Centrue Financial Corporation Announces 2011 Fourth Quarter Earnings
(firmenpresse) - ST. LOUIS, MO -- (Marketwire) -- 03/15/12 -- Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE)
Fourth quarter of 2011 net income was $0.1 million compared to a net loss of $39.2 million for the fourth quarter of 2010 and a net loss of $4.7 million for the third quarter of 2011.
At December 31, 2011 unit Centrue Bank was considered "well-capitalized." Centrue Bank total risk-based capital and Tier 1 leverage capital ratios were 10.28% and 6.06%. The Company was considered "adequately-capitalized" under regulatory defined capital ratios except for the Company's Tier 1 leverage ratio which was 3.74%. The Company total risk-based capital ratio was 9.03%.
Nonperforming assets declined $20.1 million from December 31, 2010 and $5.4 million from September 30, 2011. The allowance to total loans was 3.65%, a decrease from 4.37% at December 31, 2010 and 3.76% at September 30, 2011; the coverage ratio (allowance for loan losses to nonperforming loans) was 46.32%, an increase from 45.02% at December 31, 2010 and a decrease from 48.59% at September 30, 2011.
Total assets equaled $968.0 million, representing decreases of $137.2 million, or 12.4%, from year-end 2010 and $41.0 million, or 4.1%, from September 30, 2011. Total loans equaled $582.4 million, representing decreases of $139.5 million, or 19.3%, from year-end 2010 and $38.1 million, or 6.1%, from September 30, 2011. Total deposits equaled $848.6 million, representing decreases of $82.5 million, or 8.9%, from year-end 2010 and $13.5 million, or 1.6%, from September 30, 2011.
The net interest margin was 3.09% for the fourth quarter 2011, representing an increase of 2 basis points from 3.07% reported in the fourth quarter of 2010 and a decrease of 5 basis points from 3.14% recorded in the third quarter of 2011.
As part of its continued liquidity management efforts, the Company's cash and cash equivalents were $69.7 million at year-end, up from $63.3 million recorded at the previous quarter-end.
Unit Centrue Bank completed the sale of its Champaign branch to Springfield, IL-based Marine Bank on November 18, 2011. Marine Bank assumed approximately $23.5 million of deposit liabilities related to the branch as well as $10.3 million of branch loans. The transaction generated a net gain on sale of $1.3 million.
ST. LOUIS, MO Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE), parent company of Centrue Bank, reported fourth quarter net income of $0.1 million, or a loss of $0.08 per common diluted share, compared to a net loss of $39.2 million, or $6.56 per common diluted share in the fourth quarter of 2010 and a net loss of $4.7 million, or $0.87 per common diluted share in the third quarter of 2011. The results for the fourth quarter 2011 were impacted by a $1.3 million gain on sale of the Champaign branch, security gains of $0.8 million, a $1.5 million charge to the provision for loan losses and a $1.1 million non-cash valuation adjustment on OREO properties.
Credit costs continued to weigh on earnings in the fourth quarter 2011, as we recorded $1.5 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 impacting earnings was a $1.1 million non-cash valuation adjustment to OREO, 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 the sale of the Champaign branch and gains on sale of securities.
For the full year 2011, the Company reported a net loss of $10.6 million, or $2.08 per common diluted share as compared to a net loss of $65.8 million, or $11.20 per common diluted share for the same period in 2010. Results for 2011 were adversely impacted by $11.4 million in provision for loan losses, $6.8 million non-cash valuation adjustments to OREO, and $0.5 million decrease in mortgage banking income.
"This past year has been a period of transition and change for our organization on many fronts," remarked President & CEO Kurt R. Stevenson. "Despite reporting losses for 2011, the modest quarterly earnings mark what we hope to be an important shift in momentum. We ended the year with a continued focus on two critical objectives -- working through our asset quality challenges and increasing revenue. With the addition of several new commercial calling officers, a newly formed treasury management area and the expansion of our mortgage banking team, it is clear that we are back on the offense with our sales efforts as we focus on quality, relationship-oriented growth."
Total securities equaled $238.0 million, representing an increase of $8.1 million, or 3.5%, from year-end 2010 and a decrease of $7.2 million, or 2.9%, from September 30, 2011. During the fourth quarter of 2011, the Company evaluated its security portfolio and determined there was no other-than-temporary impairment loss. The full year impairment charges recorded were $0.5 million.
Total loans equaled $582.4 million, representing decreases of $139.5 million, or 19.3%, from year-end 2010 and $38.1 million, or 6.1%, from September 30, 2011. This decline was related to a combination of normal attrition, pay-downs, loan charge-offs, and transfers to OREO. Also contributing to the decrease was $10.3 million related to the sale of the Champaign branch. Due to economic conditions, we have also experienced a decrease in loan demand as many borrowers continue to reduce their debt.
Total deposits equaled $848.6 million, representing decreases of $82.5 million, or 8.9%, from year-end 2010 and $13.5 million, or 1.6%, from September 30, 2011. The net decrease during the fourth quarter of 2011 was largely concentrated in higher cost time deposits and partially related to a $23.5 million reduction related to the sale of the Champaign branch.
Due to continued uncertainty in the financial markets, we elected to maintain a higher level of liquidity during 2011. The Bank's overall liquidity position improved during the fourth quarter 2011, largely due to a reduction in the loan portfolio, net of gross charge-offs and transfers to OREO.
