Centrue Financial Corporation Announces Second Quarter 2010 ResultsST. LOUIS, MO -- (Marketwire - August 12, 2010) - Centrue Financial Corporation (NASDAQ: TRUE)
Highlights
- -- Earnings: Second quarter 2010 net loss of $3.9 million compared to
first quarter 2010 net loss of $6.3 million and second quarter 2009
net loss of $16.2 million.
- -- Risk-Based Capital Ratios: All regulatory capital ratios at the
Company and unit Centrue Bank exceeded regulatory "well-capitalized"
levels as of June 30, 2010. Total Company risk-based capital ratio
and tier 1 leverage ratio was 10.72% and 6.01%, respectively. Total
Centrue Bank risk-based capital ratio and tier 1 leverage ratio was
11.12% and 6.86%, respectively.
- -- Credit Quality: The allowance for loan losses was increased to 5.35%
of total loans; nonperforming assets increased $3.9 million from first
quarter 2010 to 8.91% of total assets; the coverage ratio (allowance
for loan losses to nonperforming loans) remained relatively unchanged
from first quarter 2010; quarterly provision levels exceeded net loan
charge-offs by $0.6 million.
- -- Balance Sheet: Total assets equaled $1.227 billion, representing
decreases of $59.7 million, or 4.6%, from March 31, 2010 and
$85.9 million, or 6.5%, from year-end 2009. Total loans equaled
$792.3 million, representing decreases of $46.4 million, or 5.5%, from
March 31, 2010 and $92.8 million, or 10.5%, from year-end 2009. Total
deposits equaled $993.3 million, representing decreases of
$52.9 million, or 5.1%, from March 31, 2010 and $61.4 million, or
5.8%, from year-end 2009.
- -- Net Interest Margin: The net interest margin was 2.79% for the second
quarter 2010, representing decreases of 9 basis points from 2.88%
recorded in the first quarter 2010 and 48 basis points from 3.27%
reported in the second quarter 2009.
- -- Liquidity: The Bank's liquidity improved as securities grew, while
loans and wholesale funding (brokered deposits and FHLB advances)
decreased since year-end 2009.
- -- Operations: Unit Centrue Bank completed the sale of its Effingham
branch to Effingham, IL based Washington Savings Bank. Washington
Savings Bank assumed approximately $19.5 million of deposit
liabilities related to the branch as well as $5.9 million of branch
loans. The transaction generated a net gain on sale of $1.2 million.
Centrue Financial Corporation (the "Company" or "Centrue") (NASDAQ: TRUE), parent company of Centrue Bank, reported a second quarter net loss of $3.9 million. This compares with a net loss of $6.3 million in the first quarter of 2010 and a net loss of $16.2 million in the second quarter of 2009, which included a goodwill impairment charge of $8.5 million. The net loss per common diluted share in the second quarter 2010 was $0.73, compared to net loss of $1.11 in the first quarter of 2010 and net loss of $2.77 in the second quarter 2009. For the first half of 2010, the Company reported a net loss of $10.2 million, or $1.84 per common diluted share, compared to a net loss of $15.2 million, or $2.66 per common diluted share, for the same period in 2009.
Credit costs continued to weigh heavily on second quarter 2010 earnings, as we recorded $7.6 million in provision for loan losses largely related to asset quality deterioration in the Company's land development, construction and commercial real estate portfolio. Also contributing to the loss was a $1.9 million non-cash credit impairment charge to CDO securities and increased loan remediation costs, including collection expenses on nonperforming loans and expenses associated with maintaining foreclosed real estate. Positively contributing to earnings were gains on sale of the Effingham branch and securities.
