<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
/X/ Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1995
-------------
OR
/ / Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
---------- ----------
Commission File Number 0-10489
-----------
CENTENNIAL BANCORP
(Exact name of registrant as specified in its charter)
OREGON 93-0792841
(State of Incorporation) (I.R.S. Employer
Identification Number)
675 Oak Street
Eugene, Oregon 97401
(Address of principal executive offices)
(Zip Code)
(503) 342-3970
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes /X/ No / /
<PAGE>
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of latest practicable date.
4,224,298 shares as of July 28, 1995.
-2-
<PAGE>
CENTENNIAL BANCORP
FORM 10-Q
JUNE 30, 1995
INDEX
-----
Page
PART I - FINANCIAL INFORMATION Reference
------------------------------ ---------
Condensed Consolidated Balance Sheets as of 4
June 30, 1995 and December 31, 1994.
Condensed Consolidated Statements of Income for 5
the six months and the quarter ended
June 30, 1995 and 1994.
Condensed Consolidated Statements of Cash Flows 6
for the six months ended June 30, 1995
and 1994.
Notes to Condensed Consolidated Financial Statements 7 - 10
Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Overview 11
Material Changes in Financial Condition 11 - 12
Material Changes in Results of Operations 13 - 14
Loan Loss Provision 14 - 15
Liquidity and Capital Resources 15
PART II - OTHER INFORMATION
---------------------------
Item 4 - Submission of Matters to a Vote 16
of Security Holders.
Item 6 - Exhibits and Reports on Form 8-K. 16
Signatures 17
-3-
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
------------- -------------
<S> <C> <C>
ASSETS
------
Cash and cash equivalents:
Cash and due from banks $ 20,278,076 $ 19,783,038
Interest-bearing balances due from banks 6,000,000 5,575,000
Federal funds sold 8,950,000 --
------------ ------------
Total cash and cash equivalents 35,228,076 25,358,038
Available-for-sale securities 56,835,661 58,794,836
Loans 177,192,966 160,136,068
Reserve for loan losses (1,844,716) (1,700,130)
------------ ------------
Loans, net 175,348,250 158,435,938
Loans held for sale 3,078,902 1,874,728
Accrued interest receivable 1,931,772 1,827,406
Premises and equipment, net 8,836,696 6,763,983
Intangible assets 805,578 876,655
Other assets 1,715,160 1,984,048
Deferred tax asset 628,365 1,721,129
------------ ------------
$284,408,460 $257,636,761
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities:
Deposits:
Demand $ 57,123,046 $ 63,699,442
Interest-bearing demand 94,437,754 79,942,836
Savings 15,070,913 15,888,076
Time 70,367,024 56,789,446
------------ ------------
Total deposits 236,998,737 216,319,800
Short-term borrowings 13,354,340 11,839,608
Accrued interest and other liabilities 1,837,173 1,072,022
Long-term debt 9,200,000 9,200,000
------------ ------------
Total liabilities 261,390,250 238,431,430
Shareholders' equity:
Preferred stock, $5.00 par value; none issued
Non-voting, 5,000,000 shares authorized -- --
Voting, 5,000,000 shares authorized -- --
Common stock, $2.00 par value; 10,000,000 shares
authorized, 4,224,298 issued and outstanding
(3,974,225 at December 31, 1994) 8,448,596 7,948,450
Surplus 6,621,962 7,067,963
Retained earnings 8,082,227 6,106,378
Net unrealized loss on securities available-
for-sale, net of deferred income taxes (134,575) (1,917,460)
------------ ------------
Total shareholders' equity 23,018,210 19,205,331
------------ ------------
$284,408,460 $257,636,761
============ ============
</TABLE>
See accompanying notes.
