<PAGE>

                                     EXHIBIT
                                    ITEM 99.30

          Financial Statements of Centennial First Financial Services
                 For the years ended December 31, 2000 and 1999

                          INDEPENDENT AUDITORS' REPORT


To the Board of Directors
Centennial First Financial Services
Redlands, California


We have audited the accompanying consolidated statements of condition of
Centennial First Financial Services and subsidiary, Redlands Centennial Bank, as
of December 31, 2000 and 1999, and the related consolidated statements of
earnings, changes in stockholders' equity and cash flows for each of the years
in the three-year period ended December 31, 2000. These consolidated financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Centennial First
Financial Services and subsidiary as of December 31, 2000 and 1999, and the
results of their operations and cash flows for each of the years in the
three-year period ended December 31, 2000 in conformity with generally accepted
accounting principles.

/s/Hutchinson and Bloodgood  LLP
January 25, 2001




                                       29
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CONDITION
                           DECEMBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
                                                                                  2000            1999
                                                                              ------------    ------------
<S>                                                                           <C>             <C>
ASSETS
    Cash and due from banks ...............................................   $  8,339,000    $  5,230,000
    Federal funds sold ....................................................      7,370,000       2,150,000
                                                                              ------------    ------------
                Total cash and cash equivalents ...........................     15,709,000       7,380,000
    Interest-bearing deposits in financial institutions ...................      4,780,000       3,612,000
    Investment securities, available for sale .............................      9,429,000       7,793,000
    Federal Home Loan Bank stock, at cost .................................         52,000         210,000
    Loans, net ............................................................     58,774,000      52,382,000
    Accrued interest receivable ...........................................        485,000         378,000
    Premises and equipment, net ...........................................      2,309,000       1,690,000
    Other assets ..........................................................      2,573,000       2,562,000
                                                                              ------------    ------------

                Total assets ..............................................   $ 94,111,000    $ 76,007,000
                                                                              ============    ============

LIABILITIES
    Deposits:
       Noninterest-bearing ................................................   $ 23,896,000    $ 18,135,000
       Interest-bearing and NOW accounts ..................................     29,284,000      17,881,000
       Savings ............................................................      9,499,000      12,008,000
       Time deposits $100,000 or greater ..................................     13,304,000      10,235,000
       Other time deposits ................................................     10,398,000      10,881,000
                                                                              ------------    ------------
                Total deposits ............................................     86,381,000      69,140,000
    Accrued interest payable ..............................................        292,000         242,000
    Other liabilities .....................................................        568,000         297,000
                                                                              ------------    ------------

                Total liabilities .........................................     87,241,000      69,679,000
                                                                              ------------    ------------

Commitments and Contingencies .............................................           --              --

STOCKHOLDERS' EQUITY
    Common stock, $4 stated value; authorized 10,000,000 shares, issued and
       outstanding 692,269 and 677,028 shares at December 31, 2000
       and 1999, respectively .............................................      2,769,000       2,708,000
    Additional paid-in capital ............................................      2,959,000       2,660,000
    Retained earnings .....................................................      1,184,000       1,165,000
    Accumulated other comprehensive loss ..................................        (42,000)       (205,000)
                                                                              ------------    ------------

                Total stockholders' equity ................................      6,870,000       6,328,000
                                                                              ------------    ------------

                Total liabilities and stockholders' equity ................   $ 94,111,000    $ 76,007,000
                                                                              ============    ============
</TABLE>


The accompanying notes are an integral part of these consolidated statements.




                                       30
<PAGE>

               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                       CONSOLIDATED STATEMENTS OF EARNINGS
                  YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998


<TABLE>
<CAPTION>
                                                                         2000          1999           1998
                                                                      -----------   -----------    -----------
<S>                                                                   <C>           <C>            <C>
Interest income:
    Interest and fees on loans ....................................   $ 6,858,000   $ 5,100,000    $ 3,917,000
    Deposits in financial institutions ............................       219,000       238,000        252,000
    Federal funds sold ............................................       454,000       150,000        340,000
    Investments ...................................................       415,000       488,000        530,000
                                                                      -----------   -----------    -----------

                Total interest income .............................     7,946,000     5,976,000      5,039,000
                                                                      -----------   -----------    -----------

Interest expense:
    Demand and savings deposits ...................................       908,000       626,000        657,000
    Time deposits $100,000 or greater .............................       727,000       452,000        433,000
    Other time deposits ...........................................       650,000       508,000        604,000
    Interest on borrowed funds ....................................        46,000          --             --
                                                                      -----------   -----------    -----------

                Total interest expense ............................     2,331,000     1,586,000      1,694,000
                                                                      -----------   -----------    -----------

                Net interest income ...............................     5,615,000     4,390,000      3,345,000

Provision for loan losses .........................................       630,000       225,000         50,000
                                                                      -----------   -----------    -----------

                Net interest income after provision for loan losses     4,985,000     4,165,000      3,295,000
                                                                      -----------   -----------    -----------

Other income:
    Customer service fees .........................................       800,000       718,000        518,000
    Gain from sale of loans .......................................       277,000       220,000        286,000
    Gain (loss) from sale of investment securities ................        11,000        (2,000)       119,000
    Gain from sale of investment in Bancdata Solutions, Inc. ......       906,000          --             --
    Other income ..................................................        90,000        99,000         54,000
                                                                      -----------   -----------    -----------

                Total other income ................................     2,084,000     1,035,000        977,000
                                                                      -----------   -----------    -----------

Other expenses:
    Salaries and wages ............................................     2,196,000     1,698,000      1,308,000
    Employee benefits .............................................       696,000       468,000        283,000
    Net occupancy expense .........................................       429,000       354,000        315,000
    Other operating expense .......................................     2,369,000     1,632,000      1,546,000
                                                                      -----------   -----------    -----------

                Total other expenses ..............................     5,690,000     4,152,000      3,452,000
                                                                      -----------   -----------    -----------

                Income before provision for income taxes ..........     1,379,000     1,048,000        820,000

Provision for income taxes ........................................       472,000       319,000        193,000
                                                                      -----------   -----------    -----------

                Net income ........................................   $   907,000   $   729,000    $   627,000
                                                                      ===========   ===========    ===========

Basic earnings per share ..........................................   $      1.33   $      1.03    $       .92
                                                                      ===========   ===========    ===========

Diluted earnings per share ........................................   $      1.25   $       .96    $       .84
                                                                      ===========   ===========    ===========
</TABLE>

The accompanying notes are an integral part of these consolidated statements.


                                       31
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                  YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998


<TABLE>
<CAPTION>
                                                                                           CCUMULATED
                                                              ADDITIONAL     RETAINED         OTHER
                                                COMMON         PAID-IN       EARNINGS     COMPREHENSIVE
                                                 STOCK         CAPITAL       (DEFICIT)    INCOME (LOSS)      TOTAL
                                              -----------    -----------    -----------    -----------    -----------
<S>                                           <C>            <C>            <C>            <C>            <C>
BALANCE, DECEMBER 31, 1997 ................   $ 2,595,000    $ 2,584,000    $  (124,000)   $    98,000    $ 5,153,000
                                                                                                          -----------

   Comprehensive income:
      Net income ..........................          --             --          627,000           --          627,000
      Change in net unrealized gain (loss)
         on investment securities available
         for sale, after tax effects ......          --             --             --          (84,000)       (84,000)
                                                                                                          -----------

           Total comprehensive income .....                                                                   543,000
                                                                                                          -----------

   Stock dividend .........................          --             --           (2,000)          --           (2,000)

   Exercise of stock options ..............        75,000         50,000           --             --          125,000
                                              -----------    -----------    -----------    -----------    -----------

BALANCE, DECEMBER 31, 1998 ................     2,670,000      2,634,000        501,000         14,000      5,819,000
                                                                                                          -----------

   Comprehensive income:
      Net income ..........................          --             --          729,000           --          729,000
      Change in net unrealized gain (loss)
         on investment securities available
         for sale, after tax effects ......          --             --             --         (219,000)      (219,000)
                                                                                                          -----------

           Total comprehensive income .....                                                                   510,000
                                                                                                          -----------

   Exercise of stock options, including
      tax benefit .........................        55,000         37,000           --             --           92,000

   Purchase and retirement of
      common stock and stock options ......       (17,000)       (11,000)       (65,000)          --          (93,000)
                                              -----------    -----------    -----------    -----------    -----------

BALANCE, DECEMBER 31, 1999 ................   $ 2,708,000    $ 2,660,000    $ 1,165,000    $  (205,000)   $ 6,328,000
                                              ===========    ===========    ===========    ===========    ===========
</TABLE>


The accompanying notes are an integral part of these consolidated statements.