"With improving credit quality as our top priority, we continue to focus on aggressively managing and resolving our problem assets," remarked President & CEO Thomas A. Daiber. "We are committed to strengthening core profitability as we provide the best available banking services within our communities as we have for 135 years. We continue to reposition our balance sheet to reduce risk while maintaining appropriate liquidity and well capitalized status by regulatory guidelines. During the quarter, we executed on our strategic decision to sell our Effingham branch in order to focus capital on our core markets. We have implemented an aggressive cost reduction program that includes streamlining operational functions, reducing marketing and other discretionary expenses, freezing officer salaries, eliminating annual bonuses for 2010 and reducing Board of Director fees. Further, we continue to closely monitor our loan portfolio and have increased our allowance for loan losses over the past year to reflect the changes in market and individual borrower conditions. We believe these actions were necessary steps toward minimizing potential losses and returning our company to future profitability. In addition, we believe our capital base and strengthened allowance for loan losses will be important buffers against any prolonged weakness in the economy," concluded Mr. Daiber.
Securities
Total securities equaled $307.8 million, representing increases of $22.4 million, or 7.8%, from March 31, 2010 and $32.3 million, or 11.7%, from year-end 2009. The increase was largely related to surplus liquidity initiatives. At June 30, 2010, the Company's pooled trust preferred collateralized debt obligations ("CDOs") were comprised of seven different pooled securities with an aggregate book value and estimated fair value of $9.9 million and $7.1 million, respectively. Management determined that a non-cash pre-tax charge of $1.9 million ($1.2 million after-tax) was required for other-than-temporary impairment of its trust preferred CDO portfolio.
Loans
Total loans equaled $792.3 million, representing decreases of $46.4 million, or 5.5%, from March 31, 2010 and $92.8 million, or 10.5%, from year-end 2009. This decline was related to a combination of normal attrition, pay-downs, loan charge-offs, transfers to OREO and strategic initiatives to reduce balance sheet risk. Due to economic conditions, we have also experienced a decrease in loan demand as many borrowers continue to reduce their debt.
The Company does not have any material direct sub-prime exposure as we have focused our residential real estate lending activities on providing traditional loan products to relationship borrowers in locally known markets.
Funding and Liquidity
Total deposits equaled $993.3 million, representing decreases of $52.9 million, or 5.1%, from March 31, 2010 and $61.4 million, or 5.8%, from year-end 2009. Excluding $19.5 million in deposits related to the Effingham branch sale, deposits decreased $33.4 million, or 3.2%, from March 31, 2010 and $41.9 million, or 4.0%, from year-end 2009. The net decrease from year-end 2009 was primarily related to declines in NOW accounts and time deposits on strategic initiatives to reduce higher costing in-market time deposits, brokered deposits and collateralized local public agency deposits.
The Bank's overall liquidity position improved during the second quarter 2010, largely due to a reduction in the loan portfolio, net of gross charge-offs and transfers to OREO. Also contributing was an increase in liquid assets, including excess reserves on deposit at the Federal Reserve Bank and unencumbered securities. As our assets decreased through the reduction in the loan portfolio, wholesale funding continued to decline:
- -- Brokered deposits declined to $53.0 million at June 30, 2010 compared
to $63.0 million at March 31, 2010 and $68.5 million at December 31,
2009.
- -- FHLB advances remained unchanged at $76.1 million at June 30, 2010
compared to March 31, 2010 and declined from $86.3 million since
December 31, 2009.
- -- The ratio of wholesale funding (brokered deposits and FHLB advances)
to total bank funding declined to 11.6% at June 30, 2010 compared to
11.9% at March 31, 2010 and 13.0% at December 31, 2009.
Credit Quality and Allowance for Loan Loss
The risk profile of our loan portfolio at June 30, 2010 continues to be high as we, along with many others in the industry, cope with one of the most severe recessions in decades. The asset quality metrics were not outside of expectations and were primarily related to credits we anticipated may have issues during 2010. The key credit quality metrics are as follows:
- -- The Company increased its allowance for loan losses to $42.4 million,
up $1.5 million from December 31, 2009. During the first six months
of 2010, the allowance for loan losses increased 73 basis points to
5.35% of total loans outstanding at June 30, 2010, compared to 4.62%
at December 31, 2009 and 2.82% at June 30, 2009. Management evaluates
the sufficiency of the allowance for loan losses based on the combined
total of specific allocations, historical loss and qualitative
components and believes that the allowance for loan losses represented
probable incurred credit losses inherent in the loan portfolio at
June 30, 2010.