-4-
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
The Quarter Ended The Six Months Ended
June 30, June 30,
--------------------------- --------------------------
1995 1994 1995 1994
---------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $5,268,754 $3,922,965 $10,014,919 $7,079,261
Interest on investment securities 843,788 836,505 1,692,294 1,610,538
Other interest income 112,254 41,551 138,358 78,098
---------- ---------- ----------- ----------
Total interest income 6,224,796 4,801,021 11,845,571 8,767,897
INTEREST EXPENSE
Interest on deposits 1,819,957 1,031,622 3,347,606 2,012,213
Interest on short-term borrowings 206,241 41,947 416,398 52,565
Interest on long-term debt 154,691 143,894 316,416 194,493
---------- ---------- ----------- ----------
Total interest expense 2,180,889 1,217,463 4,080,420 2,259,271
---------- ---------- ----------- ----------
NET INTEREST INCOME 4,043,907 3,583,558 7,765,151 6,508,626
Loan loss provision 75,000 87,000 150,000 169,500
---------- ---------- ----------- ----------
Net interest income after
loan loss provision 3,968,907 3,496,558 7,615,151 6,339,126
NONINTEREST INCOME
Service charges on deposit accounts 234,710 213,769 461,344 417,110
Other 58,098 213,659 211,620 426,986
Loan servicing fees 112,922 116,947 226,414 248,092
Gains on sales of loans 71,658 108,209 111,156 346,236
Gains on sales of investment securities 20,363 -- 20,363 14,659
--------- ---------- ----------- ---------
Total noninterest income 497,751 652,584 1,030,897 1,453,083
NONINTEREST EXPENSE
Salaries and employee benefits 1,611,539 1,531,837 3,226,622 2,974,594
Premises and equipment 421,061 316,291 805,329 631,754
Legal and professional 142,899 254,589 253,328 424,825
Insurance 126,092 126,684 271,152 255,793
Advertising 70,490 94,928 158,788 178,439
Printing and stationery 68,557 77,625 134,853 137,210
Communications 80,524 79,573 157,532 157,451
Other 413,882 472,636 726,095 798,590
---------- ---------- ----------- ----------
Total noninterest expense 2,935,044 2,954,163 5,733,699 5,558,656
---------- ---------- ----------- ----------
Income before income taxes 1,531,614 1,194,979 2,912,349 2,233,553
Provision for income taxes 494,700 382,984 936,500 713,596
---------- ---------- ----------- ----------
NET INCOME $1,036,914 $ 811,995 $ 1,975,849 $1,519,957
========== ========== =========== ==========
Earnings per common share:
Primary $ .24 $ .19 $ .46 $ .39
Fully diluted $ .22 $ .18 $ .43 $ .38
Weighted average shares outstanding:
Primary 4,337,742 4,216,168 4,334,972 3,945,102
Fully diluted 5,149,172 4,786,844 5,146,402 4,232,016
</TABLE>
See accompanying notes.
-5-
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
The Six Months Ended
June 30,
--------------------------
1995 1994
------------ ------------
<S> <C> <C>
Net cash provided by operating activities $ 5,044,449 $ 2,180,146
Cash flows from investing activities:
Net increase in loans (17,062,312) (9,164,037)
Investment security purchases (3,014,669) (10,172,764)
Proceeds from investment securities:
Maturities 1,965,826 6,947,396
Sales 3,008,018 1,516,748
Purchases of premises and equipment (2,319,088) (274,161)
----------- -----------
Net cash used by investing activities (17,422,225) (11,146,818)
Cash flows from financing activities:
Net increase (decrease) in deposits 20,678,937 (1,418,968)
Net increase in short-term borrowings 1,514,732 62,779
Proceeds from long-term debt -- 9,200,000
Principal payments on long-term debt -- (6,989,261)
Proceeds from issuance of common stock 54,145 --
----------- -----------
Net cash provided by financing activities 22,247,814 854,550
----------- -----------
Net increase in cash and cash equivalents 9,870,038 (8,112,122)
Cash and cash equivalents at beginning of period 25,358,038 24,820,005
----------- -----------
Cash and cash equivalents at end of period $35,228,076 $16,707,883
=========== ===========
</TABLE>
See accompanying notes.
-6-
<PAGE>
CENTENNIAL BANCORP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The interim condensed consolidated financial statements
include the accounts of Centennial Bancorp, a bank
holding company ("Bancorp"), and its wholly owned
subsidiaries, Centennial Bank ("Bank"), Centennial Mortgage
Co. ("Mortgage Co.") and Harding Fletcher Co. ("Harding
Fletcher"). The Bank is an Oregon state-chartered bank
which provides commercial banking services. Mortgage Co.
originates residential mortgage loans for resale in the
secondary market. Harding Fletcher originates and services
for institutional investors loans secured by mortgages on
commercial real properties.
The interim condensed consolidated financial statements are
unaudited, but include all adjustments, consisting only of
normal accruals, which Bancorp considers necessary for a
fair presentation of the results of operations for such
interim periods.
All significant intercompany balances and transactions have
been eliminated in consolidation.