                                       32
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                  YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998


<TABLE>
<CAPTION>
                                                                                        ACCUMULATED
                                                           ADDITIONAL        RETAINED      OTHER
                                              COMMON        PAID-IN         EARNINGS   COMPREHENSIVE
                                              STOCK         CAPITAL         (DEFICIT)  INCOME (LOSS)      TOTAL
                                           -----------    -----------    -----------    -----------    -----------
<S>                                        <C>            <C>            <C>            <C>            <C>
BALANCE, DECEMBER 31, 1999 .............   $ 2,708,000    $ 2,660,000    $ 1,165,000    $  (205,000)   $ 6,328,000

   Comprehensive income:
      Net income .......................          --             --          907,000           --          907,000
      Change in net unrealized gain on
         investment securities available
         for sale, after tax effects ...          --             --             --          163,000        163,000
                                                                                                       -----------
           Total comprehensive income ..                                                                 1,070,000
                                                                                                       -----------

   Cash and stock dividends ............       135,000        412,000       (618,000)          --          (71,000)

   Exercise of stock options, including
      tax benefit ......................       104,000         90,000           --             --          194,000

   Purchase and retirement of
      common stock .....................      (178,000)      (203,000)      (270,000)          --         (651,000)
                                           -----------    -----------    -----------    -----------    -----------

BALANCE, DECEMBER 31, 2000 .............   $ 2,769,000    $ 2,959,000    $ 1,184,000    $   (42,000)   $ 6,870,000
                                           ===========    ===========    ===========    ===========    ===========
</TABLE>




The accompanying notes are an integral part of these consolidated statements.



                                       33
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998


<TABLE>
<CAPTION>
                                                                    2000            1999            1998
                                                                ------------    ------------    ------------
<S>                                                             <C>             <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income ..............................................   $    907,000    $    729,000    $    627,000
    Adjustments to reconcile net income
       to net cash provided by operating activities:
          Depreciation and amortization .....................        324,000         231,000         193,000
          Provision for loan losses .........................        630,000         225,000          50,000
          Loss on sale and disposal of equipment ............           --              --            19,000
          Loss on sale of other real estate owned ...........          7,000            --            15,000
          Loss (gain) from sale of investments ..............        (11,000)          2,000        (119,000)
          Gain from sale of loans ...........................       (277,000)       (220,000)       (286,000)
          Gain from sale of investment in Bancdata Solutions        (906,000)           --              --
          Amortization of deferred loan fees ................       (392,000)       (193,000)       (161,000)
          Deferred income tax benefit .......................        (98,000)        (30,000)       (113,000)
          Amortization of premiums on investment
             securities available for sale ..................         11,000          35,000          64,000
          Amortization of premiums on investment
             securities held to maturity ....................           --             7,000          13,000
          Increase in cash surrender value of life insurance         (64,000)        (63,000)        (44,000)
          Decrease (increase) in assets:
             Accrued interest receivable ....................       (107,000)        (50,000)        155,000
             Other assets ...................................         96,000          89,000        (308,000)
          Increase (decrease) in liabilities:
             Accrued interest payable .......................         50,000         (42,000)         13,000
             Other liabilities ..............................        271,000         130,000         131,000
                                                                ------------    ------------    ------------

                    Net cash provided by operating activities        441,000         850,000         249,000
                                                                ------------    ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Net decrease (increase) in interest-bearing
       deposits in financial institutions ...................     (1,168,000)        492,000         559,000
    Activity in available-for-sale securities:
       Sales ................................................           --           259,000       4,582,000
       Maturities, prepayments and calls ....................        632,000       1,195,000       2,256,000
       Purchases ............................................     (2,004,000)       (968,000)     (4,167,000)
    Activity in held-to-maturity securities:
       Maturities ...........................................           --           800,000            --
    Purchases of Federal Home Loan Bank stock ...............           --          (210,000)           --
    Proceeds from redemption of Federal Home Loan Bank stock         169,000            --              --
    Net increase in loans ...................................     (6,358,000)    (11,989,000)     (8,434,000)
    Proceeds from sales of other real estate owned ..........         13,000          21,000         214,000
    Proceeds from sale of investment in Bancdata Solutions ..      1,218,000            --              --
    Additions to bank premises and equipment ................       (943,000)       (202,000)       (291,000)
    Proceeds from sale of equipment .........................           --            10,000            --
    Purchases of life insurance, net of redemptions .........       (356,000)        (35,000)     (1,268,000)
                                                                ------------    ------------    ------------

                    Net cash used in investing activities ...     (8,797,000)    (10,627,000)     (6,549,000)
                                                                ------------    ------------    ------------
</TABLE>

The accompanying notes are an integral part of these consolidated statements.



                                       34


<PAGE>

               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998



<TABLE>
<CAPTION>
                                                                               2000            1999            1998
                                                                           ------------    ------------    ------------
<S>                                                                        <C>             <C>             <C>
CASH FLOWS FROM FINANCING ACTIVITIES
    Net increase in demand and savings deposits ........................   $ 14,655,000    $  3,987,000    $  8,194,000
    Net increase in time deposits ......................................      2,586,000       1,828,000       1,475,000
    Cash dividends .....................................................        (67,000)           --              --
    Cash dividends paid in lieu of fractional shares ...................         (4,000)           --            (2,000)
    Payments to acquire common stock and stock options .................       (651,000)        (55,000)           --
    Proceeds from exercise of stock options ............................        166,000          92,000         124,000
                                                                           ------------    ------------    ------------

                    Net cash provided by financing activities ..........     16,685,000       5,852,000       9,791,000
                                                                           ------------    ------------    ------------

                    Net increase (decrease) in cash and cash equivalents      8,329,000      (3,925,000)      3,491,000

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ...........................      7,380,000      11,305,000       7,814,000
                                                                           ------------    ------------    ------------

CASH AND CASH EQUIVALENTS, END OF YEAR .................................   $ 15,709,000    $  7,380,000    $ 11,305,000
                                                                           ============    ============    ============



SUPPLEMENTARY INFORMATION

    Interest paid ......................................................   $  2,282,000    $  1,628,000    $  1,682,000
                                                                           ============    ============    ============

    Income taxes paid ..................................................   $    357,000    $    423,000    $    199,000
                                                                           ============    ============    ============
</TABLE>







The accompanying notes are an integral part of these consolidated statements.




                                       35
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

              Centennial First Financial Services (the "Company") was organized
              in August 1999 to become the holding company for Redlands
              Centennial Bank (the "Bank"), pursuant to a Plan of Reorganization
              and Merger Agreement. As part of the reorganization, all of the
              outstanding shares of the Bank were exchanged for shares of the
              Company on December 23, 1999. The transaction was accounted for at
              historical cost in a manner similar to a pooling of interests.

              Redlands Centennial Bank is a California state chartered bank,
              which provides banking services to individuals and business
              customers in Redlands and surrounding communities, as well as
              Small Business Administration loans to customers in Los Angeles
              and Orange counties.

              During 1999, the Bank formed Redlands Centennial Financial
              Services (RCFS) as a wholly owned subsidiary. RCFS began
              operations during March 2000 and sells investment and insurance
              products to the Bank's customers.

