UPDATE 1-Regulators imposes restrictions on Columbia River bank

Feb 12 (Reuters) - Columbia River Bank, a subsidiary of Columbia Bancorp (CBBO.O), said its regulators imposed certain restrictions on the company, including payment of dividends and extending additional credit to certain types of borrowers without consent.

The Federal Deposit Insurance Corporation and the Oregon Division of Finance and Corporate Securities, the company's regulators, also require the bank to eliminate certain classified assets and develop a plan to reduce delinquent loans.

The regulatory move is in addition to the series of steps taken by the company, following a surge in problem loans and increased provisions, as it strives to cut costs amid a difficult mortgage market.

Apart from suspending board compensation and its dividend, the company has substantially reduced aggregate executive compensation costs, and eliminated or significantly restructured certain types of executive compensation plans.

Columbia River Bank, which has reduced staffing by 14.3 percent since September, said following the regulatory order, it must retain qualified management and must notify the FDIC in writing when it proposes to add any individual to its board or to employ any new senior executive officer.

Shares of Dalles, Oregon-based Columbia Bancorp closed at $1.48 Thursday on Nasdaq. (Reporting by Anurag Kotoky in Bangalore; Editing by Amitha Rajan)