- -- The provision for loan losses for second quarter 2010 was
$7.6 million, down from $9.4 million and $13.1 million for first
quarter 2010 and second quarter 2009, respectively. The second quarter
2010 provision was driven by an increase in nonperforming and action
list loans; increase in charge-offs and losses which impacts
historical loss levels; deteriorating collateral values, reflecting
the impact of the adverse economic climate on the Company's borrowers;
guarantor positions collapsing due to economic conditions; and
increase in the level of past due loans.
- -- Net loan charge-offs for the second quarter 2010 were $7.0 million, or
0.86% of average loans, compared with $8.4 million, or 0.97% of
average loans, for the first quarter 2010 and $2.2 million, or 0.22%
of average loans, for the second quarter 2009. The level of the
provision for loan losses recognized was 108.6% of net loan charge
offs in the second quarter 2010, 111.9% of net loan charge-offs in the
first quarter 2010 and 595.5% in the second quarter 2009. Loan
charge-offs during the second quarter 2010 were largely influenced by
the credit performance of the Company's land development, construction
and commercial real estate portfolio. These charge-offs reflect
management's continuing efforts to align the carrying value of these
assets with the value of underlying collateral based upon more
aggressive disposition strategies and recognizing falling property
values. Because these loans are collateralized by real estate, losses
occur more frequently when property values are declining and borrowers
are losing equity in the underlying collateral. Management believes we
are recognizing losses in our portfolio through provisions and
charge-offs as credit developments warrant.
- -- Nonperforming loans (nonaccrual, 90 days past due and troubled debt
restructures) increased to $93.2 million at June 30, 2010, from $90.2
million at March 31, 2010 and $80.9 million at December 31, 2009.
The $93.2 million recorded at June 30, 2010 included $78.3 million in
nonaccrual loans and $14.9 million in troubled debt restructures. The
level of nonperforming loans to end of period loans was 11.76% as of
June 30, 2010 as compared to 10.75% as of March 31, 2010 and 9.14% as
of December 31, 2009. The nonperforming loan ratio (nonperforming
loans to end of period loans) was negatively impacted to a greater
degree by the decrease in total loans outstanding than the increase
in nonperforming loans.
- -- Approximately 55.0% of total nonaccrual loans at June 30, 2010 were
concentrated in land development and construction credits. The ratio
of construction and land development loans to total loans decreased
to 13.32% at June 30, 2010 from 13.39% at March 31, 2010 and 14.50%
at December 31, 2009.
- -- The coverage ratio (allowance for loan losses to nonperforming loans)
was 45.49% at June 30, 2010, representing decreases from 46.40% at
March 31, 2010 and 50.59% at December 31, 2009. Our coverage ratio
has declined as many of the previously identified workout loans were
placed into nonaccrual status in the second quarter of 2010 and
marked to fair value.
- -- Other real estate owned ("OREO") increased to $16.2 million at
June 30, 2010, from $15.2 million at March 31, 2010 and unchanged from
$16.2 million at December 31, 2009. During the second quarter 2010,
the Company recorded valuation adjustments on OREO properties by
$0.3 million reflective of existing market conditions and more
aggressive disposition strategies.
- -- Nonperforming assets (nonaccrual, 90 days past due, troubled debt
restructures and OREO) increased to $109.3 million at June 30, 2010,
from $105.4 million at March 31, 2010 and $97.1 million at
December 31, 2009. The ratio of nonperforming assets to total assets
was 8.91% at June 30, 2010, 8.19% at March 31, 2010 and 7.40% at
December 31, 2009.
Management continues to diligently monitor the loan portfolio, paying particular attention to borrowers with residential and commercial real estate exposure. The prolonged period of high economic uncertainty that existed throughout 2009 continued into the second quarter of 2010. Should the economic climate deteriorate from current levels, more borrowers may experience repayment difficulty. In turn, the level of nonperforming loans, charge-offs and delinquencies will rise, requiring further increases in the provision for loan losses.
