Centennial Bancorp reports 53% earnings gain.

EUGENE, Ore.--(BUSINESS WIRE)--July 10, 1996--Centennial Bancorp is pleased to report a 53% increase in consolidated earnings for the six months ended June 30, 1996, as compared to the same period in 1995.

Consolidated net income for the six month period was $3,018,810, as compared to $1,975,849 for the 1995 six month period. Primary earnings per share increased to $.61 from $.42 for the respective six month periods. Centennial Bancorp is the parent company of Centennial Bank and Centennial Mortgage Co., both based in Eugene.

During the quarter ended June 30, 1996, the company's consolidated net income was $1,565,892, or $.31 per share, which represented a 51% increase over the 1995 second quarter consolidated net income of $1,036,914, or $.22 per share.

Centennial Bancorp attributed the earnings improvement during the six months and the quarter ended June 30, 1996, to growth of earning assets, primarily loans and investment securities, and continuing efforts to control noninterest-related expenses.

At June 30, 1996, Centennial Bancorp's total assets increased 22% to $347,050,000 from total assets of $284,408,000 at June 30, 1995. More significantly, total earning assets increased to 90% of total assets at June 30, 1996. -0- Richard C. Williams President and Chief Executive Officer -0-

                           CENTENNIAL BANCORP

                                        1996          1995

At June 30, (unaudited):

Total assets                        $347,050,000  $284,408,000
Total loans                          230,979,000   180,272,000
Total deposits                       288,260,000   236,999,000
Total shareholders' equity            28,798,000    23,018,000
Tangible book value per share              $5.80         $4.78

Six months ended June 30, (unaudited):

Interest income                     $ 14,707,459  $ 11,845,571
Interest expense                       5,101,944     4,080,420
  Net interest income                  9,605,515     7,765,151
Provision for loan losses                285,000       150,000
Income before income taxes             4,472,210     2,912,349

Net income                             3,018,810     1,975,849

Net income per share:
  Primary                               61 cents      42 cents
  Fully diluted                         55 cents      39 cents

Quarter ended June 30, (unaudited):

Interest income                     $  7,627,803  $  6,224,796
Interest expense                       2,645,596     2,180,889
  Net interest income                  4,982,207     4,043,907
Provision for loan losses                135,000        75,000
Income before income taxes             2,319,692     1,531,614

Net income                             1,565,892     1,036,914

Net income per share:
  Primary                               31 cents      22 cents
  Fully diluted                         28 cents      20 cents

CONTACT: Centennial Bancorp, Eugene

Richard C. Williams or Michael J. Nysingh, 541/342-3970