Centrue Financial Corporation Announces 2014 Results
(firmenpresse) - OTTAWA, IL -- (Marketwired) -- 02/10/15 -- Centrue Financial Corporation (OTCQB: CFCB) (OTC PINK: CFCB)
The Company completed a $35.2 million bulk asset sale during the fourth quarter that negatively impacted earnings by $3.9 million.
Substandard assets declined $48.7 million, or 66.7%, from year-end 2013 and $27.5 million, or 53.1%, from September 30, 2014.
Nonperforming assets declined $34.4 million, or 65.6%, from year-end 2013 and $25.9 million, or 59.0%, from September 30, 2014. Nonperforming assets to total assets declined to 2.20% from 5.93% from year-end 2013 and from 5.14% from September 30, 2014.
Excluding $27.5 million of loans sold in the bulk asset sale, loans increased by $14.9 million, or 2.6%, compared to year-end 2013.
Centrue Bank remains "well-capitalized" at the end of the fourth quarter of 2014 with total risk-based capital of 11.84% and tier 1 leverage capital of 7.61%.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: CFCB) (OTC PINK: CFCB), parent company of Centrue Bank, reported a full year net loss of $4.5 million, or ($1.49) per common diluted share, as compared to net income of $3.7 million, or $0.24 per common diluted share, for the same period in 2013. In the fourth quarter of 2014, the Company reported a net loss of $6.0 million, or ($1.54) per common diluted share, compared to a net loss of $0.3 million or ($0.14) per common diluted share for the fourth quarter of 2013. Fourth quarter and full year 2014, results were impacted by a loss of $3.9 million attributable to a bulk asset sale. 2013 results were impacted by a $4.7 million gain on sale of pooled trust preferred securities. Excluding these items, the Company's core results improved $400,000 from year-end 2013 to year-end 2014.
The Company's President & CEO, Kurt R. Stevenson, stated, "We continue to make meaningful progress in several core areas and are particularly pleased with the material improvement made on key asset quality fronts." Mr. Stevenson continued, "The completion of the bulk asset sale allowed us to significantly reduce our problem assets, while the renewed sales focus resulted in the addition of new quality credits. Though we still have much work ahead of us, our ongoing focus on strengthening top-line revenue generation through sales initiatives will lay the groundwork for future success."
Total securities equaled $141.5 million at December 31, 2014, representing a decrease of $22.4 million, or 13.7%, from December 31, 2013. The net decrease from year-end 2013 was related to several factors which included strategic enhancement to the Company's liquidity position as public funds, brokered deposits and time deposits matured and were not replaced.
Total loans equaled $553.6 million, representing a decrease of $12.6 million, or 2.2%, from December 31, 2013. The net decrease from year-end 2013 was related to the fourth quarter bulk asset sale in which $27.5 million in troubled loans were sold. Excluding these loans sold from the bulk asset sale, total loans outstanding increased by $14.9 million, or 2.6%, compared to year-end 2013. This has been accomplished by reducing nonperforming loans through charge-offs, pay downs, successful workout strategies and the bulk asset sale and replacing them with new loan growth. Economic conditions, while slightly improved in some areas, are still negatively impacting loan demand in many of our markets with very strong competition for new commercial loans.
Total deposits equaled $698.8 million, representing a decrease of $55.5 million, or 7.4%, from December 31, 2013. The net decrease from year-end 2013 was largely related to maturing time deposits not being renewed. Core deposits (checking, savings, NOW, and money market) improved $9.7 million over year-end 2013 and represented 70.5% of total deposits compared to 64.1% from year-end 2013. This increase was recognized largely in checking deposits.
The Bank's overall liquidity position remains strong with funding available for new loan opportunities.
The Bank's key credit quality metrics are as follows:
Nonperforming assets (nonaccrual, 90 days past due, troubled debt restructures and OREO) decreased to $18.0 million at December 31, 2014, a decrease of $34.4 million from December 31, 2013. The ratio of nonperforming assets to total assets was 2.20% at December 31, 2014 compared to 5.93% at December 31, 2013.
Nonperforming loans (nonaccrual, 90 days past due and troubled debt restructures) decreased to $7.7 million at December 31, 2014, from $29.1 million at December 31, 2013. The $21.4 million decrease from the fourth quarter of 2013 was due to a combination of the bulk asset sale, successful loan workout strategies, and charge-offs. The level of nonperforming loans to end of period loans was 1.40% at December 31, 2014, compared to 5.13% at December 31, 2013.
Other real estate owned decreased to $10.3 million at December 31, 2014 from $23.3 million at December 31, 2013.
The allowance for loan losses to total loans was 1.44% at December 31, 2014, compared to 2.06% at year-end 2013.
The coverage ratio (allowance for loan losses to nonperforming loans) was 102.99% at December 31, 2014, compared to 40.06% at December 31, 2013.
The provision for loan losses for the fourth quarter of 2014 was $4.9 million, which included $2.9 million related to the bulk asset sale; an increase from the $1.1 million recorded in the fourth quarter 2013.
Net loan charge-offs for the fourth quarter of 2014 were $9.8 million (which included $6.6 million related to the bulk asset sale) leaving $3.2 million which were organically driven equaling 1.22% of average loans, compared with $1.0 million, or 0.17% of average loans for the fourth quarter of 2013.
The Company's net interest margin was 3.37% for the fourth quarter of 2014, a 3 basis point increase over the 3.34% reported in the fourth quarter of 2013. The Bank's net interest margin was 3.51% for the fourth quarter of 2014, a 4 basis point increase from the fourth quarter of 2013. The Bank's net interest margin for the full year 2014 was 3.46% which was a 12 basis point increase from 2013. The volatility of the net interest margin is being affected by falling yields in the loan portfolio, an increase in the volume of earning assets, decreasing cost of funds and the conversion of nonperforming loans to performing loans.
Noninterest income totaled $3.0 million for the fourth quarter of 2014, compared to $3.1 million for the fourth quarter of 2013. Excluding gains related to the sale of OREO, securities and other non-recurring gains, noninterest income was flat from the fourth quarter of 2013. For the twelve months ended December 31, 2014, noninterest income was $12.8 million compared to $16.7 million for the same period in 2013. When excluding the same items from above, year-to-date noninterest income for 2014 was $0.4 million below the comparable period for 2013. The year-to-date decline can be attributed to a drop in mortgage banking income along with a decline in OREO rental income.
Total noninterest expense for the fourth quarter of 2014 was $10.0 million, which was $1.6 million above the fourth quarter of 2013. Excluding OREO valuation adjustments taken in both periods and other non-recurring items, noninterest expense levels increased by $0.6 million, or 2.5%. This $0.6 million increase in expenses was mainly from occupancy, data processing and loan processing expenses. For the twelve months ended December 31, 2014, noninterest expense was $34.2 million which was $0.7 million higher than the same period in 2013. When excluding the OREO valuation adjustments and other non-recurring items, year-to-date noninterest expense was $0.6 million, or 1.9%, below the comparable amount for 2013 driven by a reduction in salaries and loan-related expenses.
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, 2014 and 2013.
Centrue Financial Corporation is a regional financial services company headquartered in Ottawa, Illinois 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.
Unaudited Selected Quarterly Consolidated Financial Data
Daniel R. Kadolph
Chief Financial Officer
Centrue Financial Corporation
(815) 431-2838
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Datum: 10.02.2015 - 23:00 Uhr
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News-ID 370646
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OTTAWA, IL
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