Net Interest Margin
The net interest margin was 2.79% for the second quarter 2010, representing decreases of 9 basis points from 2.88% recorded in the first quarter 2010 and 48 basis points from 3.27% reported in the second quarter 2009. The decrease in the second quarter 2010 net interest margin, as compared to the same period in 2009, was primarily due to the cost of increasing liquidity, average loan volume decline, the cost of carrying higher balances of nonaccrual loans and the impact of nonaccrual loan interest reversals. Additionally, the loan portfolio purchase accounting adjustments that were accreted into interest income related to the Company's 2006 merger expired in the first quarter 2010. Positively impacting the margin was increased utilization of interest rate floors on a majority of variable rate loans and a reduction in the Company's cost of interest-bearing liabilities due to maturity of higher rate time deposits and the decline in market interest rates. Due largely to the protracted economic downturn, the carrying cost of nonaccrual loans and the Company's interest rate sensitivity, the margin will remain under pressure throughout 2010.
Noninterest Income and Expense
Total noninterest income for the second quarter of 2010 was $2.8 million, an increase of $3.7 million, compared to $(0.9) million reported in the same period in 2009. Included in noninterest income for the second quarter of 2010 was a $1.0 million gain on sale of securities, $1.9 million of credit impairment charges on CDO securities, a $1.2 million gain related to the sale of Centrue Bank's Effingham branch, a $0.2 million valuation adjustment on mortgage servicing rights and $0.1 million related to the gain on sale of OREO and other assets. Excluding nonrecurring items from 2010 and 2009, noninterest income decreased $0.8 million or 22.9%. This net decrease largely stems from reduced consumer spending and the impact on overdraft fees and lower revenue generated from the mortgage banking business as volume has declined due to the rate environment.
Total noninterest expense for the second quarter of 2010 was $9.6 million, a decrease of $8.7 million, compared to $18.3 million recorded during the same period in 2009, which included a goodwill impairment charge of $8.5 million. Included in noninterest expense for the second quarter of 2010 was a $0.3 million valuation adjustment to OREO. Excluding the OREO valuation adjustment for the second quarter 2010 and the goodwill impairment charge from the second quarter 2009, noninterest expense levels decreased by $0.5 million, or 5.1%. The lower expense levels were attributed to reductions in various noninterest expense categories, including salaries and employee benefits, FDIC costs and reduced discretionary spending in areas such as marketing, contributions, dues and subscriptions and travel. These lower expense levels were offset by higher loan remediation costs, including collection expenses on nonperforming loans and expenses associated with maintaining foreclosed real estate.
Capital Management
As reflected in the following table, all regulatory ratios to be considered "well-capitalized" at the Company and unit Centrue Bank were exceeded as of June 30, 2010:
Company Bank
---------------- ---------------- Well-
Jun 30, Dec 31, Jun 30, Dec 31, Capitalized
2010 2009 2010 2009 Thresholds
------- ------- ------- ------- -----------
Carrying amounts
($millions):
Total risk-based capital $ 93.6 $ 114.9 $ 96.0 $ 111.2
Tier 1 risk-based capital $ 74.3 $ 91.9 $ 84.9 $ 98.3
Tangible common equity $ 46.0 $ 56.0 $ 106.6 $ 112.6
Capital ratios:
Total risk-based capital 10.72% 11.34% 11.12% 11.13% 10.0%
Tier 1 risk-based capital 8.51% 9.07% 9.82% 9.85% 6.0%
Tier 1 leverage ratio 6.01% 7.10% 6.86% 7.60% 5.0%
Tangible common equity 3.82% 4.35% 8.89% 8.78% NA
Total capital and corresponding capital ratios decreased during the second quarter 2010 due to net operating losses and a $23.8 million deduction to tier 1 capital related to the Company's deferred tax assets. Based upon a regulatory accounting calculation standard that is not directly applicable under generally accepted accounting principles, the $23.8 million deferred tax asset deduction to tier 1 capital represents decreases of 273 basis points in the Company's total risk-based and tier 1 risk-based capital ratios and 193 basis points in the leverage ratio.
About the Company
Centrue Financial Corporation is a regional financial services company headquartered in St. Louis, Missouri and devotes special attention to personal service. The Company serves a market area which extends from the far western and southern suburbs of the Chicago metropolitan area across Central Illinois down to the metropolitan St. Louis area.
