Centennial Bancorp Announces 2002 Third Quarter Dividend; Schedules Investors Presentation.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 1, 2002

Centennial Bancorp (Nasdaq: CEBC), the parent of Centennial Bank, today announced that its Board of Directors declared a $0.04 per share quarterly cash dividend to be paid November 1, 2002 to shareholders of record on October 15, 2002.

"This is Centennial's sixth consecutive cash dividend since we initiated our program last year," said Ted R. Winnowski, President and CEO of Centennial Bancorp and Centennial Bank. "Issuing cash dividends continues to be a significant way to consistently reward the support of our shareholders."

Centennial Bancorp announced in July that it will merge with Umpqua Holdings Corporation (Nasdaq: UMPQ), and Centennial Bank will operate under the Umpqua Bank name. This merger will provide a broader range of services to customers, and expand the combined bank's network to more than 60 offices throughout Oregon and southwest Washington. The Company's shareholders will be offered the opportunity to elect to receive 0.5343 of a share of Umpqua Holdings Corporation common stock for each Centennial Bancorp share, or $9.35 cash per Centennial Bancorp share, or a combination of stock and cash for their Centennial shares, subject to adjustment under certain circumstances. The merger is currently going through the normal review process, and is subject to the customary approvals from regulators and shareholders of both companies. The merger is expected to close later this year.

President's Message Scheduled Thursday, October 17, 2002

Centennial plans to report third quarter results on Thursday, October 17, 2002. Following the announcement the same day at 11:00 AM Pacific Daylight Time (PDT) will be a prepared presentation of the Company's performance by Mr. Winnowski and management. The presentation will include remarks about progress to date, credit quality and an update on events related to the merger. Shareholders and other interested individuals can call toll-free 800/642-1687 to listen. You will be asked to provide the presentation access number: 5916031, followed by the pound sign (#). The presentation will be available until October 24, 2002. A transcript also will be available on the Centennial Bank website -- www.centennialbank.com.

About Centennial Bancorp

Centennial Bancorp is a bank holding company organized in 1981, whose subsidiary is Centennial Bank, both headquartered in Portland, Oregon. Centennial Bank is a full-service business bank and currently operates twenty-three banking offices. Fourteen are in the Portland metropolitan area; two in Vancouver, Washington; one in Salem; and six in Lane County. The Bank also operates four mortgage lending offices, and six commercial banking centers directed to the needs of middle market commercial customers.

Centennial Bancorp's common stock is traded on the NASDAQ National Market and is included in the Russell 2000(R) Index under the symbol "CEBC." For more information, please contact Centennial Bancorp, One SW Columbia Street, Suite 900, Portland, Oregon 97258. Telephone: [phone]; FAX: [phone]. Web address: www.centennialbank.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995, including statements concerning the continued financial performance of the company and its planned merger with Umpqua Holdings Corporation. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially than those expected. Specific risks include, but are not limited to, the possibility that the planned merger will not receive the necessary approvals or that it may not occur for other reasons, general business and economic conditions, and other factors listed from time to time in Centennial Bancorp's SEC reports.