                  BASIS OF PRESENTATION AND CONSOLIDATION

                  The consolidated financial statements include the accounts of
                  Centennial First Financial Services and its wholly-owned
                  subsidiary, Redlands Centennial Bank. The consolidated
                  financial statements of Redlands Centennial Bank include the
                  accounts of the Bank and its wholly owned subsidiary, Redlands
                  Centennial Financial Services. All significant intercompany
                  balances and transactions have been eliminated in
                  consolidation.

                  USE OF ESTIMATES

                  In preparing financial statements in conformity with generally
                  accepted accounting principles, management is required to make
                  estimates and assumptions that affect the reported amounts of
                  assets and liabilities as of the date of the statement of
                  condition and reported amounts of revenues and expenses during
                  the reporting period. Actual results could differ from those
                  estimates. Material estimates that are particularly
                  susceptible to significant change in the near term relate to
                  the determination of the allowance for losses on loans, the
                  valuation of foreclosed real estate and the valuation of
                  deferred tax assets.

                  RECLASSIFICATION

                  Certain amounts have been reclassified in the 1999 and 1998
                  financial statements to conform with the 2000 financial
                  statement presentation.




                                       36
<PAGE>

               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

                  INTEREST-BEARING DEPOSITS IN FINANCIAL INSTITUTIONS

                  Interest-bearing deposits in financial institutions mature
                  within ten years and are carried at fair market value which
                  approximates cost.

                  LOANS

                  Loans that management has the intent and ability to hold for
                  the foreseeable future or until maturity or pay-off, generally
                  are reported at their outstanding unpaid principal balances
                  adjusted for charge-offs, the allowance for loan losses, and
                  any deferred fees or costs on originated loans.

                  Interest on loans is accrued daily as earned, except when
                  serious doubt concerning collectibility arises, at which time
                  such loans are placed on a nonaccrual basis, and all accrued
                  and uncollected interest income is reversed against current
                  period operations. Interest income on nonaccrual loans is
                  recognized only to the extent of interest payments received.

                  Unearned income on installment loans is recognized as income
                  over the term of the loans using a method that approximates
                  the interest method.

                  Loan origination fees, to the extent they represent
                  reimbursement for initial direct costs, are recognized as
                  income at the time of loan closing. The excess of fees over
                  costs, if any, are deferred and credited to income over the
                  term of the loan using a method which approximates the
                  interest method. Amortization of loan origination fees are
                  included in revenues as an element of interest on loans. If a
                  loan is paid in full, any deferred fees not yet amortized are
                  recognized as income.

                  Loans which are deemed impaired by management are loans
                  whereby it is probable that the Bank will be unable to collect
                  the scheduled payments of principal or interest when due
                  according to the contractual terms of the loan agreement.
                  Losses on impaired loans are measured on a loan-by-loan basis
                  by either the present value of expected future cash flows
                  discounted at the loan's effective interest rate, the loan's
                  obtainable market price, or the fair value of the collateral
                  if the loan is collateral dependent. Larger groups of smaller
                  balance homogenous loans are collectively evaluated for
                  impairment. Accordingly, the Bank does not separately identify
                  individual consumer loans for impairment disclosures.



                                       37
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

                  ALLOWANCE FOR LOAN LOSSES

                  The determination of the allowance for loan losses is based on
                  an analysis of the loan portfolio and evaluation of
                  collateral. The allowance reflects an amount which, in
                  management's judgment, is adequate to provide for estimated
                  loan losses. The allowance is based on estimates, and ultimate
                  losses may vary from the current estimates. Management's
                  judgment in determining the adequacy of the allowance for loan
                  losses is based on evaluations of the collectibility of loans,
                  taking into consideration such factors as changes in the
                  nature and volume of the loan portfolio, adequacy of
                  collateral, current economic conditions which may affect the
                  borrower's ability to pay, overall portfolio quality, and
                  review of specific problem loans. Loans are charged against
                  the allowance for loan losses when management believes that
                  the collectibility of the principal is unlikely.

                  LOAN SERVICING

                  Servicing assets are recognized as separate assets when rights
                  are acquired through purchase or through sale of financial
                  assets. Capitalized servicing rights are reported in other
                  assets and are amortized into other income in proportion to,
                  and over the period of, the estimated future net servicing
                  income of the underlying financial assets. Servicing assets
                  are evaluated for impairment based upon the fair value of the
                  rights as compared to amortized cost. Impairment is determined
                  by stratifying rights by predominant characteristics, such as
                  interest rates and terms. Fair value is determined using
                  prices for similar assets with similar characteristics, when
                  available, or based upon discounted cash flows using
                  market-based assumptions. Impairment is recognized through a
                  valuation allowance for an individual stratum, to the extent
                  that fair value is less than the capitalized amount for the
                  stratum.

                  PREMISES, EQUIPMENT AND DEPRECIATION

                  Land is carried at cost. Premises and equipment are stated at
                  cost, less accumulated depreciation. Depreciation is provided
                  for in amounts sufficient to relate the cost of depreciable
                  assets to operations over their estimated service lives on a
                  straight-line basis, which range from three to thirty-nine
                  years.


                                       38
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

                  FORECLOSED REAL ESTATE

                  Foreclosed real estate is held for sale and carried at the
                  lower of cost or fair values less estimated costs to sell and
                  an allowance for losses. Troubled loans are transferred to
                  foreclosed real estate upon completion of formal foreclosure
                  proceedings.

                  Costs relating to development and improvement of foreclosed
                  real estate are capitalized, whereas costs relating to holding
                  property are expensed. The portion of interest costs relating
                  to development of real estate is capitalized.

                  Valuations are periodically performed by management, and an
                  allowance for losses is established through a charge to
                  operations if the carrying value of a property exceeds its
                  fair value, less estimated costs to sell.

                  TRANSFERS OF FINANCIAL ASSETS

                  Transfers of financial assets are accounted for as sales, when
                  control over the assets has been surrendered. Control over
                  transferred assets is deemed to be surrendered when: (1) the
                  assets have been isolated from the Company, (2) the transferee
                  obtains the right (free of conditions that constrain it from
                  taking advantage of that right) to pledge or exchange the
                  transferred assets, and (3) the Company does not maintain
                  effective control over the transferred assets through an
                  agreement to repurchase them before their maturity.

                  INCOME TAXES

                  Deferred income taxes are recognized for estimated future tax
                  effects attributable to temporary differences between income
                  tax and financial reporting purposes and carry forwards.
                  Valuation allowances are established when necessary to reduce
                  the deferred tax asset to the amount expected to be realized.
                  Deferred tax assets and liabilities are reflected at currently
                  enacted income tax rates applicable to the period in which the
                  deferred tax assets or liabilities are expected to be realized
                  or settled. As changes in tax laws or rates are enacted,
                  deferred tax assets and liabilities are adjusted accordingly
                  through the provision for income taxes.



                                       39
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

                  INVESTMENT SECURITIES

                  Debt securities that management has the positive intent and
                  ability to hold to maturity are classified as "held to
                  maturity" and recorded at cost. Securities not classified as
                  held to maturity or trading, including equity securities with
                  readily determinable fair values, are classified as "available
                  for sale" and recorded at fair value, with unrealized gains or
                  losses excluded from earnings and reported in other
                  comprehensive income.

                  Purchase premiums and discounts are recognized in interest
                  income using the interest method over the terms of the
                  securities. Declines in the fair value of held-to-maturity and
                  available-for-sale securities below their cost that are deemed
                  to be other than temporary are reflected in earnings as
                  realized losses. Gains and losses on the sale of securities
                  are recorded on the trade date and are determined using the
                  specific identification method.

