Centennial Bank Announces Agreement to Purchase Northwest National Bank Vancouver Hazel Dell Branch.

EUGENE, Ore.--(BUSINESS WIRE)--Dec. 21, 1998--Centennial Bank (Nasdaq/NMS:CEBC) is pleased to announce that it has entered into an agreement to purchase Northwest National Bank's Hazel Dell Branch located at 600 N.E. 99th Street in Vancouver, Washington.

The transaction is subject to regulatory approval and is expected to be completed in the Spring of 1999.

The Hazel Dell Branch was offered for sale in connection with the previously announced merger between U.S. Bancorp and Northwest Bancshares, Inc. At Oct. 31, 1998 the Hazel Dell Branch reported deposits of $37,452,006 and loans of $23,520,645.

Centennial Bank is the wholly owned subsidiary of Eugene based Centennial Bancorp. Centennial is a full-service commercial bank specializing in commercial lending to small and medium sized businesses. As of Sept. 30, 1998 Centennial Bancorp's total assets were $562,530,785, deposits were $482,111,659 and loans were $406,943,561. Centennial Bancorp has two subsidiaries -- Centennial Bank and Centennial Mortgage Co. -- both of which have experienced rapid business and geographic growth in the Portland metropolitan area.

"This purchase represents a significant development for our banking organization," said Dick Williams, President & Chief Executive Officer of Centennial Bancorp. "The new branch office allows us a natural expansion into the rapidly growing Clark County area of Washington. Also, it will allow Centennial future strategic expansion into other areas of Clark County and the state of Washington. We are excited about the opportunities resulting from this acquisition for both the bank and the mortgage company."

Currently, Centennial Bank operates 14 branches in Oregon. Nine are full-service branches -- four in Portland, three in Eugene, one in Cottage Grove and one in Springfield. In addition, the bank operates five limited service offices in large retirement centers in the Portland area. Centennial Mortgage Co. operates four offices, three of which are located in Portland and one in Eugene.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements concerning the anticipated timing and benefits of the proposed acquisition. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expected. Specific risks and uncertainties include, but are not limited to, those related to regulatory approvals and to general business and economic conditions, as well as other factors listed from time to time in Centennial Bancorp's SEC reports, including, but not limited to, Exhibit 99.1 to its Form 10-K for the year ended Dec. 31, 1997.