Statement of Condition

Comparative Balance Sheet December 31

ASSETS	2007	2006
Cash and due from banks	$5,618,135.44	$6,890,933.15
Federal funds sold	0.00	0.00
Investments	20,779,683.72	23,547,772.95
Loans and discounts	151,252,197.09	132,255,607.06
Less loan loss reserve	(2,300,261.15)	(2,011,317.40)
Fixed assets	2,168,628.87	2,280,792.42
Other assets	5,703,136.97	5,868,051.43
Total Assets	183,221,520.94	168,831,839.61
LIABILITIES
Deposits: Non-interest bearing	28,746,463.31	34,102,829.23
Deposits: Interest bearing	100,980,735.60	90,745,644.07
Federal funds purchased	4,725,000.00	0.00
FHLB borrowings	27,500,000.00	24,000,000.00
Other liabilities	2,626,777.29	2,799,312.35
Total Liabilites	164,578,976.20	151,647,785.65
EQUITY
Capital stock	700,000.00	700,000.00
Surplus	9,300,000.00	9,300,000.00
Undivided profits	8,675,535.59	7,364,838.37
Unrealized securities holding gains (losses)	(32,990.85)	(180,784.41)
Total Equity	18,642,544.74	17,184,053.96
Total Liabilities and Equity	183,221,520.94	168,831,839.61

Loans and Deposits by Branch

LOANS	2007	2006
Main Branch	113,463,535.88	100,903,451.10
North Valley Branch	11,229,169.82	8,046,838.71
Blodgett View Branch	7,689,708.89	2,070,100.00
Corvallis Branch	18,869,782.50	21,235,217.25
DEPOSITS
Main Branch	103,522,300.44	99,938,532.94
North Valley Branch	7,682,396.74	7,044,111.15
Blodgett View Branch	5,171,462.71	4,675,795.14
Corvallis Branch	13,351,039.02	13,190,034.07