Resources**

***Shareholders’      Equity***

***Liquidity***

----

**Item      3. ****Quantitive      and Qualitive Disclosures about Market Risk**

**Item      4.  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 September 30, 2005. Based on this                evaluation, the Chief Executive Officer and the Chief Financial Officer                each concludes that as of September 30, 2005, 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 September 30, 2005, 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Disclosure      Controls and Internal Controls.**

----

**Limitations      on the Effectiveness of Controls**

**PART      2.** **OTHER      INFORMATION**

**Item      1.**
**Legal      proceedings.**

**Item      2.**
**Unregistered      sales of equity securities and use of proceeds.**

**Item      3.**
**Defaults      upon senior securities.**

**Item      4.**
**Submission      of matters to a vote of security holders.**

**Item      5.**
**Other      information.**

**Item      6.**
**Exhibits      and reports on Form 8-K.**

| 3.1   | Articles                of Incorporation 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). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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.** |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|         |                                                                   |                                              |
|--------------|------------------------------------------------------------------------|---------------------------------------------------|
|         | OREGON              PACIFIC BANCORP                                    |
|    |                                                              |                                         |
|         | By:                                                          | /s/                Thomas                K. Grove |
|         |                                                                        |
|         | Thomas                K. Grove                                         |
|         | President,                Chief Executive Officer                      |
|         | And                Director (*Chief                Executive Officer)* |

|         |                                                 |                               |
|--------------|------------------------------------------------------|------------------------------------|
|         |                                                 |
|    |                                            |                          |
|         | By:                                        | /s/                Joanne Forsberg |
|         |                                                      |
|         | Joanne                Forsberg                       |
|         | Secretary                and Chief Financial Officer |
|         | (*Principal                Financial Officer)*       |