<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 September 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 October 31, 1995.
-2-
<PAGE>
CENTENNIAL BANCORP
FORM 10-Q
SEPTEMBER 30, 1995
INDEX
-----
Page
PART I - FINANCIAL INFORMATION Reference
- ------------------------------ ---------
Condensed Consolidated Balance Sheets as of 4
September 30, 1995 and December 31, 1994
Condensed Consolidated Statements of Income for 5
the nine months and the quarter ended
September 30, 1995 and 1994
Condensed Consolidated Statements of Cash Flows 6
for the nine months ended September 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 - 15
Loan Loss Provision 15
Liquidity and Capital Resources 15 - 16
PART II - OTHER INFORMATION
- ---------------------------
Item 6 - Exhibits and Reports on Form 8-K 17
Signatures 18
-3-
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
------------- -------------
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents:
Cash and due from banks $ 19,488,642 $ 19,783,038
Interest-bearing balances due from banks 6,000,000 5,575,000
Federal funds sold 9,520,000 --
------------ ------------
Total cash and cash equivalents 35,008,642 25,358,038
Available-for-sale securities 71,839,925 58,794,836
Loans 177,841,222 160,136,068
Reserve for loan losses (1,860,411) (1,700,130)
------------ ------------
Loans, net 175,980,811 158,435,938
Loans held for sale 4,058,043 1,874,728
Accrued interest receivable 2,036,931 1,827,406
Premises and equipment, net 8,892,397 6,763,983
Intangible assets 561,065 876,655
Other assets 2,646,281 1,984,048
Deferred tax asset 468,630 1,721,129
------------ ------------
$301,492,725 $257,636,761
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits:
Demand $ 63,220,315 $ 63,699,442
Interest-bearing demand 89,023,520 79,942,836
Savings 15,110,321 15,888,076
Time 82,083,150 56,789,446
------------ ------------
Total deposits 249,437,306 216,319,800
Short-term borrowings 15,113,757 11,839,608
Accrued interest and other liabilities 3,226,615 1,072,022
Long-term debt 9,200,000 9,200,000
------------ ------------
Total liabilities 276,977,678 238,431,430
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 6,621,922 7,067,963
Retained earnings 9,318,499 6,106,378
Net unrealized gain (loss) on securities available-
for-sale, net of deferred income taxes 126,030 (1,917,460)
------------ ------------
Total shareholders' equity 24,515,047 19,205,331
------------ ------------
$301,492,725 $257,636,761
============ ============
</TABLE>
See accompanying notes.
-4-
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
The Quarter Ended The Nine Months Ended
September 30, September 30,
--------------------------- --------------------------
1995 1994 1995 1994
---------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $5,314,441 $4,163,912 $15,329,360 $11,243,173
Interest on investment securities 868,398 794,743 2,560,692 2,405,281
Other interest income 285,158 85,533 423,516 163,631
---------- ---------- ----------- -----------
Total interest income 6,467,997 5,044,188 18,313,568 13,812,085
INTEREST EXPENSE
Interest on deposits 2,022,717 1,167,725 5,370,323 3,179,938
Interest on short-term borrowings 219,148 2,913 635,546 55,478
Interest on long-term debt 147,553 183,889 463,969 378,382
---------- ---------- ----------- -----------
Total interest expense 2,389,418 1,354,527 6,469,838 3,613,798
---------- ---------- ----------- -----------
NET INTEREST INCOME 4,078,579 3,689,661 11,843,730 10,198,287
Loan loss provision 125,000 79,000 275,000 248,500
---------- ---------- ----------- -----------
Net interest income after
loan loss provision 3,953,579 3,610,661 11,568,730 9,949,787
NONINTEREST INCOME
Service charges on deposit accounts 218,976 213,763 680,320 630,873
Other 236,194 278,427 447,814 705,413
Loan servicing fees 82,782 112,320 309,196 360,412
Gains on sales of loans 148,695 154,400 259,851 500,636
Gains on sales of investment securities 44,272 59,659 64,635 74,318
--------- ---------- ----------- -----------
Total noninterest income 730,919 818,569 1,761,816 2,271,652
NONINTEREST EXPENSE
Salaries and employee benefits 1,580,066 1,735,017 4,806,688 4,709,611
Premises and equipment 460,732 344,920 1,266,061 976,674
Legal and professional 156,542 140,852 409,870 565,677
Insurance 8,834 131,324 279,986 387,117
Advertising 94,556 85,800 253,344 264,239
Printing and stationery 76,249 72,041 211,102 209,251
Communications 71,343 72,689 228,875 230,140
Other 433,345 370,516 1,159,440 1,169,106
---------- ---------- ----------- -----------
Total noninterest expense 2,881,667 2,953,159 8,615,366 8,511,815
---------- ---------- ----------- -----------
Income before income taxes 1,802,831 1,476,071 4,715,180 3,709,624
Provision for income taxes 566,600 482,925 1,503,100 1,196,521
---------- ---------- ----------- -----------
NET INCOME $1,236,231 $ 993,146 $ 3,212,080 $ 2,513,103
========== ========== =========== ==========
Earnings per common share:
Primary $ .28 $ .23 $ .74 $ .58
Fully diluted $ .26 $ .22 $ .69 $ .57
Weighted average shares outstanding:
Primary 4,355,600 4,339,612 4,341,924 4,322,144
Fully diluted 5,167,030 5,151,042 5,153,354 4,785,818
</TABLE>
See accompanying notes.