The interim condensed consolidated financial statements
should be read in conjunction with the consolidated
financial statements, including the notes thereto, included
in Bancorp's 1994 Annual Report to Shareholders.
Certain amounts for 1994 have been reclassified to conform
with the 1995 presentation.
2. Business Combination
--------------------
On November 15, 1994, the shareholders of CG Bancorp
approved the merger of CG Bancorp with and into Bancorp.
The merger occurred December 2, 1994. Under the terms of
the agreement, CG Bancorp shareholders received 1.2694
shares of Bancorp common stock for each CG Bancorp share.
Accordingly, Bancorp issued 253,223 shares of its common
stock (265,884 shares, as adjusted for a stock split
declared July 14, 1995) for all of the outstanding shares of
CG Bancorp common stock.
The merger has been accounted for as a pooling of interests.
-7-
<PAGE>
Accordingly, Bancorp's financial statements have been
restated to include the financial position, results of
operations and cash flows of CG Bancorp for all periods
presented.
Interest income and net income (in thousands) of the
separate companies for the periods preceding the acquisition
were:
Centennial CG
Bancorp Bancorp Combined
---------- ------- --------
The quarter ended
June 30, 1994
(unaudited):
Interest income $ 4,332 $ 469 $ 4,801
Net income 734 78 812
Six months ended
June 30, 1994
(unaudited):
Interest income 7,844 924 8,768
Net income 1,381 139 1,520
Year ended
December 31, 1993:
Interest income 13,083 1,766 14,849
Net income 2,506 257 2,763
Year ended
December 31, 1992:
Interest income 11,562 1,757 13,319
Net income 1,802 203 2,005
3. Loans and Reserve for Loan Losses
---------------------------------
The composition of the loan portfolio was as follows:
-8-
<PAGE>
June 30, December 31,
1995 1994
------------ ------------
Real estate-mortgage $ 53,170,012 $ 54,916,880
Real estate-construction 37,435,140 29,337,387
Commercial 76,616,681 66,514,955
Installment 6,667,062 6,950,813
Lease financing 3,644,684 2,686,227
Other 277,928 329,899
------------ ------------
177,811,507 160,736,161
Less deferred loan fees (618,541) (600,093)
------------ ------------
$177,192,966 $160,136,068
============ ============
Loans held for sale of $3,078,902 and $1,874,728 at June 30,
1995 and December 31, 1994, respectively, represent real
estate mortgage loans. These loans are recorded at cost
which approximates market.
Transactions in the reserve for loan losses were as follows
for the six months ended June 30:
1995 1994
----------- -----------
Balance at beginning of period $1,700,130 $1,514,314
Provision charged to operations 150,000 169,500
Recoveries 17,800 5,963
Loans charged off (23,214) (26,847)
---------- ----------
Balance at end of period $1,844,716 $1,662,930
========== ==========
It is Bancorp's policy to place loans on nonaccrual status
whenever the collection of all or a part of the principal
balance is in doubt. Loans placed on nonaccrual status may
or may not be contractually past due at the time of such
determination, and may or may not be secured by collateral.
Loans on nonaccrual status at June 30, 1995 and December 31,
1994 were approximately $726,000 and $693,000, respectively.
-9-
<PAGE>
Loans past due 90 days or more on which Bancorp continued to
accrue interest were approximately $179,000 at June 30,
1995, and approximately $190,000 at December 31, 1994.
There were no loans on which the interest rate or payment
schedule were modified from their original terms to
accommodate a borrower's weakened financial position at
June 30, 1995 or December 31, 1994.
4. Earnings Per Common Share
-------------------------
Primary earnings per common share is calculated by dividing
net income by the weighted average shares outstanding.
Weighted average shares outstanding consist of common shares
outstanding and common stock equivalents attributable to
outstanding stock options.
Fully diluted earnings per share is calculated by dividing
net income plus after-tax interest incurred on the 7%
Convertible Debentures ($9,200,000 issued in April 1994), by
common shares outstanding, common stock equivalents
attributable to outstanding stock options, and shares
assumed to be issued on conversion of the Convertible
Debentures.
The weighted average number of shares and common share
equivalents have been adjusted to give retroactive effect to
a 21-for-20 stock split declared July 14, 1995, the 1994
acquisition of CG Bancorp and stock splits and stock
dividends declared prior to June 30, 1995.
