Centennial First Financial Services Announces Record Earnings; www.redcent.com.

Business Editors

REDLANDS, Calif.--(BUSINESS WIRE)--Jan. 21, 2003

Centennial First Financial Services, (OTCBB:CFFX) the parent holding company of Redlands Centennial Bank in Redlands, (including Palomar Community Bank, a Division of Redlands Centennial Bank in Escondido, Calif.), announced fourth quarter operating results.

The company reported net income for the fourth quarter ending Dec. 31, 2002 of $495,000 up 35 percent from $365,000 earned in the fourth quarter of 2001. Basic earnings per share were $0.39 for the fourth quarter of 2002, compared with $0.35 for the same quarter of 2001.

For the 12 months ended Dec. 31, 2002, net income was $1,706,000, up 63 percent from $1,047,000 in 2001. Basic earnings per share for the year ended Dec. 31, 2002 were $1.42, compared with $1.19 for the year ended Dec. 31, 2001. Return on average assets and return on average equity for 2002 were 0.83% and 10.47%, respectively, compared with 0.77% and 10.20% for 2001, respectively.

Total net loans increased $15 million, or 12% to $141 million at year-end 2002, compared with $126 million at year-end 2001. Deposits increased $9 million, or 5% to $183 million from $174 million for the same period. Total assets increased $10 million, or 5 percent, from $198 million to $208 million from Dec. 31, 2001 to Dec. 31, 2002.

"We are delighted to report that 2002 earnings were the highest in the company's 12-year history. Our performance ratios were in line with projections, resulting from the successful acquisition of Palomar Community Bank in 2001, construction loan growth, and fee income generation. We are excited about our new branch in Palm Desert, slated for opening in March 2003.

"With the addition of Palm Desert, we now are strategically positioned to grow our company in another dynamic growth area in Southern California," according to President and CEO Timothy P. Walbridge. "Our focus will continue to be quality growth and increased earnings as we enhance our service and lending opportunities, leading to further increases in shareholder value."

Redlands Centennial Bank operates its main office and construction and real estate loan production office in downtown Redlands, a full-service branch in Brea, Calif., and its SBA/Commercial Lending production office in Brea. Palomar Community Bank, a Division of Redlands Centennial Bank, operates as a full-service commercial bank in downtown Escondido.

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 Beth Sanders, executive vice president and chief financial officer at [e-mail].