Centrue Financial Corporation Announces 2012 Second Quarter Earnings
(firmenpresse) - ST. LOUIS, MO -- (Marketwire) -- 08/13/12 -- Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE)
Second quarter of 2012 net income was $0.1 million, compared to a $0.5 million net loss for the first quarter of 2012 and a $2.4 million net loss in the second quarter of 2011.
The Company's principal subsidiary, Centrue Bank (the "Bank"), posted net income of $0.5 million for the second quarter 2012 compared to net income of $0.03 million for the first quarter of 2012 and a net loss of $2.0 million for the second quarter of 2011.
Nonperforming assets declined $9.7 million, or 12.5%, from first quarter 2012 and $19.8 million, or 22.6%, from June 30, 2011.
Centrue Bank remains "Well Capitalized" at the end of the second quarter of 2012.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE), parent company of Centrue Bank, reported a first quarter net income of $0.1 million, or ($0.07) per common diluted share, compared to a net loss of $2.4 million or ($0.48) per common diluted share for the second quarter 2011. For the first six months of 2012, the Company reported a net loss of $0.4 million, or ($0.24) per common diluted share, as compared to a net loss of $5.9 million, or ($1.14) per common diluted share, for the same period in 2011.
"Posting earnings at both the Bank and Consolidated level reinforces that the steps we are taking to improve our performance are the right ones," remarked President & CEO Kurt R. Stevenson. "Our trends continue in the right direction with positive decreases in nonperforming assets, action list loans, past dues, and charge-offs. While we continue to prudently manage expenses and strategically lower our cost of funds, we recognize that our revenue generating efforts are the key driver of sustained profitability. We will continue to focus on growing our core business by focusing on the basics of community banking -- making quality loans and servicing our depositors."
Total securities equaled $232.7 million at June 30, 2012, representing a decrease of $21.1 million, or 8.3%, from March 31, 2012 and a decrease of $5.3 million, or 2.2%, from year-end 2011. The net decrease from year-end 2011 was largely related to a strategy to enhance the Company's liquidity position as public funds and brokered deposits matured and were not replaced. On a smaller scale, some of the liquidity was used to fund loan growth.
Total loans equaled $567.9 million, representing an increase of $4.2 million, or 0.7%, from March 31, 2012 and a decrease of $14.5 million, or 2.5%, from year-end 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 continue to experience a decrease in loan demand as many borrowers continue to reduce their debt and competition for new commercial loans is strong.
Total deposits equaled $782.3 million, representing decreases of $61.1 million, or 7.2%, from March 31, 2012 and $66.3 million, or 7.8%, from year-end 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. Since year-end, $19.7 million of brokered deposits having rates of 2.7% matured.
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 second quarter of 2012.
The key credit quality metrics are as follows:
The allowance for loan losses to total loans was 3.21% at June 30, 2012, compared to 3.65% at December 31, 2011 and 3.69% at June 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 June 30, 2012.
The provision for loan losses for the second quarter of 2012 was $1.4 million, representing no change from the $1.4 million recorded in the first quarter of 2012 and a decrease from $3.3 million recorded in the second quarter of 2011. The second quarter of 2012 provision level reduction was driven by:
decreasing levels of nonperforming loans and less new credits that migrated to nonperforming status;
current quarter charge-off levels decreased from prior year;
declining trend in past due loans;
stabilization of collateral values.
Net loan charge-offs for the second quarter of 2012 were $3.5 million, or 0.62% of average loans, compared with $2.2 million, or 0.39% of average loans, for the first quarter of 2012 and $8.0 million, or 1.16% of average loans, for the second quarter of 2011. Loan charge-offs during the second 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 impaired 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 $39.8 million at June 30, 2012, from $43.9 million at March 31, 2012 and $45.8 million at December 31, 2011. The $4.1 million decrease from the first quarter of 2012 to the second 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 $39.8 million recorded at June 30, 2012 included $35.5 million in nonaccrual loans and $4.3 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 7.01% at June 30, 2012, compared to 7.79% at March 31, 2012 and 7.87% at December 31, 2011.
The coverage ratio (allowance for loan losses to nonperforming loans) was 45.79% at June 30, 2012, compared to 46.32% at March 31, 2012 and December 31, 2011.
Other real estate owned decreased to $27.9 million at June 30, 2012, from $33.5 million at March 31, 2012 and $29.7 million at December 31, 2011. In the second quarter of 2012, management converted collateral securing problem loans to properties ready for disposition in the net amount of $0.8 million. Second quarter additions were offset by $5.7 million in dispositions and $0.7 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) decreased to $67.7 million at June 30, 2012, from $77.4 million at March 31, 2012 and $75.5 million at December 31, 2011. The ratio of nonperforming assets to total assets was 7.31% at June 30, 2012, 8.05% at March 31, 2012 and 7.80% at December 31, 2011.
The past due ratio was 7.23% at June 30, 2012 compared to 8.21% at March 31, 2012 and 10.11% at December 31, 2011. Action Listed Loans (classified and criticized loans) declined to $97.6 million from $117.5 million at March 31, 2012 and $126.6 million at December 31, 2011.
The net interest margin was 3.11% for the second quarter of 2012, representing an increase of 9 basis points from 3.02% recorded in the first quarter of 2012 and a decrease of 2 basis points from 3.13% reported in the second quarter of 2011. The Bank's net interest margin was 3.31% for the second quarter of 2012, representing increases of 10 basis points from 3.21% recorded in the first quarter 2012 and 2 basis points from 3.29% from the second quarter of 2011. The increase in the net interest margin compared to first quarter 2012 was primarily due to a decrease in funding costs.
Noninterest income totaled $3.8 million for the three months ended June 30, 2012, compared to $2.7 million for the same period in 2011. Excluding gains related to the sale of OREO, securities and other assets, noninterest income increased $0.4 million or 16.0%. This $0.4 million increase was spread over several areas, with the largest being in income from OREO properties. Mortgage banking income increased by $0.2 million or 50.7%.
Total noninterest expense for the second quarter of 2012 was $8.6 million, a decrease of $1.0 million, compared to $9.6 million recorded during the same period in 2011. Excluding OREO valuation adjustments taken in both periods, noninterest expense levels decreased by $0.6 million, or 7.1%. This $0.6 million decline in expenses was spread over various categories including net occupancy costs, furniture and equipment, telephone, data processing, FDIC insurance and amortization expense. Adversely impacting expense levels were increases in marketing, loan processing, collection costs, 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 June 30, 2012 except for the Company's Tier 1 leverage ratio which was 3.82%.
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
Daniel R. Kadolph
Chief Financial Officer
Centrue Financial Corporation
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Datum: 13.08.2012 - 20:15 Uhr
Sprache: Deutsch
News-ID 174091
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Commercial & Investment Banking
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