VRB Bancorp Announces 2nd QuarterEarnings.

ROGUE RIVER, Ore.--(BUSINESS WIRE)--July 9, 1999--

William Haden, President and Chief Executive Officer of VRB Bancorp (Nasdaq:VRBA), announced second quarter earnings of $1,178,000 or $.14 per common share.

The results are down $70,000, or 6%, when compared to second quarter

Felice Belfiore, Chief Financial Officer, noted that the decline in earnings is directly linked to the Bank's mortgage lending activities. The Bank is near completion on the development of its new real estate loan department, thus expanding the Bank's mortgage products and improving its servicing abilities. The new department initially increased non-interest expenses, including higher personnel and occupancy costs. In addition, with internal resources focused on the department restructure, and the recent increase in long-term interest rates, total mortgage fees declined by 11% when comparing the two periods.

Haden also noted that "in addition to the steps we are now taking to increase the Bank's mortgage lending services, the Bank is currently promoting a variety of very competitive commercial and consumer loan products." Reflecting this effort, total loans increased by $6 million in the second quarter of 1999, resulting in net loan growth of $9 million, or 5%, for the year.

As a side note, Haden commented that despite the dip in earnings, he remained encouraged by growth in loans and key deposit areas such as non-interest bearing deposits and interest bearing demand deposits. "Much of the Bank's progress in deposit growth has been hidden by the calculated runoff of time certificates of deposits. As a result of the Bank's changing deposit mix, our average cost of funds remains at an all time low."

VRB Bancorp is the parent company of Valley of the Rogue Bank, the largest and oldest independently owned community bank in the Rogue Valley market. Valley of the Rogue Bank currently operates 13 full service offices located along the I-5 corridor in southern Oregon and employs over 190 employees. -0-

SELECTED FINANCIAL DATA
(unaudited, and in thousands except EPS)

FOR THE THREE MONTHS ENDED JUNE 30             1999           1998

 Interest income                              $5,597         $6,008
 Interest expense                              1,539          1,953
 Net interest income                           4,058          4,056
 Provision for loan losses                        --             --
 Net income                                   $1,178         $1,248

 Basic and fully diluted
  earnings per share                           $0.14          $0.14

 Weighted average shares outstanding       8,676,000      8,681,000


FOR THE SIX MONTHS ENDED JUNE 30               1999           1998

 Interest income                             $11,129        $12,153
 Interest expense                              3,143          3,996
 Net interest income                           7,987          8,157
 Provision for loan losses                        --             --
 Net income                                   $2,429         $2,490

 Basic earnings per share                      $0.28          $0.29
 Fully diluted earnings per share              $0.28          $0.28

 Weighted average shares outstanding       8,688,000      8,678,000

 FOR THE PERIOD ENDED               JUNE 30, 1999     DEC. 30, 1998

 Total assets                         $307,372           $311,217
 Loans, net                            184,398            175,188
 Total deposits                        271,439            274,122
 Shareholders' equity                  $35,189            $35,235

This press release includes forward looking statements, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including without limitation economic conditions and others set forth from time to time in the Company's filings with the SEC.