Centennial Bancorp reports 55% earnings increase.

EUGENE, Ore--(BUSINESS WIRE)--April 8, 1996--Centennial Bancorp is pleased to report increased earnings for the quarter ended March 31, 1996.

Consolidated net income for the quarter was $1,452,918, or $.30 per share, which represents a 55% increase over 1995 first-quarter earnings of $938,935, or $.20 per share. Centennial Bancorp is the parent company of Centennial Bank and Centennial Mortgage Co., both based in Eugene.

Centennial Bancorp attributed the strong first quarter earnings to further expansion of earning assets, primarily loans and investment securities, and efforts to control non-interest-related expenses.

At March 31, 1996, Centennial Bancorp's total assets increased 31% to $345,280,000 from total assets of $263,446,000 at March 31, 1995, and increased 9% from total assets of $317,464,000 at Dec. 31, 1995. Net loans and loans held for sale increased 23% at March 31, 1996, as compared to net loans and loans held for sale at March 31, 1995, and increased 7% from net loans and loans held for sale at Dec. 31, 1995. Total earnings assets represented 89% of total assets at March 31, 1996. -0-

                             CENTENNIAL BANCORP
                               (in thousands)

                                              March 31,
                                          1996          1995

Loans and loans held for sale, net      $201,851      $163,885
Total assets                             345,280       263,446
Total deposits                           286,570       218,785
Total shareholders' equity                26,919        21,131

                 (In thousands, except per share amounts)

                                         The Quarter Ended
                                             March 31,
                                         1996         1995

Interest income                        $ 7,079      $ 5,621
Interest expense                         2,456        1,900
  Net interest income                    4,623        3,721

Provision for loan losses                  150           75
Net interest income after
 provision for loan losses               4,473        3,646

Non-interest income                        498          533
Non-interest expense                     2,818        2,798

Income before income taxes               2,153        1,381

Provision for income taxes                 700          442

Net income                             $ 1,453      $   939

Net income per share:
  Primary                             30 cents     20 cents
  Fully diluted                       27 cents     19 cents

CONTACT: Centennial Bancorp, Eugene

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