-5-
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
The Nine Months Ended
September 30,
--------------------------
1995 1994
------------ ------------
<S> <C> <C>
Net cash provided by operating activities $ 6,601,364 $ 5,168,265
Cash flows from investing activities:
Net increase in loans (17,718,806) (18,704,195)
Investment security purchases (26,665,385) (13,457,430)
Proceeds from investment securities:
Maturities 10,057,198 6,841,211
Sales 3,462,123 8,303,380
Purchases of premises and equipment (2,531,690) (556,015)
----------- -----------
Net cash used by investing activities (33,396,560) (17,573,049)
Cash flows from financing activities:
Net increase in deposits 33,117,506 12,475,383
Net increase in short-term borrowings 3,274,149 108,154
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 30,570
----------- -----------
Net cash provided by financing activities 36,445,800 14,824,846
----------- -----------
Net increase in cash and cash equivalents 9,650,604 2,420,062
Cash and cash equivalents at beginning of period 25,358,038 24,820,005
----------- -----------
Cash and cash equivalents at end of period $35,008,642 $27,240,067
=========== ===========
</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. On August 14, 1995, Bancorp sold substantially all
of the assets of Harding Fletcher. See Note 5 to these
condensed consolidated financial statements. Harding
Fletcher originated and serviced 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 (292,472 shares, as adjusted for stock splits
declared subsequent to the merger) for all of the
outstanding shares of CG Bancorp common stock.
-7-<PAGE>
The merger has been accounted for as a pooling of interests.
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
September 30, 1994
(unaudited):
Interest income $ 4,566 $ 478 $ 5,044
Net income 918 75 993
Nine months ended
September 30, 1994
(unaudited):
Interest income 12,410 1,402 13,812
Net income 2,299 214 2,513
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>
September 30, December 31,
1995 1994
------------ ------------
Real estate-mortgage $ 52,899,432 $ 54,916,880
Real estate-construction 42,691,000 29,337,387
Commercial 72,673,058 66,514,955
Installment 6,306,119 6,950,813
Lease financing 3,552,417 2,686,227
Other 257,771 329,899
------------ ------------
178,379,797 160,736,161
Less deferred loan fees (538,575) (600,093)
------------ ------------
$177,841,222 $160,136,068
============ ============
Loans held for sale of $4,058,043 and $1,874,728 at
September 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 nine months ended September 30:
1995 1994
----------- -----------
Balance at beginning of period $1,700,130 $1,514,314
Provision charged to operations 275,000 248,500
Recoveries 19,668 11,827
Loans charged off (134,387) (131,398)
---------- ----------
Balance at end of period $1,860,411 $1,643,243
========== ==========
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 September 30, 1995 and
December 31, 1994 were approximately $515,000 and $693,000,
respectively.
-9-
<PAGE>
Loans past due 90 days or more on which Bancorp continued to
accrue interest were approximately $567,000 at September 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
September 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
the 1994 acquisition of CG Bancorp and stock splits and
stock dividends declared prior to September 30, 1995.