5. Sale of Subsidiary
------------------
On August 8, 1995, Bancorp entered into an Asset Purchase
Agreement pursuant to which it has agreed to sell
substantially all the assets of Harding Fletcher, its wholly
owned subsidiary, to an unaffiliated purchaser. The
transaction is expected to close during the fiscal quarter
ending September 30, 1995. Pursuant to the Agreement, the
purchase price is estimated to be approximately $740,000,
payable without interest in installments over a four-year
period following the closing. Bancorp expects to retain for
a two-year period following the closing servicing
relationships with investors holding a portion of the loans
serviced by Harding Fletcher. Management does not
anticipate that the transaction will have a material impact
on Bancorp's financial statements or results of operations.
-10-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
--------
Centennial Bancorp reported net income of $1,975,849, or
$.46 per share (primary), for the six months ended June 30, 1995.
This represented a 30% increase in net income, as compared to
$1,519,957, or $.39 per share, for the six months ended June 30,
1994. Net income of $1,036,914, or $.24 per share, for the
quarter ended June 30, 1995 similarly represented a 28% increase
in net income as compared to $881,995, or $.19 per share for the
quarter ended June 30, 1994. The increased earnings during the
six months and the quarter ended June 30, 1995 reflected
primarily the expansion of Bancorp's interest-earning assets and
increased net interest income.
The net income added to shareholders' equity during the six
months and the second quarter of 1995 was augmented by an
increase in the valuation of Bancorp's investment portfolio of
available-for-sale securities. This increase in the value of the
available-for-sale securities resulted from a slight decrease in
interest rates which caused bond prices to increase. Management
believes that the net unrealized loss on available-for-sale
securities, net of deferred income taxes, will be reduced during
the remainder of 1995 as interest rates and the bond market
stabilize.
MATERIAL CHANGES IN FINANCIAL CONDITION
---------------------------------------
Material changes in financial condition for the six months
ended June 30, 1995 include an increase in total assets,
primarily in loans and loans held for sale, and temporary
investments in interest-bearing balances due from banks and
federal funds sold. Funds were provided for these changes
primarily by an increase in total deposits.
At June 30, 1995, total assets increased 10.4%, or
approximately $26.8 million, over total assets at December 31,
1994. An increase in loans and loans held for sale of $18.3
million represented the majority of the increase in total assets.
The increase in loans and loans held for sale was primarily due
to increased commercial loan and real estate construction
activity. The Pacific Corporate Center Branch of the Bank
continues to provide the majority of the new loan activity;
however, increases in loan activity were also noted in the
Eugene, Springfield and Cottage Grove markets.
-11-
At June 30, 1995, Bancorp also held $14.9 million in
temporary investments in interest-bearing balances due from banks
and federal funds sold, which represented the majority of the
increase recognized in cash and cash equivalents as compared to
December 31, 1994. Interest-bearing balances due from banks and
federal funds sold represent overnight investments of surplus
funds, which can fluctuate widely on a day-to-day basis depending
on cash needs.
Available-for-sale securities decreased approximately
$2.0 million at June 30, 1995 as compared to December 31, 1994.
The decrease represented scheduled bond maturities and bonds
called for payment, which was offset in part by the increase in
the market valuation of the available-for-sale securities at June
30, 1995 as compared to December 31, 1994. In addition, during
the quarter ended June 30, 1995, Bancorp sold approximately $3.0
million of small-denomination bonds and reinvested the funds in
larger-denomination issues.
Premises and equipment increased $2.1 million at June 30,
1995 as compared to December 31, 1994. This increase was
primarily attributable to construction of the permanent facility
to house the Pacific Corporate Center Branch of the Bank, but was
also due in part to remodelling of a floor of the Eugene Main
Branch to house two departments of the Bank. The Pacific
Corporate Center Branch of the Bank was completed during the
quarter, and the branch relocated to its permanent facility and
opened for business on June 12, 1995.
Other assets decreased $1.4 million at June 30, 1995 as
compared to December 31, 1994. This decrease was primarily
attributable to a decrease in deferred tax assets as a result of
the increase in the market valuation of Bancorp's available-for-
sale securities.
Bancorp experienced an increase in deposits of $20.7 million
during the first six months of 1995. This increase resulted from
increases in interest-bearing demand deposits ($14.5 million) and
time deposits ($13.6 million), which was offset in part by a
decrease in demand deposits ($6.6 million). Management believes
that the increases in interest-bearing demand and time deposits
were due to the higher interest rates generally paid on those
deposits, together with Bancorp's increased business activities
resulting from additional lending activities.
