CFB Announces Second Quarter Earnings Report and Stock Split

CFB approved a 2 for 1 stock split for shareholders of record as of July 31, 2007.

Prineville, OR - The Board of Directors of Prineville Bancorporation (OTC BB: PNVL.OB), parent company for Community First Bank, approved a 2 for 1 stock split for shareholders of record as of July 31, 2007. Each shareholder will receive one (1) additional share of stock for each share owned. 

Robin B. Freeman, President & CEO stated, "Our growth in assets and net income has led to a tripling of our stock price over the past three years and the Board of Directors believe that a stock split will create additional liquidity for shareholders and provide an opportunity for individual investors to participate in the long term growth of the company."

Freeman also reported that "we are pleased to report that net income for the second quarter was $476,000, an increase of 28% from the second quarter of 2006 and an increase of 33% from the first quarter of 2007.  Year-to-date net income was $834,000, an increase of 20% from the first six months of 2006."

On a per share basis net income was $.40 for the second quarter and $.71 for the first six months of 2007. 

John Hajovsky, Executive Vice President commented, "we are pleased with the continued improvement in earnings and financial results.  Highlights for the quarter include":

• Total assets were $194.0 million as of June 30, 2007
• Total assets increased 16.4% from one year ago (June 30, 2006) and 7.0% from March 31, 2007
• Deposits were $149.6 million as of June 30, 2007
• Deposits increased 6.2% from one year ago (June 30, 2006) and 6.4% from March 31, 2007
• Gross loans were $156.7 million as of June 30, 2007
• Gross loans increased 24.5% from one year ago (June 30, 2006) and 9.4% from March 31, 2007
• Net income per share and return on equity were effected by the sale of common shares in December 2006

Hajovsky added "while core deposit growth and the yield curve continue to be challenges and have impacted the net interest margin, our results reflect solid growth in both loans and deposits and improvement in efficiencies and return on assets."

Freeman added, "Our team is focused on supporting the communities of Central Oregon. Not only are we re-investing 100% of our local deposits back into Central Oregon, but we also continue to support numerous community and charitable organizations. In 2007 we have opened a new full service branch in Redmond; have completed the remodeling of the Greenwood Avenue branch in Bend; and anticipate opening the Franklin Crossing branch in downtown Bend in late July. In addition we are remodeling of our Terrebonne and Prineville branches which are scheduled for completion before year-end 2007." 

Prineville Bancorporation is the holding company for Community First Bank, which operates six bank branches located in Prineville, Bend, Redmond, La Pine, Terrebonne and Madras, Oregon, and a loan production office in Bend offering residential and commercial real estate loans. Residential mortgage services are also offered through all bank branches. In addition investment and trust services are offered through Community First Investments.

FORWARD-LOOKING STATEMENTS

The statements contained in this release that are not historical facts are forward-looking statements based upon management's current expectations and beliefs concerning future developments and their potential effect on Prineville Bancorporation. There can be no assurances that future developments affecting Prineville Bancorporation will be the same as those anticipated by management.

Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These risks and uncertainties include, but are not limited to: (1) competitive pressures in the banking and financial industries; (2) changes in interest rate environment; (3) general economic conditions, nationally, regionally, and in operating markets; (4) changes in regulatory environment; (5) changes in business conditions and inflation; (6) changes in securities markets; and (7) future credit loss experience.

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