8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 12, 2005

Cowlitz Bancorporation
(Exact Name of Registrant as specified in its charter)

Washington	0-23881	91 - 529841
(State or other jurisdiction of	(Commission File Number)	(IRS Employer Identification No.)
incorporation)

927 Commerce Ave.
Longview, Washington 98632
Address of Principal Executive Office and Zip Code

Registrant's telephone number including area code 360-423-9800

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
	240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
	240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition. 

        On October 18, 2005, Cowlitz Bancorporation issued a press release announcing the earnings for the third quarter ended September 30, 2005. A copy of the press release is attached as Exhibit 99.1.

Item 5.02(c)   Departure of Directors or Principal Officers;

Election of Directors; Appointment of Principal Officers. 

        On October 12, 2005, Cowlitz Bancorporation appointed Donna Gardner to act as Interim Chief Financial Officer. Ms. Gardner will assume the position upon the current Chief Financial Officer's departure on October 28, 2005 and will serve until the company finds a permanent replacement. Ms. Gardner has been with Cowlitz Bancorporation since 1981. She currently serves as Vice President of Cowlitz Bancorporation and Executive Vice President/Operations of Cowlitz Bank. Ms. Gardner previously served as the company's Chief Financial Officer from May 2003 until June 2005.

        Ms. Gardner has an Executive Severance Agreement with Cowlitz Bank, the wholly-owned subsidiary of Cowlitz Bancorporation, dated October 20, 1994. Pursuant to that agreement, in the event of her involuntary termination within three years after a change in control of the company or within twelve months of the announcement of a change in control which is later consummated, Ms. Gardner will receive twelve times her last full month's salary. The agreement also provides that Ms. Gardner's salary will not be reduced for twelve months following a change in control.

Item 9.01   Financial Statements and Exhibits.

(a)	Not applicable.
(b)	Not applicable.
(c)	Exhibits.
	99.1 Press Release

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			COWLITZ BANCORPORATION (Registrant)
Date:	October 18, 2005	By:	/s/ Randy V. Blake
			Randy V. Blake, Chief Financial Officer

EX-99.1

Exhibit 99.1

October 18, 2005 11:30 a.m. Pacific Time Company Press Release

SOURCE:	Cowlitz Bancorporation
CONTACTS:	Richard J. Fitzpatrick, Chief Executive Officer
	Donna P. Gardner, Interim Chief Financial Officer
	(360) 423-9800

Cowlitz Bancorporation Announces a 46% Increase in Earnings

LONGVIEW, Wash, October 18, 2005 /PRNewswire/ --

FlashResults
Cowlitz Bancorporation (NASDAQ: CWLZ)
(Numbers in Thousands, Except Per Share Data)

	Three Months	Three Months	Nine Months	Nine Months
	Ended 9/30/05	Ended 9/30/04	Ended 9/30/05	Ended 9/30/04
Net Interest Income	$3,758	$3,096	$10,310	$8,910
Net Income	$756	$517	$2,085	$1,353
Average Diluted Shares	4,383	4,097	4,340	4,038
Diluted EPS	$0.17	$0.13	$0.48	$0.34

Cowlitz Bancorporation (NASDAQ: CWLZ - news) today reported a 46% increase in net income to $756,000 or $0.17 per diluted share for the third quarter of 2005, compared to net income of $517,000 or $0.13 per diluted share during the third quarter of 2004. Net income for the nine months ended September 30, 2005 increased 54% to $2,085,000 or $0.48 per diluted share compared to $1,353,000 or $0.34 per diluted share for the same period of 2004. Richard J. Fitzpatrick, President and CEO of Cowlitz Bancorporation and its wholly owned subsidiary Cowlitz Bank, stated, "The Bank's robust earnings growth continues to be driven by expansion in the commercial banking line of business." Cowlitz experienced loan growth of 9.2% during the third quarter of 2005 and 20.6% for the nine months ended September 30, 2005.

Total assets at September 30, 2005 were $311.6 million compared to $273.3 million at December 31, 2004, and $268.4 million at September 30, 2004.

The ratio of non-performing assets to total assets was 0.32% at September 30, 2005 compared to 0.30% at December 31, 2004 and 0.51% at September 30, 2004. Total non-performing assets were $1.0 million at September 30, 2005 compared to $818,000 at December 31, 2004 and $1.4 million at September 30, 2004.

Cowlitz' provision for loan losses was $310,000 and $73,000 for the three months ended September 30, 2005 and 2004, respectively. The provision for loan losses increased during 2005 to support the growth in the loan portfolio. During the nine months ended September 30, 2005, Cowlitz Bank charged $243,000 to its allowance for loan losses, which was partially offset by $131,000 in recoveries. At September 30, 2005, the loan loss reserve was $4.05 million, or 1.78% of total loans, compared to $3.94 million or 2.11% of total loans on September 30, 2004.

Cowlitz also announced today that Randy Blake, Senior Vice President & Chief Financial Officer of the bank and holding company since June 13, 2005, resigned effective October 28, 2005. Mr. Blake stated that the decision is based on his desire to pursue another opportunity for personal reasons, not related to the management or direction of Cowlitz.

"We are disappointed that this relationship was not longer lasting, but wish Randy the best as he pursues other opportunities, closer to his home," said Richard Fitzpatrick, President and CEO. Mr. Fitzpatrick said that Donna P. Gardner, former CFO of Cowlitz Bancorporation, has accepted a temporary appointment to serve as Chief Financial Officer, both for the bank and the holding company. "Ms. Gardner has the capability to see us through until we can locate a permanent replacement for Mr. Blake," stated Mr. Fitzpatrick. "We are fortunate to be able to rely on Donna's experience for this time, as we conduct an executive search for a Chief Financial Officer."