                  STOCK COMPENSATION PLANS

                  Statement of Financial Accounting Standards ("SFAS") No. 123,
                  "Accounting for Stock-Based Compensation," encourages all
                  entities to adopt a fair value based method of accounting for
                  employee stock compensation plans, whereby compensation cost
                  is measured at the grant date based on the value of the award
                  and is recognized over the service period, which is usually
                  the vesting period. However, it also allows an entity to
                  continue to measure compensation cost for those plans using
                  the intrinsic value based method of accounting prescribed by
                  Accounting Principles Board Opinion No. 25, "Accounting for
                  Stock Issued to Employees," whereby compensation cost is the
                  excess, if any, of the quoted market price of the stock at the
                  grant date over the amount an employee or a director must pay
                  to acquire the stock. Stock options issued under the Bank's
                  stock option plan have no intrinsic value at the grant date,
                  and under Opinion No. 25 no compensation cost is recognized
                  for them. Under the Bank's stock option plan, compensation
                  cost is recognized to the extent that the quoted market price
                  of the stock on the date of grant exceeds the amount that the
                  employee is required to pay. The Bank has elected to continue
                  with the accounting methodology in Opinion No. 25 and, as a
                  result, must make pro forma disclosures of net income and
                  earnings per share and other disclosures, as if the fair value
                  based method of accounting had been applied. The pro forma
                  disclosures include the effects of all awards granted on or
                  after January 1, 1995 (see Note 7).



                                       40
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

                  EARNINGS PER SHARE

                  Basic earnings per share represents income available to common
                  stockholders divided by the weighted-average number of common
                  shares outstanding during the period. Diluted earnings per
                  share reflects additional common shares that would have been
                  outstanding if dilutive potential common shares had been
                  issued, as well as any adjustment to income that would result
                  from the assumed issuance. Potential common shares that may be
                  issued by the Company relate solely to outstanding stock
                  options and are determined using the treasury stock method.

                  The weighted average number of shares used in the computation
                  of basic earnings per share was 680,356 for 2000, 705,260 for
                  1999 and 684,838 for 1998. The weighted average number of
                  shares used in the computation of diluted earnings per share
                  was 727,194 for 2000, 758,765 for 1999 and 745,605 for 1998.

                  STATEMENT OF CASH FLOWS

                  For the purposes of reporting cash flows, cash and cash
                  equivalents include cash on hand, amounts due from banks, and
                  federal funds sold.

                  COMPREHENSIVE INCOME

                  Accounting principles generally require that recognized
                  revenue, expenses, gains and losses be included in net income.
                  Although certain changes in assets and liabilities, such as
                  unrealized gains and losses on available-for-sale securities,
                  are reported as a separate component of the equity section of
                  the balance sheet, such items, along with net income, are
                  components of comprehensive income.

                  The components of other comprehensive income are as follows:


<TABLE>
<CAPTION>
                                            2000         1999         1998
                                          ---------    ---------    ---------
<S>                                       <C>          <C>          <C>
Unrealized holding gains (losses) on
   available-for-sale securities ......   $ 282,000    $(367,000)   $ (21,000)
Reclassification adjustment for (gains)
   losses realized in income ..........     (11,000)       2,000     (119,000)
                                          ---------    ---------    ---------

Net unrealized gains (losses) .........     271,000     (365,000)    (140,000)
Tax effect ............................    (108,000)     146,000       56,000
                                          ---------    ---------    ---------

Net-of-tax amount .....................   $ 163,000    $(219,000)   $ (84,000)
                                          =========    =========    =========

</TABLE>




                                       41
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

                  RECENT ACCOUNTING PRONOUNCEMENTS

                  In September 2000, the Financial Accounting Standards Board
                  issued SFAS No. 140, "Accounting for Transfers and Servicing
                  of Financial Assets and Extinguishments of Liabilities," which
                  replaces SFAS No. 125. The guidance in SFAS No. 140, while not
                  changing most of the guidance originally issued in SFAS No.
                  125, revises the standards for accounting for securitizations
                  and other transfers of financial assets and collateral and
                  requires certain additional disclosures related to transferred
                  assets. The provisions of SFAS No. 140 are effective for
                  transactions occurring after March 31, 2001. Management is
                  currently evaluating the impact of adopting this Statement on
                  the consolidated financial statements, but does not anticipate
                  that it will have a material impact.

                  In June 1998, the Financial Accounting Standards Board issued
                  SFAS No. 133, "Accounting for Derivative Instruments and
                  Hedging Activities," which, as amended by SFAS No. 137 and
                  138, is effective for fiscal years beginning after June 15,
                  2000. This Statement establishes accounting and reporting
                  standards for derivative instruments and hedging activities,
                  including certain derivative instruments embedded in other
                  contracts, and requires that an entity recognize all
                  derivatives as assets or liabilities in the balance sheet and
                  measure them at fair value. If certain conditions are met, an
                  entity may elect to designate a derivative as follows: (a) a
                  hedge of the exposure to changes in the fair value of a
                  recognized asset or liability or an unrecognized firm
                  commitment, (b) a hedge of the exposure to variable cash flows
                  of a forecasted transaction, or (c) a hedge of the foreign
                  currency exposure of an unrecognized firm commitment, an
                  available-for-sale security, a foreign currency denominated
                  forecasted transaction, or a net investment in a foreign
                  operation. The Statement generally provides for matching the
                  timing of the recognition of the gain or loss on derivatives
                  designated as hedging instruments with the recognition of the
                  changes in the fair value of the item being hedged. Depending
                  on the type of hedge, such recognition will be in either net
                  income or other comprehensive income. For a derivative not
                  designated as a hedging instrument, changes in fair value will
                  be recognized in net income in the period of change.
                  Management does not expect that the adoption of these
                  Statements will have a material impact on the Company's
                  consolidated financial statements.




                                       42
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 2.       INVESTMENT SECURITIES

              The following is a comparison of amortized cost and fair value
              of investment securities at December 31, 2000 and 1999:

<TABLE>
<CAPTION>
                                                                                       2000
                                                        ------------------------------------------------------------------
                                                            AMORTIZED        UNREALIZED      UNREALIZED           FAIR
                                                              COST              GAINS          LOSSES             VALUE
                                                        ---------------     -----------   -------------     --------------
<S>                                                     <C>                 <C>           <C>               <C>
               Available for sale:
                  Mortgage-backed securities.....       $     5,072,000     $        --   $      28,000     $    5,044,000
                  Obligations of States and
                     Local Governments...........             4,027,000              --          43,000          3,984,000
                  U.S. Treasury Obligations......               402,000              --           1,000            401,000
                                                        ---------------     -----------   -------------     --------------
                                                        $     9,501,000     $        --   $      72,000     $    9,429,000
                                                        ===============     ===========   =============     ==============
</TABLE>

<TABLE>
<CAPTION>
                                                                                       1999
                                                        ------------------------------------------------------------------
                                                            AMORTIZED        UNREALIZED      UNREALIZED           FAIR
                                                              COST              GAINS          LOSSES             VALUE
                                                        ---------------     -----------   -------------     --------------
<S>                                                     <C>                 <C>           <C>               <C>
               Available for sale:
                  Mortgage-backed securities....        $     3,722,000     $        --   $      81,000     $    3,641,000
                  Obligations of States and
                     Local Governments..........              4,011,000              --         258,000          3,753,000
                  U.S. Treasury Obligations.....                405,000              --           6,000            399,000
                                                        ---------------     -----------   -------------     --------------
                                                        $     8,138,000     $        --   $     345,000     $    7,793,000
                                                        ===============     ===========   =============     ==============
</TABLE>

              The amortized cost and fair value of investment securities
              available for sale at December 31, 2000, by contractual maturity,
              are shown below. Expected maturities for mortgage-backed
              securities may differ from contractual maturities because
              borrowers may have the right to call or retire obligations with or
              without call or prepayment penalties.


