Centrue Financial Corporation Announces 2012 First Quarter Results
(firmenpresse) - ST. LOUIS, MO -- (Marketwire) -- 05/15/12 -- Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE)
First quarter of 2012 net loss was $0.5 million, compared to a $0.1 million net income for the fourth quarter of 2011 (which included a $1.3 million gain for the sale of the Champaign branch and $0.8 million of security gains) and a $3.5 million net loss in the first quarter of 2011.
The Company's principal subsidiary, Centrue Bank (the "Bank"), posted net income of $0.03 million for the first quarter compared to net income of $0.6 million for the fourth quarter of 2011 and a net loss of $3.0 million for the first quarter of 2011.
Centrue Bank remains "well-capitalized" at the end of the first quarter of 2012.
Nonperforming loans declined $1.9 million, or 4.1%, from December 31, 2011 and $19.8 million, or 31.1%, from March 31, 2011.
The coverage ratio (allowance for loan losses to nonperforming loans) was 46.32%, remaining constant from December 31, 2011 levels.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE), parent company of Centrue Bank, reported a first quarter net loss of $0.5 million, or $0.17 per common diluted share, compared to a net loss of $3.5 million or $0.65 per common diluted share for the same period in 2011. The first quarter 2012 results were adversely impacted by a $1.4 million charge to the provision for loan losses and a $0.1 million non-cash valuation adjustment on OREO properties.
"Despite reporting a loss for the quarter, we are encouraged by some of the positive trends experienced in recent months," remarked President & CEO Kurt R. Stevenson. "We have made no secret of the fact that asset quality challenges have placed a significant strain on our earnings stream. However, decreases in nonperforming loans, action list loans, and loan charge-offs in the first quarter are all positive indicators that the action plans we have in place are yielding results. These improvements, coupled with continued expense discipline, contributed to a smaller quarterly loss. Going forward, we will continue our aggressive efforts to address credit quality issues, the single biggest contributor to our losses, as we work toward returning to profitability as quickly as possible. For 2012, we are concentrating on revenue generation. We've strengthened our sales team with the addition of several new commercial and mortgage loan originators over the past few months and believe we are well-positioned to reignite our sales engine and grow top-line revenue while remaining mindful of expenses."
Total securities equaled $253.8 million at March 31, 2012, representing an increase of $15.8 million, or 6.6%, from December 31, 2011 and an increase of $8.9 million, or 3.6%, from March 31, 2011. The net increase from year-end 2011 was largely related to enhancing the Company's liquidity position through reinvesting funds resulting from pay-downs in the loan portfolio into security instruments due to limited loan demand. During the first quarter of 2012, the Company evaluated its security portfolio and determined there was no other-than-temporary impairment.
Total loans equaled $563.7 million, representing decreases of $18.7 million, or 3.2%, from December 31, 2011 and $146.8 million, or 20.7%, from March 31, 2011. The net decrease from year-end 2011 was related to a combination of normal attrition, pay-downs, loan charge-offs, transfers to other real estate owned ("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.
Total deposits equaled $843.4 million, representing decreases of $5.2 million, or 0.6%, from December 31, 2011 and $79.1 million, or 8.6%, from March 31, 2011. The net decrease from year-end 2011 was largely related to strategic initiatives to reduce higher costing time deposits and collateralized local public agency deposits. The net decrease compared to the first quarter of 2011 was largely concentrated in higher cost time deposits and partially related to a $23.5 million reduction in deposits related to the sale of the Company's Champaign branch.
Due to continued uncertainty in the financial markets, liquidity strategies are conservatively postured in an effort to mitigate adverse pressure on liquidity levels. The Bank's overall liquidity position remained relatively unchanged during the first quarter of 2012 largely due to the redeployment of excess cash inflows into highly liquid investment securities.
The key credit quality metrics are as follows:
The allowance for loan losses to total loans was 3.61% at March 31, 2012, compared to 3.65% at December 31, 2011 and 4.09% at March 31, 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 March 31, 2012.
The provision for loan losses for the first quarter of 2012 was $1.4 million, a decrease from $1.5 million recorded in the fourth quarter of 2011 and $4.3 million recorded in the first quarter of 2011. The lower first quarter of 2012 provision level was driven by:
decreasing levels of nonperforming loans and less new credits that migrated to nonperforming status;
current quarter charge-offs decreased from previous quarters;
declining trend in past due loans;
some stabilization of collateral values.