The key credit quality metrics are as follows:
The allowance for loan losses to total loans was 3.65% at December 31, 2011, compared to 4.37% at December 31, 2010 and 3.76% at September 30, 2011. 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 December 31, 2011.
The provision for loan losses for the fourth quarter of 2011 was $1.5 million, down from $10.5 million recorded in the fourth quarter of 2010 and $2.4 million recorded in the third quarter of 2011. The fourth quarter 2011 provision level was driven by:
Lowering levels of nonperforming loans and less new credits that migrated to nonperforming status;
Declining trend in past due loans;
Some stabilization of collateral values.
Net loan charge-offs for the fourth quarter of 2011 were $3.6 million, or 0.59% of average loans, compared with $22.3 million, or 2.98% of average loans, for the fourth quarter of 2010 and $3.4 million, or 0.54% of average loans, for the third quarter of 2011. Loan charge-offs during the fourth quarter of 2011 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) decreased to $45.8 million at December 31, 2011, from $70.0 million at December 31, 2010 and $48.0 million at September 30, 2011. The $2.2 million decrease from the third quarter of 2011 to the fourth quarter of 2011 was largely due to $3.6 million in charge-offs, net of recoveries. The $45.8 million recorded at December 31, 2011 included $38.7 million in nonaccrual loans and $7.1 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 7.87% at December 31, 2011, compared to 9.70% at December 31, 2010 and 7.73% at September 30, 2011.
Approximately 53.08% of total nonaccrual loans at December 31, 2011 were concentrated in land development and construction credits. The ratio of construction and land development loans to total loans decreased to 7.21% at December 31, 2011 from 9.98% at December 31, 2010 and increased from 7.13% at September 30, 2011.
The coverage ratio (allowance for loan losses to nonperforming loans) was 46.32% at December 31, 2011, compared to 45.02% at December 31, 2010 and 48.59% at September 30, 2011.
Other real estate owned ("OREO") was $29.7 million at December 31, 2011, as compared to $25.6 million at December 31, 2010 and $32.9 million at September 30, 2011. In the fourth quarter of 2011, management converted collateral securing problem loans to properties ready for disposition in the net amount of $3.9 million. Fourth quarter additions were offset by $6.0 million in dispositions that generated a net gain on sale of $0.1 million and $1.1 million in additional valuation adjustments, reflective of existing market conditions and more aggressive disposition strategies. A total of 46 properties were sold during 2011.
Nonperforming assets (nonaccrual, 90 days past due, troubled debt restructures and OREO) decreased to $75.5 million at December 31, 2011, from $95.6 million at December 31, 2010 and $80.9 million at September 30, 2011. The $5.4 million decrease from the third quarter of 2011 to the fourth quarter of 2011 was largely due to $3.6 million in charge-offs, net of recoveries. The ratio of nonperforming assets to total assets was 7.80% at December 31, 2011, 8.65% at December 31, 2010, and 8.02% at September 30, 2011.
The net interest margin was 3.09% for the fourth quarter of 2011, representing an increase of 2 basis points from 3.07% reported in the fourth quarter 2010 and a decrease of 5 basis points from 3.14% recorded in the third quarter of 2011. Centrue Bank's net interest margin was 3.27% for the fourth quarter, representing a 5 basis points increase from 3.22% in the fourth quarter of 2010 and a decrease of 4 basis points from 3.31% in the third quarter of 2011. The decrease in the fourth quarter 2011 net interest margin, as compared to the prior quarter, was primarily due to lower average volume of higher-yielding loans and increased premium amortization due to higher prepayments in the securities portfolio. Positively impacting the margin was a continued 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 likely remain under pressure throughout 2012.
Total noninterest income for the fourth quarter of 2011 was $4.6 million, an increase of $1.3 million, compared to $3.3 million reported in the same period in 2010. Excluding credit impairment charges on CDO securities and gains related to the sale of OREO and other assets from both periods, noninterest income decreased $0.7 million or 22.6%. This $0.7 million decrease was largely due to a decrease in mortgage banking income.
Total noninterest expense for the fourth quarter of 2011 was $9.7 million, a decrease of $16.8 million, compared to $26.5 million recorded during the same period in 2010. Excluding OREO valuation adjustments taken in both periods and the goodwill impairment taken in the fourth quarter of 2010, noninterest expense levels decreased $0.3 million, or 3.4%. This $0.3 million decrease was mainly due to a decrease in our FDIC insurance assessment.
As reflected in the following table, unit Centrue Bank was considered "well-capitalized" and the Company was considered "adequately-capitalized" under regulatory defined capital ratios as of December 31, 2011 except for the Company's Tier 1 leverage ratio which was 3.74%; 4.0% is the threshold for "adequately-capitalized."
The Company's regulatory capital ratios decreased since year-end 2010 largely as a result of net operating losses for the full-year 2011. The Bank's ratios improved during 2011 despite net operating losses as a result of lower total assets.
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 .
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 this press release is the following unaudited financial information:
Unaudited Highlights
Unaudited Consolidated Balance Sheets
Unaudited Consolidated Statements of Income
Unaudited Selected Quarterly Consolidated Financial Data
Kurt R. Stevenson
President and
Chief Executive Officer
Centrue Financial Corporation
Daniel R. Kadolph
Chief Financial Officer
Centrue Financial Corporation
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Datum: 15.03.2012 - 20:15 Uhr
Sprache: Deutsch
News-ID 125409
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Commercial & Investment Banking
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