<TABLE>
<CAPTION>
                                                AMORTIZED      FAIR
                                                  COST        VALUE
                                               ----------   ----------
                  <S>                          <C>          <C>
                  Due within one year.....     $  402,000   $  401,000
                  Due after one year......        901,000      895,000
                  Due after five years....      3,100,000    3,063,000
                  Due after ten years.....         26,000       26,000
                                               ----------   ----------
                                                4,429,000    4,385,000

                  Mortgage-backed
                      securities .........      5,072,000    5,044,000
                                               ----------   ----------
                                               $9,501,000   $9,429,000
                                               ==========   ==========
</TABLE>





                                       43
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 2.       INVESTMENT SECURITIES (CONTINUED)

              As of December 31, 2000 and 1999, U.S. Treasury Obligations with
              amortized cost of $2,790,000 and $405,000 and fair values of
              $2,777,000 and $399,000, respectively, were pledged as collateral
              as required or permitted by law.


NOTE 3.       LOANS

              The composition of the Bank's loan portfolio at December 31, 2000
              and 1999 is as follows:

<TABLE>
<CAPTION>
                                                                                     2000                   1999
                                                                              ----------------         --------------
<S>                                                                           <C>                          <C>
                      Real estate loans
                         Construction and development...........              $     14,358,000             15,248,000
                         Mortgage loans.........................                    16,272,000             12,533,000
                      Commercial loans..........................                    21,583,000             18,686,000
                      Automobile loans..........................                     3,036,000              2,468,000
                      Indirect loans............................                     1,063,000              1,845,000
                      Equity loans..............................                     1,887,000                876,000
                      Consumer and other loans..................                     1,827,000              1,531,000
                                                                              ----------------         --------------
                              Total loans.......................                    60,026,000             53,187,000

                      Less unearned income......................                      (384,000)              (224,000)
                      Less allowance for loan losses............                      (868,000)              (581,000)
                                                                              ----------------       ----------------
                              Net loans.........................              $     58,774,000       $     52,382,000
                                                                              ================       ================
</TABLE>

              Changes in the allowance for possible loan losses are summarized
as follows:

<TABLE>
<CAPTION>
                                                                            2000              1999             1998
                                                                        -------------    -------------     -------------
<S>                                                                     <C>              <C>               <C>
                  Balance as of January 1......................         $     581,000    $     433,000     $     490,000
                  Provision charged to expense.................               630,000          225,000            50,000
                  Loans charged off............................              (363,000)         (96,000)         (163,000)
                  Recoveries of loans previously charged-off...                20,000           19,000            56,000
                                                                        -------------    -------------     -------------
                  Balance as of December 31....................         $     868,000    $     581,000     $     433,000
                                                                        =============    =============     =============
</TABLE>




                                       44
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 3.       LOANS  (CONTINUED)

              Loans serviced for others are not included in the accompanying
              statements of condition. The unpaid principal balances of loans
              serviced for others were $17,735,000 and $13,235,000 at December
              31, 2000 and 1999, respectively.

              The balance of capitalized loan servicing rights included in
              other assets was $131,000 and $109,000 at December 31, 2000
              and 1999, respectively.

              At December 31, 2000 and 1999, the recorded investment in impaired
              loans totaled $36,000 and $61,000, respectively. No additional
              funds are committed to be advanced in connection with impaired
              loans. Nonaccrual loans totaled $36,000 and $61,000 at December
              31, 2000 and 1999, respectively. The interest income that would
              have been recorded in 2000 and 1999 had the nonaccrual loans
              performed in accordance with the original terms, would have been
              approximately $4,000 and $6,000, respectively.


NOTE 4.       PREMISES, EQUIPMENT AND ACCUMULATED DEPRECIATION

              Premises, equipment and accumulated depreciation at December 31,
              2000 and 1999 consist of the following:

<TABLE>
<CAPTION>
                                                                                        2000                  1999
                                                                                    -------------         -------------
<S>                                                                                 <C>                   <C>
                      Land...................................                       $     132,000         $     132,000
                      Building...............................                           1,105,000             1,091,000
                      Equipment, furniture and fixtures......                           1,681,000             1,186,000
                      Construction in progress...............                             432,000                    --
                                                                                    -------------         -------------
                                                                                        3,350,000             2,409,000
                      Less accumulated depreciation..........                           1,041,000               719,000
                                                                                    -------------         -------------
                                                                                    $   2,309,000         $   1,690,000
                                                                                    =============         =============
</TABLE>

              Total depreciation expense amounted to $324,000, $231,000 and
$193,000 for the years ended December 31, 2000, 1999 and 1998, respectively.




                                       45
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 4.       PREMISES, EQUIPMENT AND ACCUMULATED DEPRECIATION  (CONTINUED)

              During 2000, the Bank began construction of leasehold improvements
              for a branch office to be located in Brea, California and leased
              office space for its construction loan division in Redlands,
              California. The Bank also leases space for a loan office and its
              computer department. Pursuant to the terms of the noncancelable
              operating lease agreements in effect at December 31, 2000, future
              minimum rent commitments under these leases are as follows:

<TABLE>
<S>                                                                                 <C>
                         2001..................................                     $     181,000
                         2002..................................                           169,000
                         2003..................................                           169,000
                         2004..................................                           169,000
                         2005 and beyond.......................                           209,000
                                                                                    -------------
                                                                                    $     897,000
</TABLE>

              Total rent expense for the years ended December 31, 2000, 1999 and
              1998 amounted to $42,000, $20,000 and $13,000, respectively.


NOTE 5.       DEPOSITS

              A summary of time deposits by maturity is as follows:

<TABLE>
<CAPTION>
                                                               DECEMBER 31, 2000                  DECEMBER 31, 1999
                                                       ------------------------------     ------------------------------
                                                                            WEIGHTED                           WEIGHTED
                                                                             AVERAGE                            AVERAGE
                                                             AMOUNT           RATE              AMOUNT           RATE
                                                       ----------------     ---------      ----------------    ---------
<S>                                                    <C>                   <C>        <C>                     <C>
               Within 1 year...................        $     21,310,000       5.73%       $     20,166,000        4.99%
               After 1 year through 3 years....               1,924,000       7.01                 886,000        6.06
               After 3 years through 5 years...                 401,000       7.02                      --          --
               After 5 years...................                  67,000       6.45                  64,000        6.45
                                                       ----------------                   ----------------
                                                       $     23,702,000       5.86%       $     21,116,000        5.04%
                                                       ================                   ================
</TABLE>





                                       46
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 6.       RELATED PARTY TRANSACTIONS

              In the ordinary course of business, the Bank has granted loans to
              certain directors, principal officers, their immediate families,
              and affiliated companies in which they are principal stockholders.
              All loans were made under terms which are consistent with the
              Bank's normal lending policies.

              Aggregate related party loan transactions were as follows:

<TABLE>
<CAPTION>
                                                                                      2000                1999
                                                                                 --------------     ---------------
<S>                                                                              <C>                <C>
                      Balance as of January 1.....................               $    1,674,000     $     1,767,000

                      Repayments, net of borrowings...............                     (929,000)            (93,000)
                                                                                 --------------     ---------------
                      Balance as of December 31...................               $      745,000     $     1,674,000
                                                                                 ==============     ===============
</TABLE>


NOTE 7.           STOCK DIVIDEND AND STOCK OPTIONS

              During 2000 and 1999, the Board of Directors approved a 5% and a
              25% stock dividend, respectively, which resulted in the issuance
              of 33,645 and 132,301 shares, respectively. The 1998 stock
              dividend was accounted for as a stock split.

              The Company has a combined incentive and nonqualified stock option
              plan which authorizes the issuance of stock options to full-time
              salaried employees and directors. The incentive portion of the
              Plan is only available to employees of the Company, while the
              nonqualified portion is also available to directors of the
              Company. The Plan expires in January 2001 and the Company intends
              to renew the Plan.