All other changes experienced in asset and liability
categories during the six months of 1995 were comparatively
modest.
-12-
MATERIAL CHANGES IN RESULTS OF OPERATIONS
-----------------------------------------
Total interest income increased approximately $3.1 million
for the six months and approximately $1.4 million for the quarter
ended June 30, 1995 as compared to the same periods in 1994.
These increases were primarily due to the increase in loans and
loans held for sale held during 1995 as compared to 1994.
Total interest expense similarly increased approximately
$1.8 million for the six months and approximately $963,400 for
the quarter ended June 30, 1995 as compared to the 1994 periods.
These increases were primarily due to the increase in deposits
held during 1995 as compared to 1994, but were also due to
increased short-term borrowings during the 1995 periods. In
addition, Bancorp issued $9.2 million in Convertible Debentures
during April 1994. Interest expense on long-term debt,
therefore, increased for the six months ended June 30, 1995 as
compared to the 1994 six-month period, but was comparable for the
quarterly periods.
The increase in interest earned, offset in part by the
increase in interest paid, served to increase Bancorp's net
interest income by approximately $1.3 million (or 19%) for the
six-month period, and approximately $460,300 (or 13%) for the
second quarter of 1995 over the comparable periods of 1994. Net
income per common share (primary) increased to $.46 for the first
six months of 1995 from $.39 for the first six months of 1994,
and increased to $.24 from $.19 for the comparable second quarter
periods.
Noninterest income decreased approximately $422,200 for the
six months and approximately $154,800 for the quarter ended
June 30, 1995 as compared to the 1994 periods. These decreases
were primarily attributable to decreases in other noninterest
income and gains on sales of loans, which were offset in part by
modest increases in service charges on deposit accounts and gains
on sales of available-for-sale securities.
Other noninterest income decreased approximately $215,400
for the six months and approximately $155,600 for the quarter
ended June 30, 1995 as compared to the 1994 periods. These
decreases were attributable in part to lease income received
(approximately $110,000 for the six months ended June 30, 1994)
from the former Bancorp and Bank head office facility which was
reclassified as an other asset, available-for-sale, after Bancorp
and the Bank vacated the building to occupy a new head office
facility. This building was sold in September 1994. Other
noninterest income also decreased for the six months and the
quarter ended June 30, 1995 due to a decrease in insurance sales
commissions received during the 1995 periods.
-13-
Gains on sales of loans decreased approximately $235,100 for
the six months and approximately $36,600 for the quarter ended
June 30, 1995 as compared to the 1994 periods. Bancorp's loans
held for sale consist primarily of residential mortgage loans
originated through Mortgage Co.
Noninterest expense increased approximately $175,000 for the
six months ended June 30, 1995 as compared to the comparable 1994
period, but decreased approximately $19,100 for the second
quarter of 1995 as compared to 1994. The increase for the six-
month period was primarily attributable to increases in salaries
and employee benefits and premises and equipment, which was
offset in part by a decrease in legal and professional fees. The
decrease for the quarterly period was primarily due to decreases
in legal and professional and other noninterest expenses.
Salaries and employee benefits increased approximately
$252,000 during the first six months of 1995 as compared to the
1994 six-month period, which was primarily due to additions to
the Bank's staff to conduct the expanding business of the Pacific
Corporate Center Branch. Salaries and employee benefits also
increased during the second quarter of 1995 as compared to the
1994 quarter; however, the amount of this increase was only
approximately $79,700.
Premises and equipment expense increased approximately
$173,600 during the six months and approximately $104,800 during
the quarter ended June 30, 1995 as compared to the 1994 periods.
These increases were primarily due to the additional expenses
incurred in the Bank's occupancy of the Pacific Corporate Center
Branch temporary facility.
Legal and professional fees decreased during the six months
and the quarter ended June 30, 1995 as compared to the 1994
periods. These decreases were due to the resolution of
litigation outstanding against the Bank during the latter
quarters of 1994.
LOAN LOSS PROVISION
-------------------
During the six months ended June 30, 1995, Bancorp charged a
$150,000 loan loss provision to operations, as compared to
$169,500 charged during the six months ended June 30, 1994.
Loans charged off, net of recoveries, during the six months ended
June 30, 1995 decreased to $5,414, as compared to net charge-offs
of $20,884 for the 1994 six-month period.
