Certain Factors to Consider in Connection
                         with Forward-Looking Statements

                                   March 2000


         From time to time, Centennial Bancorp ("Bancorp," "we," "us" or "our")
and our representatives may make forward-looking statements (as such term is
defined in the Private Securities Litigation Reform Act of 1995 (the "Act"))
regarding, among other things, expected future revenues or earnings,
projections, plans, future performance and other estimates relating to us.
Forward-looking statements may be included in our reports filed under the
Securities Exchange Act of 1934, as amended, in press releases or in oral
statements made with the approval of an authorized executive officer or director
of Bancorp.

         We invoke to the fullest extent possible the protection of the Act and
the judicially created "bespeaks caution" doctrine with respect to such
statements. Accordingly, we are filing this Exhibit 99.1, which lists certain
factors that may cause our actual results to differ materially from the results
indicated in our forward-looking statements.

         The following list is not necessarily exhaustive. Bancorp and our
subsidiaries, Centennial Bank and Centennial Mortgage Co., operate in a rapidly
changing environment, and new risk factors emerge periodically. There can be no
assurance that this Exhibit lists all material risks to us at any specific time.

         Our actual results may differ materially from those described in our
forward-looking statements as a result of various factors, including those
listed below. Readers are cautioned not to unduly rely on any forward-looking
statement, which speaks only as of the date on which it is made. We do not
intend to update our forward-looking statements.

CHANGES IN INTEREST RATES OR GENERAL ECONOMIC CONDITIONS COULD REDUCE OUR
   PROFITS

         Our results of operations and those of our subsidiaries may be
materially and adversely affected by changes in prevailing economic conditions,
including declines in real estate market values, rapid changes in interest rates
or changes in the monetary and fiscal policies of the federal government. Our
profitability depends on the difference between the amount of interest we earn
on investments and loans, and the amount of interest we pay on deposits and
other liabilities. This difference is referred to as interest rate spread. Any
decline in the economy in our market areas could have an adverse effect on us.
Like most financial institutions, our net interest spread and margin will be
affected by general economic conditions and other factors that influence
interest rates. Our assets and liabilities will be affected differently by a
given change in interest rates. For example, an increase or decrease in rates,
the terms of our loans, or the mix of adjustable- and fixed-rate loans in our
portfolio could have a positive or negative effect on our net income, capital
and liquidity. A change in market interest rates can also have a significant
impact on our ability to grow. Changes in rates may encourage depositors to
withdraw deposit

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account funds to invest in other alternatives, which may limit the funds
available to us for making loans. Additionally, changes in rates could
discourage businesses and customers from seeking new loans or could encourage
them to pay off existing loans with us through a refinancing with another
financial institution. We cannot predict or control changes in interest rates.
Negative developments in the economy, or our inability to respond to such
changes, could adversely affect Bancorp and our subsidiaries.

         Most of the loans originated by Centennial Bank are made to borrowers
within the Portland and the Eugene/Springfield, Oregon areas. The bank also has
branch offices in Vancouver, Washington and Salem, Oregon. Adverse changes in
economic conditions in the Portland/Vancouver or Eugene/Springfield areas could
impair our ability to collect loans and could otherwise have a negative effect
on our financial condition.

WE MAY NOT BE ABLE TO SUCCESSFULLY IMPLEMENT OUR GROWTH STRATEGY

         We intend to continue to pursue an aggressive growth strategy focused
primarily upon our ability to develop new account relationships, to establish
new Centennial Bank branches in Oregon and Washington, to make acquisitions, and
to generate loans and deposits. The success of our growth strategy will depend
on our ability to manage credit and liquidity risks, control costs and provide
competitive products and services while rapidly expanding our geographic
presence by branching or acquiring other banks or branches of banks. There can
be no assurance that we will be successful in increasing our volume of loans and
deposits at acceptable risk levels and upon acceptable terms, expanding our
asset base, managing the costs and implementation risks associated with our
growth strategy, integrating any acquired institutions or branches or preventing
deposit erosion at acquired institutions or branches. Also, there can be no
assurance that our expansion plans, when implemented, will be profitable.
Acquisitions and branching by Bancorp will be subject to regulatory approvals,
and there can be no assurance that we will succeed in securing such approvals.
Our ability to pursue our growth strategy may also be adversely affected by
general economic conditions.

         As part of our overall growth strategy, we from time to time consider
acquiring other banks. Any acquisition by Bancorp would create risks and
uncertainties, including the possible issuance of additional shares of common
stock to pay for such acquisition, which issuance may result in dilution to our
current shareholders, the diversion of management's attention to acquisition
negotiations and, if an acquisition were consummated, our ability to effectively
assimilate the acquired bank and branches.

