Centennial Bank to Open 7th Retirement Office and Relocate Lloyd District Office.

Business Editors, Banking Writers

PORTLAND, Ore.--(BUSINESS WIRE)--May 15, 2001

Centennial Bank announced that it has received FDIC approval for a new branch to be located in the new Cherry Wood Village retirement community near Portland Adventist Hospital in southeast Portland.

The Bank also unveiled plans to relocate its Lloyd District branch to Northeast Broadway and 19th Street. Both projects are planned to be completed by the end of the second quarter.

The Cherry Wood Village Office will be opened primarily to service the banking needs of community residents in the new retirement center. The branch address is 1417 SE 107th Avenue. This will be Centennial Bank's second new retirement center branch to open this year, and the seventh overall in the Portland metropolitan area.

"We continue to focus on providing service to retirement center customers," said Ted Winnowski, President and Chief Executive Officer of Centennial Bank. "Cherry Wood Village has been designed to be an exceptional retirement center, and Centennial Bank is proud to be the bank of choice for its residents."

"The new Cherry Wood Village branch continues the rapid expansion of our banking organization overall," continued Mr. Winnowski. "We are one of the largest providers of bank services to the retirement community in Portland. It's an area where we excel, and we plan to look for additional opportunities when they present themselves."

"The bank has a strong reputation for personal attention and local management," said Jim Norris, Director of Marketing for Cherry Wood Village. "Centennial developed the office in our other retirement center at Town Center Village in Clackamas. We are extremely pleased to be working again with Centennial as our banking services partner. They do a great job for us." Centennial Bank provides a full offering of personal services including Ultra Rate Fund accounts, Fifty Plus Accounts, debit and credit cards, and lending products.

Centennial Bank's other news is the relocation of the Lloyd District Office. The new site, scheduled to open Monday, June 25th, will offer additional benefit to customers and Lloyd District area residents. Besides more neighborhood visibility and accessibility, the office, to be located at 1911 Northeast Broadway, will now offer an ATM. "Having a branch ATM is a service convenience requested by our customers," said Suzan Miller, Branch Manager. "We're within easy reach of both the Lloyd Business District and the Hollywood Business District." Customers wanting more information about the move can contact Suzan at 503/287-7338.

With the opening of the Cherry Wood Village office, Centennial Bank will offer a total of 22 offices from Vancouver, Washington to Cottage Grove. Thirteen are in Portland, two in Vancouver, Washington, one in Salem and six in Lane County. Other Centennial Portland retirement center branches include Calaroga Terrace Office, Holladay Park Office, Terwilliger Plaza Office, Town Center Village Office, Willamette View Office and Mary's Woods Office.

Centennial Bancorp, Centennial Bank's parent company, recently reported a first quarter earnings increase of 12% over the prior year. At March 31, 2001, Centennial Bancorp's total assets were $857 million. Both Centennial Bank and Centennial Bancorp have their headquarters in Portland, Oregon.

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 plans and opportunities for expansion. 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, general business and economic conditions, as well as other factors listed from time to time in Centennial Bancorp's SEC reports.