Centennial First Financial Services Announces Stock Dividend; www.redcent.com.

Business Editors

REDLANDS, Calif.--(BUSINESS WIRE)--Jan. 27, 2003

Centennial First Financial Services, (OTC BB:CFFX) parent holding company of Redlands Centennial Bank in Redlands, (including Palomar Community Bank, a Division of Redlands Centennial Bank, in Escondido), today announced a 5% stock dividend to shareholders of record Feb. 7, 2003, and payable March 7, 2003.

Patrick J. Meyer, chairman of the board stated, "The dividend reflects the on-going success of the bank and rewards shareholders for their continued support." This represents the 11th dividend paid by the company in its 12-year history.

Last week, the company announced earnings 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 $1.12 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 .77% and 10.20% for 2001, respectively. Total assets were $208 million at year-end.

The company is currently in the process of seeking shareholder approval to change the name of the Holding company from "Centennial First Financial Services" to "1st Centennial Bancorp." Assuming approval, the name change will be effective on, or about Feb. 18, 2003. In addition, the company is in the process of completing the final steps necessary to effect the name change of the bank from "Redlands Centennial Bank" to "1st Centennial Bank."

According to Tim Walbridge, President & CEO, "We believe that maximizing our name recognition in all of our locations with one, strong, unified name, will give strength to the franchise and eliminate confusion, as we expand beyond city and county lines."

Redlands Centennial Bank operates its main office and construction and real estate loan production office in downtown Redlands, Calif., 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 a full-service branch in downtown Escondido, Calif. The bank will open a full service branch in Palm Desert, Calif., near the end of March 2003.

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].