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COLUMBIA BANKING SYSTEM TO ACQUIRE FIRST AMERICAN STATE BANK

 COLUMBIA BANKING SYSTEM TO ACQUIRE FIRST AMERICAN STATE BANK
 BELLEVUE, Wash., Oct. 8 /PRNewswire/ -- Columbia Banking System Inc. (NASDAQ: COLB) and First American State Bank have signed a letter of intent for Columbia Banking System to acquire First American State Bank. First American State Bank is headquartered in Centralia and has an office in Bellevue.
 The announcement was made today by Arnold G. Espe, chairman of Columbia Banking System and its principal subsidiary, Columbia Bank, FSB. Columbia Bank is a full-service federal savings bank with four branch offices in western Washington -- one in Bellevue, two in Longview and one in Woodland.
 Under the terms of the letter of intent, Columbia Banking System will pay 150 percent of First American State Bank's adjusted equity capital as of Sept. 30. First American shareholders will have the option to take Columbia Banking Systems' common stock or cash. At least 55 percent of the purchase price is expected to be paid in the form of stock. Under certain circumstances, the entire purchase price could be cash. The transaction also is subject to negotiation of a definitive agreement and corporate and regulatory approval.
 "We are pleased that this will be our first acquisition of a commercial bank," said Espe. "First American State Bank is highly regarded and has a significant presence in the Centralia area. We look forward to becoming part of the Centralia community and expanding our Bellevue operations.
 "We anticipate the purchase will take six months to complete," Espe said. "We expect the transaction to go smoothly."
 "We see this acquisition as an excellent means to be part of a respected and growing Washington state community bank," said David Upham, First American's president and chief executive officer. "We are enthusiastic about having the opportunity to expand our capabilities and be part of the Columbia Bank team."
 Founded in 1981 by a group of local investors in the Centralia/Chehalis market, First American State Bank currently has assets of approximately $30 million. As of Sept. 30, deposits totaled $26.4 million, and loans were more than $16.6 million. At that time, the bank reported year-to-date net income of $235,000. The bank presently is owned by more than 350 stockholders.
 First American State Bank currently operates from its headquarters at 1100 N. Harrison Ave., in Centralia, and its branch at 12000 NE 8th in Bellevue.
 Columbia Banking System, which had assets of approximately $130 million at Sept. 30, recently completed an $11-million public offering of convertible notes and common stock. It is traded on NASDAQ (COLB). Capital raised from the offering will be used to fund the First American State Bank acquisition.
 -0- 10/8/92
 /CONTACT: Gayle Cloud of Cloud Public Relations, 206-453-5583, for Columbia Banking System; or Mike Dunn of Columbia Bank, 206-646-5373; or David Upham of First American State Bank, 206-451-2125/
 (COLB) CO: Columbia Banking System Inc.; Columbia Bank, FSB; First American
 State Bank ST: Washington IN: FIN SU: TNM


SC-JH -- SE005 -- 8024 10/08/92 16:00 EDT
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Publication:PR Newswire
Date:Oct 8, 1992
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