         The banking industry generally has seen a trend toward the automation
of delivery of banking services, a reduction in the number of full-service
branch offices and a de-emphasis on personal service. This trend appears to be
the result of efforts by banks to reduce costs and increase efficiency. While we
seek to improve our capacity to use technological innovations, our growth
strategy is based more on the belief that customer demand for personal contact
and strategically placed branch offices will continue for the foreseeable
future. Thus, we continue to expand our branch network and the availability to
customers of well-trained and highly motivated personnel at a time when many
banks are consolidating their branch networks and


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<PAGE>

automating customer responses. There can be no assurance that our strategy will
be successful or that technological advances by our competitors will not result
in our loss of customer relationships. As a result of our strategy, certain of
our costs for providing banking services may be higher than those of many of our
competitors for the foreseeable future.

         Bancorp's growth strategy requires, among other things, expanded
operational systems, the implementation of new control procedures, and success
in hiring and retaining skilled employees. We believe that our capital,
borrowings, and expected earnings will be sufficient to support our operations
and anticipated expansion and to meet all regulatory requirements for the
foreseeable future. There can be no assurance that we will be successful in
implementing, or will have the necessary regulatory capital to implement, our
growth strategy.

OUR CUSTOMERS MAY NOT REPAY THEIR LOANS

         The risk of borrowers not paying their loans is inherent in commercial
banking. Loan defaults may have a material adverse effect on our earnings and
overall financial condition. The risk of loss is affected by general economic
conditions, the type of loan, the borrower's overall ability to repay the loan,
and the quality of the collateral, if any, provided to us to secure the loan. We
offer a full range of loans to our customers. Some types of loans carry a
greater risk of default than other loans.

         Bancorp's loan portfolio consists primarily of commercial loans (not
secured by real estate), real estate construction loans and real estate mortgage
loans (including commercial loans secured by real estate). Commercial loans that
are secured by property other than real estate generally are considered to
involve a higher degree of risk than loans secured by real estate, primarily
because the non-real-estate collateral may be difficult to repossess and
liquidate. We focus on small- to medium-sized businesses. This results in a
larger concentration by Bancorp of loans to such businesses. As a result, we may
assume greater lending risks than institutions that tend to make loans to larger
businesses or institutions that make loans primarily to consumers. Because
payment of commercial loans is typically dependent on the success of the
borrower's business, commercial loans are affected more by adverse general
economic conditions than real estate loans.

         Construction lending also is subject to substantial risks. It is
generally considered to involve a higher degree of risk than long-term financing
on improved, occupied real estate. The risk of loss on construction loans
depends largely on the accuracy of the initial estimate of the property's value
at completion of construction or development and the estimated cost (including
interest) of construction. If the estimate of construction costs proves to be
inaccurate, we may have to advance funds beyond the amount we originally
committed to permit completion of the project and to protect our security
position. We may also be confronted, at or prior to maturity of the loan, with a
project of insufficient value to ensure full repayment. In addition, if the
borrower is unable to obtain permanent financing in a timely manner, the
borrower may not be able to repay the construction loan.


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<PAGE>


WE MAY NOT ADEQUATELY ALLOW FOR LOAN LOSSES

         Our allowance for loan losses is maintained at a level we consider
adequate to absorb anticipated losses. The amount of future losses, however, may
be affected by changes in economic, operating and other conditions, including
changes in interest rates, which may be beyond our control, and future losses
may exceed our current estimates. There can be no assurance that our allowance
will be adequate to cover our actual losses.

WE MAY BE LIABLE IF CENTENNIAL BANK IS UNDERCAPITALIZED

         Under federal law, a bank holding company may be required to guarantee
a capital plan filed by an undercapitalized bank subsidiary with its primary
regulator. If the bank defaults under the plan, the holding company may be
required to contribute to the capital of the bank an amount equal to the lesser
of 5% of the bank's assets at the time it became undercapitalized or the amount
necessary to bring the bank into compliance with applicable standards. We are
the sole shareholder of Centennial Bank.

WE MAY NOT BE ABLE TO SUCCESSFULLY COMPETE IN OUR MARKETS

         The banking and mortgage lending businesses in Oregon and Washington
are highly competitive. We compete for loans and deposits with other commercial
banks, savings banks, savings and loan associations, finance companies, money
market funds, brokerage firms, credit unions and other nonfinancial
institutions. Many of these competitors have substantially greater resources
than Bancorp. Many of our competitors have substantially larger lending limits
than we do and offer certain services, including trust and international banking
services, that we do not provide. The larger institutions in our markets have
competitive advantages over us in that they have higher public visibility and
are able to maintain advertising and marketing activities on a much larger scale
than we can economically sustain. By law, lending limits are dependent upon the
capital of the financial institution, giving larger banks an additional
competitive advantage with respect to loan applications that are in excess of
Centennial Bank's legal lending limits.

