EXHIBIT 10(b)
                                                                   -------------

                               EXECUTIVE SUMMARY

         Columbia Bank ("Bank") recently experienced a downgrade of a large
credit relationship. In response, The Board of Directors and senior management
initiated a review of the current practices to manage credit risk. The Secura
Group ("Secura") was retained to assist the Board of Directors and senior
management with this task. Part of this effort included a diagnostic review of
current credit risk management practices, and comparisons of Columbia Bank's
practices to those of other larger community banks.

         Our Analysis included interviews with senior management of the Bank,
interviews with employees involved directly in the credit process and the review
of credit-related policies and procedures. Based on the results of the analysis
and on our experience in the banking industry, we have concluded that Columbia
Bank can improve its credit risk practices.

         The Credit Process and management of credit risk worked reasonably well
in the past. Management of the Bank has a depth of familiarity with the Tacoma
market that has facilitated rapid growth, profits and acceptable portfolio
performance. However, this strength presents issues for the Board of Directors
and senior management as the Bank implements its aggressive growth plans to
become a "regional" financial institution. Past practices for conducting the
credit business will not necessarily promote the same level of performance. As
the Bank expands into other markets, the recent loss is an example of what can
happen without well defined and institutionalized credit risk management
practices.

         We have discussed with senior management the results of our analysis
and provided suggestions for enhancement to the credit risk management process.
Our recommendations focus principally on the following three areas:

        o      The Bank should develop a formal distinction between loan
               production and credit administration. Currently both these
               functional areas report to the same individual, H.R. Russell. It
               is an established practice in well run super community banks to
               manage credit risk by separating the credit risk management
               process from "production". We recommend the Bank appoint a strong
               chief credit officer to manage the credit process. The Chief
               Credit Officer should have equal standing with the Bank's Senior
               Lending Officer.

        o      Reports to the Audit Committee should be re-formatted. Reports
               should include summary information that is prioritized by level
               of risk to the Bank. The reports should also include separate
               sections for responses to criticisms with a timeline for
               corrective action and accountability. We also suggest a summary
               document of any previous audit issues ( especially those with a
               high level of risk ) and current update from risk management.

                                       1




        o      Enhance the infrastructure in several departments of the Bank to
               support anticipated growth. This is particularly true for areas
               with reporting and monitoring responsibilities. For example, we
               recommend the Bank consider the establishment of a credit
               management information system ("MIS"). This area would be
               responsible for all reporting functions and would serve as the
               central area accountable for all current credit information. The
               Bank's Board of Directors as well as senior management would have
               access to a broad array of information to facilitate the risk
               management function. We also suggest that monitoring efforts be
               enhanced to keep credit administration and the loan officers
               informed about changes in the valuation of the loan portfolio.

         The unexpected downgrade to a major credit relationship occurred last
year because the credit process and systems were not designed to support the
expanding growth plans. Columbia Bank has been successful in the past managing
credit risk in its well known market. As the Bank grows, it is necessary to
establish a well-defined credit risk management process and system to support
this growth.


























                                       2