5. Sale of Subsidiary
------------------
On August 8, 1995, Bancorp entered into an Asset Purchase
Agreement pursuant to which it agreed to sell substantially
all the assets of Harding Fletcher, its wholly owned
subsidiary, to an unaffiliated purchaser. The transaction
closed August 14, 1995. Pursuant to the Agreement, the
purchase price was approximately $741,000, 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.
-10-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
- --------
Centennial Bancorp reported net income of $3,212,080, or
$.74 per share (primary), for the nine months ended September 30,
1995. This represented a 28% increase in net income, as compared
to $2,513,103, or $.58 per share, for the nine months ended
September 30, 1994. Net income of $1,236,231, or $.28 per share,
for the quarter ended September 30, 1995 represented a 24%
increase in net income as compared to $993,146, or $.23 per share
for the quarter ended September 30, 1994. The increased earnings
during the nine months and the quarter ended September 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 nine
months and the third 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.
MATERIAL CHANGES IN FINANCIAL CONDITION
- ---------------------------------------
Material changes in financial condition for the nine months
ended September 30, 1995 include an increase in total assets,
primarily in loans and loans held for sale, available-for-sale
securities and federal funds sold. Funds were provided for these
changes primarily by an increase in total deposits.
At September 30, 1995, total assets increased 17.0%, or
approximately $43.9 million, over total assets at December 31,
1994. An increase of $19.9 million in loans and loans held for
sale was the largest component 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 near Portland
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.
Available-for-sale securities increased approximately
$13.0 million at September 30, 1995 as compared to December 31,
1994. The increase represented purchases of, primarily, U.S.
Government agency securities.
-11-
<PAGE>
At September 30, 1995, Bancorp held $15.5 million in
temporary investments in interest-bearing balances due from banks
and federal funds sold. The increase in these categories
represented the increase in cash and cash equivalents as compared
to cash and cash equivalents at 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.
Premises and equipment increased $2.1 million at
September 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 second quarter of 1995, and the branch relocated to
its permanent facility and opened for business on June 12, 1995.
Bancorp's deferred tax asset decreased $1.3 million at
September 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 $33.1 million
during the first nine months of 1995. This increase resulted
from increases in interest-bearing demand deposits ($9.1 million)
and time deposits ($25.3 million), which were offset in part by
modest decreases in demand and savings deposits. 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.
Short-term borrowings increased $3.3 million at
September 30, 1995 as compared to December 31, 1994. This
increase is to maintain liquidity and assure available funds to
support further growth in loans and loans held for sale.
All other changes experienced in asset and liability
categories during the first nine months of 1995 were
comparatively modest.
-12-
<PAGE>
MATERIAL CHANGES IN RESULTS OF OPERATIONS
- -----------------------------------------
Total interest income increased approximately $4.5 million
for the nine months and approximately $1.4 million for the
quarter ended September 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 also increased approximately
$2.9 million for the nine months and approximately $1.0 million
for the quarter ended September 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 nine months ended September 30, 1995
as compared to the 1994 nine-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 $1.6 million for the nine-month
period, and approximately $388,900 for the third quarter of 1995
over the comparable periods of 1994. Net income per common share
(primary) increased to $.74 for the first nine months of 1995
from $.58 for the first nine months of 1994, and increased to
$.28 from $.23 for the comparable third quarter periods.
Noninterest income decreased approximately $509,800 for the
nine months and approximately $87,700 for the quarter ended
September 30, 1995 as compared to the 1994 periods. These
decreases were primarily attributable to decreases in other
noninterest income, loan servicing fees and gains on sales of
loans, which were offset in part by a modest increase in service
charges on deposit accounts.
Other noninterest income decreased approximately $257,600
for the nine months and approximately $42,200 for the quarter
ended September 30, 1995 as compared to the 1994 periods. These
decreases were attributable in part to lease income received
(approximately $110,000 for the nine months ended September 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 nine months and
the quarter ended September 30, 1995 due to a decrease in
insurance sales commissions received during the 1995 periods.
-13-<PAGE>
Loan servicing fees decreased approximately $51,200 for the
nine months and approximately $29,500 for the quarter ended
September 30, 1995 as compared to the 1994 periods. These
decreases were attributable to a decrease in Harding Fletcher's
loan servicing portfolio, and the sale of substantially all of
the assets of Harding Fletcher in August 1995.