Further information about the Company is available at its website at http://www.centrue.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934 as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "estimate," or "project" or similar expressions. The Company's ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and the subsidiaries include, but are not limited to, changes in: interest rates; general economic conditions; legislative/regulatory changes; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality and composition of the loan or securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market areas; the Company's implementation of new technologies; the Company's ability to develop and maintain secure and reliable electronic systems; and accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial information:
- -- Unaudited Consolidated Highlights
- -- Unaudited Consolidated Balance Sheets
- -- Unaudited Consolidated Statements of Income
- -- Unaudited Selected Quarterly Consolidated Financial Data
Centrue Financial Corporation
Unaudited Consolidated Highlights
(In Thousands, Except Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Operating Highlights
Net income (loss) $ (3,925) $ (16,215) $ (10,185) $ (15,150)
Return on average total
assets (1.23)% (4.82)% (1.59)% (2.23)%
Return on average
stockholders' equity (15.10) (45.09) (19.11) (20.97)
Net interest margin 2.79 3.27 2.83 3.35
Efficiency ratio 84.81 74.02 83.03 68.85
Per Share Data
Diluted earnings (loss)
per common share $ (0.73) $ (2.77) $ (1.84) $ (2.66)
Book value per common
share $ 11.77 $ 16.25 $ 11.77 $ 16.25
Tangible book value per
common share $ 8.01 $ 12.25 $ 8.01 $ 12.25
Diluted weighted average
Common shares outstanding 6,043,176 6,028,491 6,043,176 6,028,097
Period end common shares
outstanding 6,043,176 6,043,176 6,043,176 6,043,176
Stock Performance Data
Market price:
Quarter end $ 2.00 $ 4.43 $ 2.00 $ 4.43
High $ 3.49 $ 6.89 $ 4.18 $ 6.95
Low $ 1.89 $ 4.07 $ 1.89 $ 2.76
Period end price to book
value 16.99% 27.26% 16.99% 27.26%
Period end price to
tangible book value 24.97% 36.16% 24.97% 36.16%
Centrue Financial Corporation
Unaudited Consolidated Balance Sheets
(In Thousands, Except Share Data)
June 30, December 31,
2010 2009
----------- -----------
ASSETS
Cash and cash equivalents $ 34,651 $ 56,452
Securities available-for-sale 296,819 264,772
Restricted securities 11,027 10,711
Loans 792,289 885,095
Allowance for loan losses (42,378) (40,909)
----------- -----------
Net loans 749,911 844,186
Bank-owned life insurance 29,877 29,365
Mortgage servicing rights 2,562 2,885
Premises and equipment, net 26,909 30,260
Goodwill 15,880 15,880
Other intangible assets, net 6,891 7,551
Other real estate owned 16,182 16,223
Other assets 36,060 34,399
----------- -----------
Total assets $ 1,226,769 $ 1,312,684
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Non-interest-bearing $ 114,110 $ 119,313
Interest-bearing 879,160 935,376
----------- -----------
Total deposits 993,270 1,054,689
Federal funds purchased and securities sold
under agreements to repurchase 11,499 16,225
Federal Home Loan Bank advances 76,060 86,261
Notes payable 10,711 10,796
Series B mandatory redeemable preferred
stock 268 268
Subordinated debentures 20,620 20,620
Other liabilities 12,394 11,211
----------- -----------
Total liabilities 1,124,822 1,200,070
Stockholders' equity
Series A convertible preferred stock 500 500
Series C preferred stock 30,500 30,190
Common stock 7,454 7,454
Surplus 74,795 74,741
Retained earnings 10,039 21,486
Accumulated other comprehensive income 855 439
----------- -----------