Cowlitz Bancorporation is the holding company of Cowlitz Bank, which was established in 1977. In addition to its four branches in Cowlitz County Washington, Cowlitz Bank's divisions include Bay Bank located in Bellevue and Vancouver, Washington and Portland and Wilsonville, Oregon; and Bay Mortgage, with residential lenders in three of the Bank's Cowlitz County branches, as well as the Vancouver office. Cowlitz specializes in commercial banking services for Northwest businesses, professionals, and retail customers, and offers trust services out of Longview and Vancouver, Washington, and in its Bay Bank branch in Portland, Oregon. Cowlitz recently announced its intent to purchase AEA Bancshares, Inc. with one bank branch in Seattle, Washington. The acquisition is scheduled to close on November 1, 2005.

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those discussed in this press release as a result of risk factors identified in the Company's Form 10-K for the year ended December 31, 2004, filed with the SEC. Specific risks in this release relate to the closing of the merger with AEA Bancshares, Inc.

FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except per share data)
INCOME STATEMENT	Three Months Ended September 30,			Nine Months Ended September 30,
	2005		2004		2005	2004
Interest income	$                    5,108		$                  3,823	$                     13,721		$           11,127
Interest expense	1,350		727		3,411	2,217
Net interest income	3,758		3,096	10,310		8,910
Provision (benefit) for loan losses		310	73		370	160
Net interest income after loan loss provision	3,448		3,023		9,940	8,750
Non-interest income		642	635		1,822	2,165
Non-interest expense	3,056		2,970		8,930	9,160
Income before provision for income taxes	1,034		688		2,832	1,755
Provision for income taxes		278	171		747	402
Net income	$	756	$                     517	$	2,085	$             1,353
Basic earnings per weighted average share of common stock	$	0.18	$                    0.13	$	0.50	$               0.34
Diluted earnings per weighted average share of common stock	$	0.17	$                    0.13	$	0.48	$               0.34
Weighted average shares outstanding
Basic		4,186,783	4,004,149		4,179,239	3,941,902
Diluted		4,383,381	4,097,244		4,339,751	4,037,722
Actual shares outstanding		4,189,146	4,165,975		4,189,146	4,165,975
Efficiency Ratio		69.45%	79.60%		73.61%	82.71%
Number of full-time equivalent employees					107	105
	Three Months Ended September 30,			Nine Months Ended September 30,
SELECTED AVERAGES	2005		2004		2005	2004
Average interest-earning assets	$ 296,673		$ 243,739	$ 280,608		$ 239,432
Total average assets	$ 312,311		$ 265,768	$ 295,454		$ 262,829
Average interest-bearing liabilities	$ 209,540		$ 174,425	$ 197,967		$ 172,653
Average equity	$   37,696		$   33,392	$   36,688		$   32,782

BALANCE SHEET	Sept 30, 2005					Dec 31, 2004			Sept 30, 2004
Total assets	$        311,616					$	273,286	$	268,439
Securities available for sale	$          52,480					$	60,005	$		58,817
Securities held to maturity	$	-				$	-	$		385
Loans, net of allowance for loan losses	$        223,712					$	185,550	$	182,750
Loans held for sale	$	-				$	-	$		-
Bank Owned Life Insurance	$          11,364					$	8,585	$		8,502
Goodwill	$	852				$	852	$		852
Other intangible assets	$	-				$	-	$		37
Deposits	$        255,888					$	234,610	$	221,216
Borrowings	$	2,926				$	986	$		557
Equity	$          37,534					$	35,698	$		35,108
Book value per share	$	8.96				$	8.55	$		8.43
Tangible book value per share	$	8.76				$	8.35	$		8.21
Tier 1 leverage capital ratio		11.77%					12.60%			10.47%
	Three Months Ended September 30,						Nine Months Ended September 30,
RATIOS ANNUALIZED		2005			2004			2005		2004
Return on average assets		0.97%			0.78%			0.94%		0.69%
Return on average equity		8.02%			6.19%			7.58%		5.50%
Average equity/average assets		12.07%			12.56%			12.42%		12.47%
Interest rate yield on interest-earning assets		6.89%			6.27%			6.52%		6.20%
Interest rate expense on interest-bearing liabilities		2.58%			1.67%			2.30%		1.71%
Interest spread		4.31%			4.60%			4.22%		4.49%
Net interest margin		5.07%			5.08%			4.90%		4.96%
	Nine Months Ended September 30,
ALLOWANCE FOR LOAN LOSSES		2005			2004
Balance at beginning of period	$	3,796		$	3,968
Provision for loan losses		370			160
Recoveries		131			238
Charge Offs		(243)			(424)
Balance at end of period	$	4,054		$	3,942
Loan loss allowance/gross loans		1.78%			2.11%
Loan loss allowance/non-performing loans		406.62%			689.16%
NON-PERFORMING ASSETS	Sept 30, 2005					Dec 31, 2004			Sept 30, 2004
Accruing loans - over 90 days past due	$		-			$	1		$	-
Nonaccrual loans			997				84			572
Total non-performing loans			997				85			572
Other real estate owned			11				733			805
Other assets			-				-			2
Total non-performing assets	$		1,008			$	818		$	1,379
Total non-performing assets/total assets		0.32%					0.30%			0.51%