-14-
Management believes that the reserve for loan losses is
adequate for potential loan losses, based on management's
assessment of various factors, including present delinquent and
non-performing loans, past history of industry loan loss
experience, and present and anticipated future economic trends
impacting the areas and customers served by Bancorp.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Bancorp's principal subsidiary, Centennial Bank, has adopted
policies to maintain a relatively liquid position to enable it to
respond to changes in the Bank's needs and financial environment.
Generally, the Bank's major sources of liquidity are customer
deposits, sales and maturities of investment securities, the use
of federal funds markets and net cash provided by operating
activities. Scheduled loan repayments are a relatively stable
source of funds, while deposit inflows and unscheduled loan
prepayments, which are influenced by general interest rate
levels, interest rates available on other investments,
competition, economic conditions and other factors, are not.
In July 1994, the Bank opened a branch in Tigard, Oregon in
a temporary facility. Management entered into a long-term ground
lease in the Tigard, Oregon area and completed construction of a
permanent facility to house the branch in June 1995.
At June 30, 1995, Bancorp's Tier 1 and total risk-based
capital ratios under the Federal Reserve Board's ("FRB") risk-
based capital guidelines were approximately 10.4% and 11.2%,
respectively. The FRB's minimum risk-based capital ratio
guidelines for Tier 1 and total capital are 4% and 8%,
respectively.
At June 30, 1995, Bancorp's capital-to-assets ratio under
leverage ratio guidelines was approximately 7.9%. The FRB's
current minimum leverage capital ratio guideline is 3%.
-15-
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
------------------------------------------------------------
Centennial Bancorp held its annual meeting of shareholders
on May 18, 1995. At the meeting, Dan Giustina was elected, and
Cordy H. Jensen, Robert L. Newburn, Brian B. Obie and Richard C.
Williams were reelected, to the Board of Directors for one-year
terms. Voting on the election of directors was as follows:
Votes Votes Broker
For Withheld Non-Votes
--------- -------- ---------
Dan Giustina 2,865,773 14,489 -0-
Cordy H. Jensen 2,867,333 12,929 -0-
Robert L. Newburn 2,868,829 11,433 -0-
Brian B. Obie 2,866,525 13,737 -0-
Richard C. Williams 2,868,829 11,433 -0-
Item 6. Exhibits and Reports on Form 8-K.
-----------------------------------------
None.
-16-
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
CENTENNIAL BANCORP
Dated: August 14, 1995 /s/ Richard C. Williams
-----------------------------------
Richard C. Williams
President & Chief Executive Officer
Dated: August 14, 1995 /s/ Michael J. Nysingh
-----------------------------------
Michael J. Nysingh
Chief Financial Officer
-17-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM CENTENNIAL BANCORP'S CONSOLIDATED FINANCIAL STATEMENTS
CONTAINED IN ITS QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD
ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 20,278,076
<INT-BEARING-DEPOSITS> 6,000,000
<FED-FUNDS-SOLD> 8,950,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 56,835,661
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 177,192,966
<ALLOWANCE> (1,844,716)
<TOTAL-ASSETS> 284,408,460
<DEPOSITS> 236,998,737
<SHORT-TERM> 13,354,340
<LIABILITIES-OTHER> 1,837,173
<LONG-TERM> 9,200,000
<COMMON> 8,448,596
0
0
<OTHER-SE> 14,569,614
<TOTAL-LIABILITIES-AND-EQUITY> 284,408,460
<INTEREST-LOAN> 10,014,919
<INTEREST-INVEST> 1,692,294
<INTEREST-OTHER> 138,358
<INTEREST-TOTAL> 11,845,571
<INTEREST-DEPOSIT> 3,347,606
<INTEREST-EXPENSE> 4,080,420
<INTEREST-INCOME-NET> 7,765,151
<LOAN-LOSSES> 150,000
<SECURITIES-GAINS> 20,363
<EXPENSE-OTHER> 5,733,699
<INCOME-PRETAX> 2,912,349
<INCOME-PRE-EXTRAORDINARY> 1,975,849
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,975,849
<EPS-PRIMARY> .46
<EPS-DILUTED> .43
<YIELD-ACTUAL> 0
<LOANS-NON> 726,000
<LOANS-PAST> 179,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,700,130
<CHARGE-OFFS> 23,214
<RECOVERIES> 17,800
<ALLOWANCE-CLOSE> 1,844,716
<ALLOWANCE-DOMESTIC> 1,844,716
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