              The Company's Board of Directors is responsible for administrating
              the Plan. Option prices are determined by the Company's directors
              and must be equal to or greater than the prevailing market price
              of the Company's common stock at the time the option is granted.
              Options are vested at a rate of 20% a year for five years and
              expire ten years from the date the options are granted. The
              maximum number of shares reserved for issuance upon exercise of
              options under the Plan is 182,440 shares of the Company's capital
              stock. Options issued have an exercise price ranging from $5.34 to
              $14.86 per share.




                                       47
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 7.           STOCK DIVIDEND AND STOCK OPTIONS  (CONTINUED)

              The following is a summary of the Company's stock option activity
              for 2000 and 1999:

<TABLE>
<CAPTION>
                                                                        2000                              1999
                                                             --------------------------       --------------------------
                                                                              WEIGHTED                         WEIGHTED
                                                                              AVERAGE                          AVERAGE
                                                                              EXERCISE                         EXERCISE
                                                              SHARES           PRICE            SHARES           PRICE
                                                             ----------      ----------       ----------      ----------
<S>                                                          <C>             <C>              <C>             <C>
               Options granted and outstanding
                   at beginning of year..............           149,862      $  10.55            128,686      $   9.35
               Stock dividend........................             7,237            --                 --            --
               Options granted.......................                --            --             50,250         15.31
               Options canceled......................            (7,816)        13.08             (7,675)        15.31
               Options exercised.....................           (25,977)         6.35            (21,399)         6.78
                                                             ----------                       ----------

               Options granted and outstanding
                   at end of year....................           123,306        $10.65            149,862      $  10.55
                                                             ==========                       ==========

               Options exercisable at year-end.......            69,863         $8.88             87,967      $   8.58
               Weighted average fair value of
                  options granted during year........        $       --                       $     5.29
</TABLE>

               Information pertaining to options outstanding at December 31,
2000 is as follows:

<TABLE>
<CAPTION>
                                                        OPTIONS OUTSTANDING                        OPTIONS EXERCISABLE
                                                              WEIGHTED
                                                               AVERAGE         WEIGHTED                        WEIGHTED
                                                              REMAINING         AVERAGE                         AVERAGE
                     RANGE OF                NUMBER          CONTRACTUAL       EXERCISE          NUMBER        EXERCISE
                  EXERCISE PRICES          OUTSTANDING          LIFE             PRICE         EXERCISABLE       PRICE
               ------------------------   ------------       -----------     ------------      -----------     ---------
<S>                                       <C>                <C>             <C>               <C>             <C>
               $5.34 to $6.41......           26,972           0.6 years     $    5.98             26,819      $    6.00
               $8.72 to $14.86.....           96,334           7.2 years     $   11.95             43,044      $   10.67
                                          ----------                                            ---------

               Options outstanding
                   at end of year..          123,306           5.8 years     $   10.65             69,863      $    8.88
                                          ==========                                            =========
</TABLE>




                                       48
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 7.       STOCK DIVIDEND AND STOCK OPTIONS  (CONTINUED)

              The Company applies APB 25 and related interpretations in
              accounting for the Plan. Accordingly, no compensation cost has
              been recognized for the stock option plan. Had compensation cost
              for the Company's stock option plan been determined based on the
              fair value at the grant date for awards under the Plan consistent
              with the method prescribed by SFAS No. 123, the Company's net
              income and earnings per share would have been reduced to the pro
              forma amounts indicated below:

<TABLE>
<CAPTION>
                                                                                 YEARS ENDED DECEMBER 31,
                                                                        ------------------------------------------------
                                                                              2000             1999              1998
                                                                          ------------     ------------       ----------
<S>                                                                     <C>              <C>               <C>
                  Net income:
                     As reported........................                $     907,000    $     729,000     $     627,000
                     Pro forma..........................                      836,000          604,000           581,000

                  Basic earnings per share:
                     As reported........................                $        1.33    $        1.03     $         .92
                     Pro forma..........................                         1.23              .86               .85

                  Diluted earnings per share:
                     As reported........................                $        1.25    $         .96     $         .84
                     Pro forma..........................                         1.15              .80               .78
</TABLE>

              The fair value of each option granted is estimated on the date of
              grant using the Black-Scholes option-pricing model, with the
              following weighted assumptions used for option grants in 1999 and
              1998; no dividend yield; expected volatility of 16.21% for 1999
              and 17.47% for 1998; risk-free interest rates of 6.4% for 1999 and
              4.6% for 1998 and expected lives of ten years for both years.
              There were no options granted during 2000.


NOTE 8.       INCOME TAXES

              The components of the provision for income taxes at December 31,
              are as follows:

<TABLE>
<CAPTION>
                                                                              2000             1999              1998
                                                                        -------------    -------------     -------------
<S>                                                                     <C>              <C>               <C>
                         Current tax provision:
                             Federal.....................               $     413,000    $     244,000     $     217,000
                             State.......................                     157,000          105,000            90,000
                                                                        -------------    -------------     -------------
                                                                              570,000          349,000           307,000
                                                                        -------------    -------------     -------------
                         Deferred tax provision:
                             Federal.....................                    (101,000)         (27,000)          (77,000)
                             State.......................                       3,000           (3,000)          (37,000)
                                                                        -------------    -------------     -------------
                                                                              (98,000)         (30,000)         (114,000)
                                                                        -------------    -------------     -------------
                                                                        $     472,000    $     319,000     $     193,000
                                                                        =============    =============     =============
</TABLE>



                                       49
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 8.       INCOME TAXES  (CONTINUED)

              The reasons for the differences between the statutory federal
              income tax rate and the effective tax rates are summarized as
              follows:

<TABLE>
<CAPTION>
                                                                               2000             1999             1998
                                                                               ----             ----             ----
<S>                                                                            <C>              <C>              <C>
                         Statutory tax rate............................        34.0%            34.0%            34.0%
                         Increase (decrease) resulting from:
                             State taxes, net of federal tax benefit...         7.2              7.2              7.2
                             Change in valuation allowance.............         3.8              (.9)            (3.0)
                             Municipal bond income.....................        (3.8)            (5.1)            (4.1)
                             Cash surrender value of life insurance....        (2.1)            (2.7)            (2.0)
                             Other, net................................        (4.9)            (2.1)            (8.6)
                                                                               ----             ----             ----
                         Effective tax rates...........................        34.2%            30.4%            23.5%
                                                                               ====             ====             ====
</TABLE>

              The components of the net deferred tax asset at December 31, are
              as follows:

<TABLE>
<CAPTION>
                                                                                   2000              1999
                                                                             -------------      ------------
<S>                                                                          <C>                <C>
                         Deferred tax assets:
                             Federal...................                      $     362,000      $    361,000
                             State.....................                             63,000            69,000
                                                                             -------------      ------------
                                                                                   425,000           430,000
                         Valuation allowance...........                                 --           (13,000)
                                                                             -------------      ------------
                                                                                   425,000           417,000
                                                                             -------------      ------------
                         Deferred tax liability:
                             Federal...................                            (18,000)          (31,000)
                             State.....................                             (4,000)           (5,000)
                                                                             -------------      ------------
                                                                                   (22,000)          (36,000)
                                                                             -------------      ------------
                         Net deferred tax asset........                      $     403,000      $    381,000
                                                                             =============      ============
</TABLE>



                                       50
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 8.       INCOME TAXES  (CONTINUED)

              The tax effects of the temporary differences in income and expense
              items that give rise to deferred taxes at December 31, are as
              follows:

<TABLE>
<CAPTION>
                                                                                   2000              1999
                                                                             -------------      ------------
<S>                                                                          <C>                <C>
                         Deferred tax assets:
                             Allowance for loan losses.................      $     279,000      $    172,000
                             Cash basis of reporting for tax purposes..                 --            11,000
                             Employee benefit plans....................             57,000            39,000
                             Deferred loan fees........................                 --            63,000
                             Net unrealized loss on investment
                                securities available for sale..........             29,000           141,000
                             Organizational costs......................              6,000             5,000
                             State income taxes........................             54,000                --
                                                                             -------------      ------------
                                                                                   425,000           431,000
                         Valuation allowance...........................                 --           (14,000)
                                                                             -------------      ------------
                                                                                   425,000           417,000
                                                                             -------------      ------------
                         Deferred tax liability:
                             Depreciation and amortization.............            (22,000)          (28,000)
                             State income taxes........................                 --            (8,000)
                                                                             -------------      ------------
                                                                                   (22,000)          (36,000)
                                                                             -------------      ------------
                         Net deferred tax asset........................      $     403,000      $    381,000
                                                                             =============      ============
</TABLE>