124,143 134,810
Treasury stock, at cost (22,196) (22,196)
----------- -----------
Total stockholders' equity 101,947 112,614
Total liabilities and stockholders'
equity $ 1,226,769 $ 1,312,684
=========== ===========
Centrue Financial Corporation
Unaudited Consolidated Statements of Income
(In Thousands, Except Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Interest income
Loans $ 10,773 $ 13,573 $ 22,021 $ 27,762
Securities
Taxable 1,613 2,151 3,346 4,656
Exempt from federal income
taxes 258 308 536 625
Federal funds sold and other 38 16 65 27
--------- --------- --------- ---------
Total interest income 12,682 16,048 25,968 33,070
Interest expense
Deposits 4,049 5,332 8,420 10,938
Federal funds purchased and
securities sold under
agreements to repurchase 12 33 30 72
Federal Home Loan Bank
advances 579 570 1,160 1,113
Series B mandatory redeemable
preferred stock 4 4 8 8
Subordinated debentures 259 274 513 564
Notes payable 92 119 180 281
--------- --------- --------- ---------
Total interest expense 4,995 6,332 10,311 12,976
Net interest income 7,687 9,716 15,657 20,094
Provision for loan losses 7,550 13,064 16,900 15,299
--------- --------- --------- ---------
Net interest income (loss)
after provision for loan losses 137 (3,348) (1,243) 4,795
Noninterest income
Service charges 1,299 1,599 2,719 3,056
Mortgage banking income 167 811 486 1,509
Bank-owned life insurance 257 259 512 515
Electronic banking services 528 475 1,012 933
Securities gains 1,012 232 1,014 246
Total other-than-temporary
impairment losses (3,921) (10,082) (5,762) (11,290)
Portion of loss recognized in
other comprehensive income
(before taxes) 2,004 5,373 2,238 5,373
--------- --------- --------- ---------
Net impairment on
securities (1,917) (4,709) (3,524) (5,917)
Gain on sale of OREO 1 29 10 36
Gain on sale of other assets 1,268 15 1,470 108
Other income 191 348 429 616
--------- --------- --------- ---------
2,806 (941) 4,128 1,102
Noninterest expenses
Salaries and employee
benefits 3,701 4,322 7,472 8,448
Occupancy, net 943 905 1,731 1,770
Furniture and equipment 519 564 1,043 1,124
Marketing 82 205 189 388
Supplies and printing 98 117 196 236
Telephone 194 297 373 490
Data processing 397 392 779 762
FDIC insurance 853 1,094 1,707 1,339
Loan processing and
collection costs 602 285 1,114 463
Goodwill impairment - 8,451 - 8,451
OREO valuation adjustment 330 - 1,987 -
Amortization of intangible
assets 321 394 660 807
Other expenses 1,570 1,239 2,845 2,864
--------- --------- --------- ---------
9,610 18,265 20,096 27,142
Income (loss) before income
taxes (6,667) (22,554) (17,211) (21,245)
Income tax expense (benefit) (2,742) (6,339) (7,026) (6,095)
--------- --------- --------- ---------
Net income (loss) $ (3,925) $ (16,215) $ (10,185) $ (15,150)
Preferred stock dividends 478 460 951 875
--------- --------- --------- ---------
Net income (loss) for common
stockholders $ (4,403) $ (16,675) $ (11,136) $ (16,025)
========= ========= ========= =========
Basic earnings (loss) per
common share $ (0.73) $ (2.77) $ (1.84) $ (2.66)
========= ========= ========= =========
Diluted earnings (loss) per
common share $ (0.73) $ (2.77) $ (1.84) $ (2.66)
========= ========= ========= =========
Centrue Financial Corporation
Unaudited Selected Quarterly Consolidated Financial Data
(In Thousands, Except Share Data)
Quarters Ended
---------------------------------------------------------
06/30/10 03/31/10 12/31/09 09/30/09 06/30/09
--------- --------- --------- --------- ---------
Statement of
Income
Interest
income $ 12,682 $ 13,286 $ 14,840 $ 15,335 $ 16,048
Interest
expense (4,995) (5,316) (5,659) (5,927) (6,332)