Gains on sales of loans decreased approximately $240,800 for
the nine months and approximately $5,700 for the quarter ended
September 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 $103,600 for the
nine months ended September 30, 1995 as compared to the
comparable 1994 period, but decreased approximately $71,500 for
the third quarter of 1995 as compared to 1994. The increase for
the nine-month period was primarily attributable to increases in
salaries and employee benefits and premises and equipment, which
was offset in part by decreases in legal and professional fees
and insurance. The decrease for the quarterly period was
primarily due to decreases in salaries and employee benefits and
insurance.
Salaries and employee benefits increased approximately
$97,100 during the first nine months of 1995 as compared to the
1994 nine-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
decreased during the third quarter of 1995 as compared to the
1994 quarter, due to a decrease in Harding Fletcher commission
payroll and the sale of Harding Fletcher.
Premises and equipment expense increased approximately
$289,400 during the nine months and approximately $115,800 during
the quarter ended September 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 permanent facility.
Legal and professional fees decreased approximately $155,800
during the nine months ended September 30, 1995, but increased
approximately $15,700 for the quarter then ended as compared to
the 1994 periods. The decrease during the nine-month period was
due to the resolution of litigation outstanding against the Bank
during the latter quarters of 1994, while the increase
experienced during the third quarter was due to the sale of
Harding Fletcher.
-14-
<PAGE>
Insurance expense decreased approximately $107,100 during
the nine months and approximately $122,500 during the quarter
ended September 30, 1995 as compared the 1994 periods. These
decreases were due to an assessment rate reduction on Federal
Deposit Insurance coverage.
LOAN LOSS PROVISION
- -------------------
During the nine months ended September 30, 1995, Bancorp
charged a $275,000 loan loss provision to operations, as compared
to $248,500 charged during the nine months ended September 30,
1994. Loans charged off, net of recoveries, of $114,700 during
the nine months ended September 30, 1995 remained fairly constant
as compared to net charge-offs of $119,600 for the 1994 nine-
month period.
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
nonperforming 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 September 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 10.5% and 11.4%,
respectively. The FRB's minimum risk-based capital ratio
-15-
<PAGE>
guidelines for Tier 1 and total capital are 4% and 8%,
respectively.
At September 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%.
-16-
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
- -----------------------------------------
None.
-17-
<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: November 2, 1995 /s/ Richard C. Williams
-----------------------------------
Richard C. Williams
President & Chief Executive Officer
Dated: November 2, 1995 /s/ Michael J. Nysingh
-----------------------------------
Michael J. Nysingh
Chief Financial Officer
-18-
<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 SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1995
<CASH> 19,488,642
<INT-BEARING-DEPOSITS> 6,000,000
<FED-FUNDS-SOLD> 9,520,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 71,839,925
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 177,841,222
<ALLOWANCE> (1,860,411)
<TOTAL-ASSETS> 301,492,725
<DEPOSITS> 249,437,306
<SHORT-TERM> 15,113,757
<LIABILITIES-OTHER> 3,226,615
<LONG-TERM> 9,200,000
<COMMON> 8,448,596
0
0
<OTHER-SE> 16,066,451
<TOTAL-LIABILITIES-AND-EQUITY> 301,492,725
<INTEREST-LOAN> 15,329,360
<INTEREST-INVEST> 2,560,692
<INTEREST-OTHER> 423,516
<INTEREST-TOTAL> 18,313,568
<INTEREST-DEPOSIT> 5,370,323
<INTEREST-EXPENSE> 6,469,838
<INTEREST-INCOME-NET> 11,843,730
<LOAN-LOSSES> 275,000
<SECURITIES-GAINS> 64,635
<EXPENSE-OTHER> 8,615,366
<INCOME-PRETAX> 4,715,180
<INCOME-PRE-EXTRAORDINARY> 3,212,080
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,212,080
<EPS-PRIMARY> .74
<EPS-DILUTED> .69
<YIELD-ACTUAL> 0
<LOANS-NON> 515,000
<LOANS-PAST> 567,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,700,130
<CHARGE-OFFS> 134,387
<RECOVERIES> 19,668
<ALLOWANCE-CLOSE> 1,860,411
<ALLOWANCE-DOMESTIC> 1,860,411
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