Net loan charge-offs for the first quarter of 2012 were $2.2 million, or 0.39% of average loans, compared with $3.6 million, or 0.59% of average loans, for the fourth quarter of 2011 and $6.7 million, or 0.91% of average loans, for the first quarter of 2011. Loan charge-offs during the first quarter of 2012 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 $43.9 million at March 31, 2012, from $45.8 million at December 31, 2011 and $63.7 million at March 31, 2011. The $1.9 million decrease from the fourth quarter of 2011 to the first quarter of 2012, was mainly due to the charge-off of nonaccrual loans and the transfer of the property securing the credits into OREO. The $43.9 million recorded at March 31, 2012 included $37.5 million in nonaccrual loans and $6.4 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 7.79% at March 31, 2012, compared to 7.87% at December 31, 2011 and 8.97% at March 31, 2011.
The coverage ratio (allowance for loan losses to nonperforming loans) was 46.32% at March 31, 2012 and December 31, 2011 and 45.64% at March 31, 2011.
Other real estate owned increased to $33.5 million at March 31, 2012, from $29.7 million at December 31, 2011 and $28.6 million at March 31, 2011. In the first quarter of 2012, management converted collateral securing problem loans to properties ready for disposition in the net amount of $5.4 million. First quarter additions were offset by $1.5 million in dispositions and $0.1 million in additional valuation adjustments, reflective of existing market conditions and more aggressive disposition strategies.
Nonperforming assets (nonaccrual, 90 days past due, troubled debt restructures and OREO) increased to $77.4 million at March 31, 2012, from $75.5 million at December 31, 2011 and decreased from $92.3 million at March 31, 2011. The $1.9 million increase from the fourth quarter of 2011 to the first quarter of 2012 was mainly due to the $3.8 million net increase to OREO and new loans transitioning to nonaccrual. The ratio of nonperforming assets to total assets was 8.05% at March 31, 2012, 7.80% at December 31, 2011 and 8.60% at March 31, 2011.
The past due ratio was 8.21% at March 31, 2012 compared to 10.11% at December 31, 2011 and 9.84% at March 31, 2011. Action Listed Loans (classified and criticized loans) declined to $117.5 million from $126.6 million at December 31, 2011 and $168.6 million at March 31, 2011.
The net interest margin was 3.02% for the first quarter of 2012, representing decreases of 7 basis points from 3.09% recorded in both the fourth quarter and first quarter of 2011. The Bank's net interest margin was 3.21% for the first quarter of 2012, representing decreases of 6 basis points from 3.27% recorded in the fourth quarter 2011 and 3 basis points from 3.24% from the first quarter of 2011. The decrease in the first quarter 2012 net interest margin, as compared to the same period in 2011, was primarily due to increased premium amortization due to higher prepayments and lower coupon income with adjustable resets in the securities portfolio, increased rate competiveness on loan renewals and the impact of nonaccrual loan interest reversals. 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.
Noninterest income totaled $3.1 million for the three months ended March 31, 2012, compared to $2.1 million for the same period in 2011. Excluding credit impairment charges on CDO securities and gains related to the sale of OREO and other assets from the periods, noninterest income increased $0.5 million or 20.8%. This $0.5 million increase was spread over several areas, one of the largest being in income from OREO properties.
Total noninterest expense for the first quarter of 2012 was $8.2 million, a decrease of $0.6 million, compared to $8.8 million recorded during the same period in 2011. Excluding OREO valuation adjustments taken in both periods, noninterest expense levels decreased by $0.5 million, or 5.8%. This $0.5 million decline in expenses was spread over various categories including net occupancy costs, furniture and equipment, telephone, data processing, FDIC insurance, amortization expense, loan processing and collection costs. Adversely impacting expense levels were increases in marketing and salary and employee benefits.
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 March 31, 2012 except for the Company's Tier 1 leverage ratio which was 3.78; 4.0% is the threshold for "adequately-capitalized."
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
(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.
Kurt R. Stevenson
President and Chief Executive Officer
Centrue Financial Corporation
Phone: 815-431-2811
Daniel R. Kadolph
Chief Financial Officer
Centrue Financial Corporation
Phone: 815-431-2838
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Datum: 15.05.2012 - 20:15 Uhr
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News-ID 146911
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Commercial & Investment Banking
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