         During the past several years, we capitalized on the marketing
opportunities created by the consolidation of the banking industry, as the
larger institutions were perceived to de-emphasize the small- to medium-size
business and professional market, which is our primary focus. Several banks,
which focus on the same types of customers as we do, have been formed in our
market areas during the last few years. This growing number of community banks
and a new emphasis by larger institutions on this market segment has intensified
competition.

         In addition, out-of-state banks and bank holding companies
headquartered anywhere in the United States are permitted to acquire Oregon
state-chartered banks that have been operating for three or more years.
Statewide branch banking also is permitted in Oregon and Washington. As a result
of such interstate banking and branch banking, Centennial Bank and Centennial
Mortgage may experience increased competition in their market areas.


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<PAGE>

         In addition, the Gramm-Leach-Bliley Act, enacted on November 12, 1999
(the "GLB Act"), eliminates several barriers to affiliation among providers of
financial services and may affect the competitive environment in which Bancorp
operates in substantial and unpredictable ways. Effective March 11, 2000, the
GLB Act permits certain business combinations between banks, insurance
companies, securities firms, and other financial service providers that were not
permitted previously. Using the Financial Holding Company structure created by
the GLB Act, insurance companies and securities firms may now compete more
directly with banks and bank holding companies, and attempt to acquire existing
financial institutions. Because Centennial Bank is "adequately capitalized," as
defined by the regulations, but not "well capitalized," we do not currently
qualify to become a "financial holding company" under the GLB Act, which would
have permitted us to engage in a broader range of financial activities (e.g.,
insurance underwriting and agency services, investment advisory services,
merchant banking, investment banking and underwriting activities, dealing or
making a market in securities, etc.). Bancorp cannot predict the changes in the
competitive environment or the financial condition of Bancorp that may occur as
a direct or indirect result of the GLB Act and the increased competition it may
create.

WE MAY NOT BE ABLE TO IMPLEMENT TECHNOLOGICAL IMPROVEMENTS REQUIRED BY OUR
  CUSTOMERS

         The banking industry is undergoing rapid technological changes with
frequent introductions of new technology-driven products and services. In
addition to better serving customers, effective use of technology increases
efficiency and enables banks to reduce costs. Our future success will depend in
part on our ability to address the needs of our customers by using technology to
provide products and services that will satisfy customer demands for convenience
as well as create additional efficiencies in our operations. Many of our
competitors have substantially greater resources to invest in technological
improvements and highly skilled technical personnel. To be competitive, we may
need to spend significant amounts on computer hardware and software, and for
technical personnel. There can be no assurance that we will be able to
effectively implement new technology-driven products and services or be
successful in marketing these products and services to our customers.

GOVERNMENT REGULATION MAY LIMIT OUR OPERATIONS AND REDUCE OUR REVENUES OR
  PROFITS

         Bancorp and our subsidiaries, particularly Centennial Bank, are subject
to extensive federal and state legislation, regulation and supervision. These
and other restrictions limit the manner in which Bancorp and Centennial Bank may
conduct their businesses and obtain financing. These laws are intended primarily
to protect depositors and are not for the benefit of shareholders. In addition,
the burdens and restrictions imposed by federal and state banking regulations
may place Centennial Bank at a competitive disadvantage compared to competitors
who are less regulated.

         Legislation and regulations have had and will continue to have a
significant impact on the banking industry. For example, Congress recently
enacted the GLB Act. Several regulatory


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<PAGE>

agencies and state legislatures are in the process of responding to changes
required or suggested by the GLB Act. We cannot determine the ultimate effect
that the GLB Act, or the regulations implemented and the legislation enacted as
a result of that act, will have on our operating structure, financial condition
or results of operations.

         Some legislative and regulatory changes may increase our costs of doing
business, assist competitors or otherwise adversely affect our operations. We
are unable to predict the nature or extent of the effects on our business and
earnings that any fiscal or monetary policies, or new federal or state
legislation or regulations, may have in the future.

WE ARE REGULARLY INVOLVED IN LEGAL PROCEEDINGS

         Periodically, and in the ordinary course of business, various claims
and lawsuits are brought by and against us and our subsidiaries, such as claims
to enforce liens, condemnation proceedings on properties in which we hold
security interests, claims involving the making and servicing of real estate
loans and other issues incident to our business.

YEAR 2000 DATA PROCESSING PROBLEMS MAY INTERRUPT OUR BUSINESS AND REDUCE OUR
   PROFITS

         We are heavily reliant on computers for accounting for customer records
and transactions, as well as operating performance. The failure of these
systems, or the computer systems of third parties on which we depend, to be Year
2000 compliant could cause substantial disruption of our business and have a
material adverse financial impact on us.



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