              A summary of the change in the net deferred tax asset (liability)
              is as follows:

<TABLE>
<CAPTION>
                                                                         YEAR ENDED DECEMBER 31
                                                            ------------------------------------------------
                                                                2000               1999              1998
                                                            ------------     -------------      ------------
<S>                                                         <C>              <C>                <C>
                  Balance at beginning of year............  $    381,000     $     151,000      $    (18,000)
                  Deferred tax benefit....................        98,000            30,000           114,000
                  Deferred tax effects of net
                      unrealized gains or losses
                      on securities available for sale....       (76,000)          200,000            55,000
                                                            ------------     -------------      ------------
                  Balance at end of year..................  $    403,000     $     381,000      $    151,000
                                                            ============     =============      ============
</TABLE>




                                       51
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 9.       COMMITMENTS AND CONTINGENCIES

                  FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

                  In the normal course of business, there are various
                  commitments outstanding, such as commitments to extend credit,
                  which are not reflected in the financial statements. At
                  December 31, 2000 and 1999, such commitments included
                  approximately $55,000 and $234,000, respectively, of standby
                  letters of credit and approximately $26,0740,000 and
                  $27,110,000, respectively, of undisbursed lines of credit and
                  undisbursed loans in process. The Company's exposure to credit
                  loss is represented by the contractual amount of these
                  commitments. The Company uses the same credit policies in
                  making commitments as it does for on-balance-sheet
                  instruments.

                  OTHER CONTINGENCIES

                  Various legal claims also arise from time to time in the
                  normal course of business which, in the opinion of management,
                  will have no material effect on the Company's financial
                  statements.

                  EMPLOYMENT AGREEMENTS AND SPECIAL TERMINATION AGREEMENTS

                  The Bank has entered into employment agreements with several
                  of its key officers. The agreements provide for a specified
                  minimum annual compensation and the continuation of benefits
                  currently received. However, employment under the agreements
                  may be terminated for cause, as defined, without incurring any
                  continuing obligations. The agreements also provide for the
                  establishment of a salary continuation plan to provide
                  benefits to the Bank's president and chief credit officer at
                  the age of retirement (Note 12).

                  All of the employment agreements contain special termination
                  clauses which provide for certain lump sum severance payments
                  within a specified period following a "change in control," as
                  defined in the agreements.


NOTE 10.      EMPLOYEE BENEFIT PLANS

                  401(k) PLAN

                  The Bank has a 401(k) savings and retirement plan that
                  includes substantially all employees. The employees attain
                  vesting in the Bank's contribution over six years. Employees
                  may contribute up to 15% of their compensation, subject to
                  certain limits based on federal tax laws. Under the terms of
                  the Plan, the Bank may make matching contributions at the
                  discretion of the Board of Directors. Contributions to the
                  Plan by the Bank amounted to $43,000, $37,000 and $36,000 for
                  the years ended December 31, 2000, 1999 and 1998,
                  respectively.


                                       52
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 10.      EMPLOYEE BENEFIT PLANS  (CONTINUED)

                  EMPLOYEE STOCK OWNERSHIP PLAN

                  During February 2000, the Bank established an employee stock
                  ownership plan (the Plan) covering substantially all employees
                  of the Bank. An employee becomes eligible to participate in
                  the Plan upon employment with the Bank and becomes fully
                  vested after five years of service. Contributions to the Plan,
                  whether in cash or securities, are made at the discretion of
                  the Bank's Board of Directors in an amount not to exceed the
                  maximum allowable as an income tax deduction. The Bank
                  contributed $100,000 to the Plan for the year ended December
                  31, 2000.


NOTE 11.      CONCENTRATION OF CREDIT RISK

              The Bank services customers in Redlands and surrounding
              communities and has no concentration of deposits with any one
              particular customer or industry. At December 31, 2000 and 1999,
              the Bank had approximately $7,808,000 and $2,425,000,
              respectively, of Federal funds sold, interest-bearing deposits and
              noninterest-bearing deposits with its correspondent banks and one
              other financial institution. At December 31, 2000 and 1999,
              approximately 51% and 57%, respectively of the Bank's loan
              portfolio consists of real estate loans.


NOTE 12. SALARY CONTINUATION PLANS

              The Bank has established salary continuation plans which provide
              for payments to the Bank's president, chief credit officer and its
              directors at the age of retirement. Included in other liabilities
              at December 31, 2000 and 1999, respectively, is $140,000 and
              $95,000 of deferred compensation related to the salary
              continuation plans. The plans are funded through life insurance
              policies that generate a cash surrender value to fund the future
              benefits. Included in other assets at December 31, 2000 and 1999,
              respectively, is $1,831,000 and $1,410,000 of life insurance cash
              surrender value.




                                       53
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 13. STOCKHOLDERS' EQUITY

                  MINIMUM REGULATORY REQUIREMENTS

                  The Company (on a consolidated basis) and the Bank are subject
                  to various regulatory capital requirements administered by the
                  federal banking agencies. Failure to meet minimum capital
                  requirements can initiate certain mandatory and possibly
                  additional discretionary actions by regulators that, if
                  undertaken, could have a direct material effect on the
                  Company's and the Bank's financial statements. Under capital
                  adequacy guidelines and the regulatory framework for prompt
                  corrective action, the Company and the Bank must meet specific
                  capital guidelines that involve quantitative measures of the
                  Bank's assets, liabilities and certain off-balance-sheet items
                  as calculated under regulatory accounting practices. The
                  capital amounts and classifications are also subject to
                  qualitative judgments by the regulators about components, risk
                  weighting, and other factors.

                  Quantitative measures established by the regulations to ensure
                  capital adequacy require the Company and the Bank to maintain
                  minimum amounts and ratios (set forth in the following table)
                  of total and Tier 1 capital (as defined in the regulations) to
                  risk-weighted assets (as defined) and of Tier 1 capital (as
                  defined) to average assets (as defined). Management believes,
                  as of December 31, 2000 and 1999, that the Company and the
                  Bank met all capital adequacy requirements to which it is
                  subject.

                  As of December 31, 2000, the most recent notification from the
                  Federal Deposit Insurance Corporation categorized the Bank as
                  well capitalized under the regulatory framework for prompt
                  corrective action. To be categorized as well capitalized, the
                  Bank must maintain minimum total risk-based, Tier 1 risk-based
                  and Tier 1 leverage ratios as set forth in the following
                  table. There are no conditions or events since the
                  notification that management believes have changed the Bank's
                  category.