--------- --------- --------- --------- ---------
Net interest
income 7,687 7,970 9,181 9,408 9,716
Provision for
loan losses 7,550 9,350 22,250 14,500 13,064
--------- --------- --------- --------- ---------
Net interest
income (loss)
after
provision for
loan losses 137 (1,380) (13,069) (5,092) (3,348)
Noninterest
income 2,806 1,322 (457) 66 (941)
Noninterest
expense 9,610 10,486 10,525 8,991 18,265
--------- --------- --------- --------- ---------
Income (loss)
before income
taxes (6,667) (10,544) (24,051) (14,017) (22,554)
Income tax
expense
(benefit) (2,742) (4,284) (9,534) (5,605) (6,339)
--------- --------- --------- --------- ---------
Net income
(loss) $ (3,925) $ (6,260) $ (14,517) $ (8,412) $ (16,215)
========= ========= ========= ========= =========
Net income
(loss) for
common
stockholders $ (4,403) $ (6,733) $ (14,985) $ (8,879) $ (16,675)
========= ========= ========= ========= =========
Per Share
Basic earnings
(loss) per
common share $ (0.73) $ (1.11) $ (2.48) $ (1.47) $ (2.77)
Diluted
earnings
(loss) per
common share (0.73) (1.11) (2.48) (1.47) (2.77)
Cash dividends
on common
stock NM NM NM NM 0.01
Dividend
payout ratio
for common
stock NM NM NM NM NM
Book value per
common share $ 11.77 $ 12.46 $ 13.15 $ 15.54 $ 16.25
Tangible book
value per
common share 8.01 8.64 9.27 $ 11.60 $ 12.25
Basic weighted
average
common shares
outstanding 6,043,176 6,043,176 6,043,176 6,043,176 6,027,306
Diluted
weighted
average
common shares
outstanding 6,043,176 6,043,176 6,043,176 6,043,176 6,028,471
Period-end
common shares
outstanding 6,043,176 6,043,176 6,043,176 6,043,176 6,043,176
Balance Sheet
Securities $ 307,846 $ 285,382 $ 275,483 $ 273,085 $ 225,805
Loans 792,289 838,700 885,095 921,340 953,894
Allowance for
loan losses 42,378 41,845 40,909 27,965 26,894
Assets 1,226,769 1,286,532 1,312,684 1,338,474 1,313,529
Deposits 993,270 1,046,233 1,054,689 1,061,543 1,034,116
Stockholders'
equity 101,947 106,087 112,614 127,066 131,367
Earnings
Performance
Return on
average total
assets (1.23)% (1.95)% (4.31)% (2.51)% (4.82)%
Return on
average
stockholders'
equity (15.10) (22.92) (45.81) (25.47) (45.09)
Net interest
margin 2.79 2.88 3.13 3.21 3.27
Efficiency
ratio (1) 84.81 81.27 75.84 71.74 74.02
Asset Quality
Nonperforming
assets to
total end of
period assets 8.91% 8.19% 7.40% 6.77% 6.19%
Nonperforming
loans to
total end of
period loans 11.76 10.75 9.14 8.32 7.10
Net loan
charge-offs
to total
average loans 0.86 0.97 1.03 1.43 0.22
Allowance for
loan losses
to total end
of period
loans 5.35 4.99 4.62 3.04 2.82
Allowance for
loan losses
to
nonperforming
loans 45.49 46.40 50.59 36.48 39.70
Nonperforming
loans $ 93,158 $ 90,184 $ 80,864 $ 76,657 $ 67,746
Nonperforming
assets 109,340 105,414 97,087 90,618 81,328
Net loan
charge-offs 7,016 8,414 9,305 13,429 2,180
Capital
Total risk-based
capital ratio 10.72% 11.01% 11.34% 13.16% 14.29%
Tier 1
risk-based
capital ratio 8.51 8.65 9.07 10.95 12.11
Tier 1
leverage
ratio 6.01 6.44 7.10 8.87 9.93
Tangible
common equity
to tangible
assets 3.82 3.95 4.35 5.34 5.75
(1) Calculated as noninterest expense less amortization of intangibles and
expenses related to other real estate owned divided by the sum of net
interest income before provisions for loan losses and total
noninterest income excluding securities gains and losses and gains on
sale of assets.
NM Not meaningful.
Contact:
Thomas A. Daiber
President and
Chief Executive Officer
Centrue Financial Corporation
tom.daiber@centrue.com
Kurt R. Stevenson
Senior Executive Vice President
and Chief Financial Officer
Centrue Financial Corporation
kurt.stevenson@centrue.com
