Centennial First Financial Services Announces Quarterly Earnings.

Business Editors

REDLANDS, Calif.--(BUSINESS WIRE)--April 5, 2001

Centennial First Financial Services (OTCBB:CFFX), parent company of Redlands Centennial Bank, today announced operating results for the first quarter of 2001.

Earnings for the quarter ending March 31, 2001 were $182,000, compared with earnings of $174,000 for the first quarter 2000, representing a 5% increase. Basic earnings per share were 25 cents for the current quarter compared with 24 cents for the same period last year. Total assets reached a record high of $104 million as of March 31, 2001.

Total loans increased $5.9 million, or 10%, to $61.7 million from March 2000 to March 2001. Deposits, at $95.7 million, represent an increase of $25.6 million, or 36% for the same period.

Douglas C. Spencer, president and chief executive officer, stated, "We are proud to report the highest earnings during this period since the inception of the bank. The increased income is a direct result of management's financial strategy of quality loan and deposit growth."

In a signed definitive agreement, the company announced in December, its planned acquisition of Palomar Community Bank in Escondido, Calif. The $10.5 million cash transaction is expected to be completed in 2001. In addition, Redlands Centennial Bank opened a full-service branch in Brea, Calif., in January 2001.

In February, the company announced a 5 cent per share cash dividend to shareholders of record on March 2, 2001 and paid on April 2, 2001.

Spencer stated: "We are fortunate to have a strong shareholder and customer base that continues to show their confidence and support. We look forward to the opportunities of our expanded market area in Orange County, and soon in Northern San Diego County with the addition of Palomar Community Bank."

Currently a one-bank holding company, Centennial First Financial Services was formed in December 1999 as the parent company of Redlands Centennial Bank, which has provided banking services since August 1990. In addition to the Brea branch, the company operates its main office and construction division in downtown Redlands, and an SBA loan production office in Santa Ana, Calif.

This release contains forward-looking statements that reflect management's current views of future events and operations. These forward-looking statements are based on information currently available to the company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties including, but not limited to, the ability of the company to implement its strategy and expand its lending operations.

Additional information is available on the Internet at www.redcent.com or by contacting Spencer directly at [e-mail].