                                       54
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 13. STOCKHOLDERS' EQUITY  (CONTINUED)

      The Company's and the Bank's actual capital amounts and ratios as of
      December 31, 2000 and 1999 are as follows:

<TABLE>
<CAPTION>
                                                                                                             MINIMUM
                                                                                                           TO BE WELL
                                                                    MINIMUM                            CAPITALIZED UNDER
                                                                    CAPITAL                            PROMPT CORRECTIVE
                                       ACTUAL                      REQUIREMENT                          ACTION PROVISIONS
                                ---------------------  -----------------------------------   ---------------------------------------
                                 AMOUNT       RATIO       AMOUNT                 RATIO            AMOUNT                RATIO
                                --------     -------      -------               -------          --------              -------
<S>                             <C>          <C>     <C>                    <C>              <C>                    <C>
As of December 31, 2000:

  Total capital to risk-weighted assets:
    Consolidated.......        $7,742,000    11.49%  > or = to $5,390,000   > or = to 8.00%  > or = to $6,738,000   > or = to 10.00%
    Bank...............        $7,555,000    11.22%  > or = to $5,388,000   > or = to 8.00%  > or = to $6,735,000   > or = to 10.00%

  Tier 1 capital to risk-weighted assets:
    Consolidated.......        $6,900,000    10.24%  > or = to $2,695,000   > or = to 4.00%  > or = to $4,043,000   > or = to 6.00%
    Bank...............        $6,713,000     9.97%  > or = to $2,694,000   > or = to 4.00%  > or = to $4,041,000   > or = to 6.00%

  Tier 1 capital to average assets:
    Consolidated.......        $6,900,000     8.12%  > or = to $3,397,000   > or = to 4.00%  > or = to $4,246,000   > or = to 5.00%
    Bank...............        $6,713,000     7.91%  > or = to $3,397,000   > or = to 4.00%  > or = to $4,246,000   > or = to 5.00%

As of December 31, 1999:

  Total capital to risk-weighted assets:
    Consolidated.......        $7,103,000    11.22%  > or = to $5,062,000   > or = to 8.00%  > or = to $6,328,000   > or = to 10.00%
    Bank...............        $7,100,000    11.22%  > or = to $5,062,000   > or = to 8.00%  > or = to $6,328,000   > or = to 10.00%

  Tier 1 capital to risk-weighted assets:
    Consolidated.......        $6,522,000    10.31%  > or = to $2,531,000   > or = to 4.00%  > or = to $3,797,000   > or = to 6.00%
    Bank...............        $6,519,000    10.30%  > or = to $2,532,000   > or = to 4.00%  > or = to $3,797,000   > or = to 6.00%

  Tier 1 capital to average assets:
    Consolidated.......        $6,522,000     8.44%  > or = to $3,090,000   > or = to 4.00%  > or = to $3,862,000   > or = to 5.00%
    Bank...............        $6,519,000     8.44%  > or = to $3,090,000   > or = to 4.00%  > or = to $3,862,000   > or = to 5.00%
</TABLE>





                                       55
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 14.      RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES

         Federal and state banking regulations place certain restrictions on
         dividends paid and loans or advances made by the Bank to the Company.
         The total amount of dividends, which may be paid at any date, is
         generally limited to the retained earnings of the Bank, and loans or
         advances are limited to 10% of the Bank's capital stock and surplus on
         a secured basis.

         In addition, dividends paid by the Bank to the Company would be
         prohibited if the effect thereof would cause the Bank's capital to be
         reduced below applicable minimum capital requirements.


NOTE 15.      CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

              Parent company only information for 2000 and 1999 is presented
              for Centennial First Financial Services since its inception in
              August 1999:

<TABLE>
<CAPTION>
                             STATEMENTS OF CONDITION
                            DECEMBER 31, 2000 AND 1999
                                                                                             2000              1999
                                                                                         -------------     -------------
<S>                                                                                      <C>               <C>
              ASSETS

                 Cash...............................................................     $      81,000     $       3,000
                 Investment in common stock of Redlands Centennial Bank.............         6,683,000         6,325,000
                 Other assets.......................................................           106,000                --
                                                                                         -------------     -------------
                      Total assets..................................................     $   6,870,000     $   6,328,000
                                                                                         =============     =============

              LIABILITIES AND STOCKHOLDERS' EQUITY

                 Liabilities........................................................     $          --     $          --

                 Stockholders' equity:
                 Common stock, $4.00 stated value; authorized 10,000,000 shares,
                    issued and outstanding 692,969 and 677,028 shares at
                    December 31, 2000 and 1999, respectively........................         2,769,000         2,708,000
                 Additional paid-in-capital.........................................         2,959,000         2,660,000
                 Retained earnings..................................................         1,184,000         1,165,000
                 Accumulated other comprehensive loss...............................           (42,000)         (205,000)
                                                                                         -------------     -------------
                      Total stockholders' equity....................................         6,870,000         6,328,000
                                                                                         -------------     -------------
                      Total liabilities and stockholders' equity....................     $   6,870,000     $   6,328,000
                                                                                         =============     =============
</TABLE>




                                       56
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 15.      CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY  (CONTINUED)

                             STATEMENTS OF EARNINGS
       YEAR ENDED DECEMBER 31, 2000 AND THE PERIOD ENDED DECEMBER 31, 1999

<TABLE>
<CAPTION>
                                                              2000          1999
                                                          -----------    -----------
<S>                                                       <C>            <C>
Equity in undistributed net income of
    Redlands Centennial Bank..........................    $   983,000    $    737,000
Expenses..............................................       (127,000)         (8,000)
Tax benefit...........................................         51,000              --
                                                          -----------    ------------
        Net income....................................    $   907,000    $    729,000
                                                          ===========    ============
</TABLE>

                            STATEMENTS OF CASH FLOWS
       YEAR ENDED DECEMBER 31, 2000 AND THE PERIOD ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                              2000          1999
                                                          -----------    -----------
<S>                                                       <C>            <C>
OPERATING ACTIVITIES
   Net income .........................................   $   907,000    $   729,000
   Adjustment to reconcile net income to net cash
      used in operating activities:
        Equity in undistributed income of
           Redlands Centennial Bank ...................      (983,000)      (737,000)
        Increase in other assets ......................       (78,000)          --
                                                          -----------    -----------

              Net cash used in operating activities ...      (154,000)        (8,000)
                                                          -----------    -----------

FINANCING ACTIVITIES
   Cash dividends received from Redlands
      Centennial Bank .................................       787,000         11,000
   Proceeds from notes payable, related party .........          --           10,000
   Payments on notes payable, related party ...........          --          (10,000)
   Cash dividends paid ................................       (67,000)          --
   Cash dividends paid in lieu of fractional shares ...        (4,000)          --
   Payments to acquire common stock and stock options .      (650,000)          --
   Proceeds from exercise of stock options ............       166,000           --
                                                          -----------    -----------

              Net cash provided by financing activities       232,000         11,000
                                                          -----------    -----------

Net increase in cash and cash equivalents .............        78,000          3,000

Cash and cash equivalents, beginning of year ..........         3,000           --
                                                          -----------    -----------

Cash and cash equivalents, end of year ................   $    81,000    $     3,000
                                                          ===========    ===========

NONCASH INVESTING ACTIVITY

Exchange of common stock for investment
in Redlands Centennial Bank ...........................   $      --      $ 5,646,369
                                                          ===========    ===========
</TABLE>




                                       57
<PAGE>


               CENTENNIAL FIRST FINANCIAL SERVICES AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 16.      FEDERAL HOME LOAN BANK LINE OF CREDIT

                  During April 1999, the Bank became a member of the Federal
Home Loan Bank of San Francisco (FHLB). The Bank has an available line of credit
with the FHLB at an interest rate which is determined daily. Borrowings under
the line are limited to eligible collateral. All borrowings from the FHLB are
secured by a blanket lien on qualified collateral. There were no outstanding
advances at December 31, 2000 and 1999.


NOTE 17.      SALE OF INVESTMENT IN BANCDATA SOLUTIONS, INC.

                 During April 2000, the Bank sold its investment in Bancdata
Solutions, Inc., the Bank's data processing center. The gain from the sale
amounted to $906,000. The Bank's investment in Bancdata Solutions, Inc. is
recorded at cost and included in other assets at December 31, 1999.


NOTE 18.      PENDING ACQUISITION OF PALOMAR COMMUNITY BANK

                  On December 1, 2000, the Company signed a definitive agreement
to purchase all of the outstanding common shares of Palomar Community Bank for
$10,500,000. The agreement contains certain financial penalties if the Company
is unable to complete the transaction and is subject to the approval of various
regulatory agencies. The Company expects to complete this transaction during
2001. Included in other assets at December 31, 2000 is $27,000 in prepaid costs
related to this transaction.












                                       58