Net Income, Deposits Up for Community First Bank

Despite a slowing Central Oregon economy and 100 basis point decrease in the national prime rate, CFB's net income for 2007 increased 11.9% over 2006.

Prineville, OR - Prineville Bancorporation (OTTB: PNVL.OB), parent company for Community First Bank, reported today its results for the fourth quarter and year ended December 31, 2007.

• Net income of $418,000 for the fourth quarter of 2007
• Net income of $1,696,000 for the year ended December 31, 2007

Robin B. Freeman, President & CEO stated, "Net income for the fourth quarter was an increase of 7.2% from the fourth quarter of 2006, and net income for the full year 2007 was an 11.9% increase from the year ended December 31, 2006."

John Hajovsky, Executive Vice President  and Chief Operating Officer commented, "Our results reflect continued growth in loans and deposits, but our net interest margin has narrowed due to the impact of the decline in prime rate and the lag in re-pricing of deposit liabilities.  Highlights include":

• Net income per share of $.17 per share for the fourth quarter.
• Net income per share for the fourth quarter 2007 compares to $.18 for fourth quarter of 2006 and $.18 for the third quarter of 2007.
• Net income per share of $.68 for the year ended December 31, 2007.
• Net income per share for the year 2007 compares to $.74 for the year ended 2006.
• 2007 per share results are impacted by additional shares issued in December 2006.
• All outstanding shares and per share data have been retroactively adjusted to reflect the 5% stock dividend in December 2007 and the 2 for 1 stock split which occurred in August 2007.
• Total assets were $207.3 million as of December 31, 2007 - an increase of 18.5% from December 31, 2006 and 5.9% from September 30, 2007.
• Total deposits were $160.3 million as of December 31, 2007 - an increase of 12.7% from December 31, 2006 and 5.1% from September 30, 2007.
• Gross loans were $167.0 million as of December 31, 2007 - an increase of 23.1% from December 31, 2006 and 6.8% from September 30, 2007.

Freeman added "We are pleased with these results when considering a slowing Central Oregon economy and the 100 basis point drop in national prime rate over the past 4 months.  In addition these results are affected by our ongoing expansion and remodeling projects.  As previously reported, in September 2007 we opened our seventh branch in downtown Bend at Franklin Crossing and in December 2007, the drive-up facility for our eighth branch (third in Bend) began operations.  These new branches follow the February 2007 opening of a new full service branch in Redmond; a complete remodeling of the Greenwood Avenue branch in Bend; and an expansion/remodel of the Terrebonne branch.  The remodeling of our Prineville building is in process and completion is expected in March 2008."
 
Andy Phillips, Executive Vice President and Chief Credit Officer reported that "Our credit quality remains sound.  Non-performing assets, which include all loans past due 90 days or more, loans on non-accrual status, and other real estate owned, totaled 0.27% of loans at December 31, 2007.  This ratio is virtually unchanged from .26% as of September 30, 2007.  Loans past due 30 days or more totaled 1.09% of total loans.  The allowance for Loan Losses was 1.22% of total loans at December 31, 2007."

Prineville Bancorporation is the holding company for Community First Bank, which operates eight 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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For more information, please contact:

John Hajovsky
555 NW Third Street
Prineville, OR 97754
541-447-4106
hajovsky@MyCommunityFirst.com