Centrue Financial Corporation Announces 2015 First Quarter Results
(firmenpresse) - OTTAWA, IL -- (Marketwired) -- 04/30/15 -- Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: CFCB) (OTC PINK: CFCB)
On March 31, 2015, the Company completed its strategic recapitalization through the issuance of 190 million shares of Centrue common stock with aggregate proceeds of $76.0 million.
Net income for the quarter of $1.9 million.
Increased net loans by $16.2 million or 2.9% from year-end 2014.
First quarter 2015 net interest margin was 3.44%, representing an increase of 7 basis points from 3.37% reported in the fourth quarter of 2014 and a 12 basis point increase from the 3.32% reported in the first quarter of 2014.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: CFCB) (OTC PINK: CFCB), parent company of Centrue Bank, reported first quarter net income of $1.9 million, or $4.15 per common diluted share, compared to $0.6 million or ($0.04) per common diluted share for the first quarter 2014. The recapitalization (recap) that occurred during the quarter had a significant impact on earnings and earnings per share. Included in earnings for the quarter was a $1.8 million gain on debt extinguishment that resulted from the Company settling its senior and subordinated debt as part of the recap process. The Company also redeemed its Series C preferred stock at a 58.2% discount. This one-time transaction was added to net income available to common stockholders and drove the earnings per share to $4.15 for the quarter.
The Company's President & CEO, Kurt R. Stevenson stated, "The year has gotten off to a good start as loans have grown during the quarter, net interest margin remains stable, and asset quality metrics continue to improve. The completion of the capital raise has given us a renewed focus going forward as we look to grow revenue while continuing to become more efficient as an organization."
Total securities equaled $166.3 million at March 31, 2015, representing an increase of $24.9 million, or 17.6%, from December 31, 2014 and an increase of $9.4 million, or 6.0%, from the same quarter in 2014. The net increase from first quarter 2014 was related to putting some of the proceeds from the fourth quarter 2014 bulk asset sale and first quarter recapitalization to work above the amount of normal amortization of the portfolio during the period.
Total loans, excluding loans held for sale, equaled $569.4 million, representing an increase of $16.2 million, or 2.9%, from December 31, 2014 and a decrease of $5.8 million, or 1.0%, from the same period-end in 2014. First quarter of 2014 was prior to the Company's bulk asset sale in the fourth quarter of 2014 where $27.5 million in troubled loans were sold. The net increase from year-end 2014 was related to a combination of new organic loan growth and normal seasonal line draws. Competition for new commercial loan opportunities and loan renewals continues to be strong and pressure loan yields.
Total deposits equaled $712.7 million, representing an increase of $13.8 million, or 2.0%, from December 31, 2014 and a decrease of $59.5 million, or 7.7%, from March 31, 2014. Core deposits increased $19.9 million, or 4.0%, and $6.7 million, or 1.3% from December 31, 2014 and March 31, 2014, respectively. The net increase from year-end 2014 was largely related to initiatives aimed at deepening deposit relationships with loan customers and a general increase in deposits from existing account holders as non-core and brokered time deposits matured and were not replaced.
The Bank's overall liquidity position was further strengthened during the first quarter after the Company injected $36.0 million from the recapitalization into the Bank. Sufficient funding remains available for new loan opportunities.
The key credit quality metrics are as follows:
The allowance for loan losses to total loans was 1.40% at March 31, 2015, compared to 1.44% at December 31, 2014 and 2.15% at March 31, 2014. 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, 2015.
There was no provision for loan losses taken for the first quarter of 2015 compared to $4.9 million recorded in the fourth quarter of 2014 (which included $2.9 million related to the bulk asset sale) and $0.9 million recorded in the first quarter of 2014. The first quarter of 2015 provision level decrease was driven by significantly decreased levels of nonperforming loans and stabilizing collateral values on troubled loans.
Net loan charge-offs for the first quarter of 2015 were a net recovery of an immaterial amount, compared with $9.8 million (which included $6.6 million related to the bulk asset sale), or 1.22% of average loans, for the fourth quarter of 2014 and $0.1 million, or 0.03% of average loans, for the first quarter of 2014. 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 $7.3 million at March 31, 2015, from $7.7 million at December 31, 2014 and $28.3 million at March 31, 2014. The $21.0 million decrease from the first quarter of 2014 to the first quarter of 2015 was due to a combination of the bulk asset sale, successful loan workout strategies, charge-offs and transfers to OREO. The $7.3 million recorded at March 31, 2015 included $7.25 million in nonaccrual loans and $0.05 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 1.29% at March 31, 2015, compared to 1.40% at December 31, 2014 and 4.91% at March 31, 2014.
The coverage ratio (allowance for loan losses to nonperforming loans) was 108.85% at March 31, 2015, compared to 102.99% at December 31, 2014 and 43.81% at March 31, 2014.
Other real estate owned decreased to $10.0 million at March 31, 2015, from $10.3 million at December 31, 2014 and $22.4 million at March 31, 2014. In the first quarter of 2015, management converted collateral securing problem loans to properties ready for disposition in the net amount of $0.03 million. First quarter additions were more than offset by $0.2 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) decreased to $17.3 million at March 31, 2015, from $18.0 million at December 31, 2014 and decreased $33.4 million from the $50.7 million held at March 31, 2014. The ratio of nonperforming assets to total assets was 1.99% at March 31, 2015, 2.20% at December 31, 2014 and 5.67% at March 31, 2014. This improvement brought the Company below the nonperforming assets to total assets average of its peers.
The past due ratio was 1.66% at March 31, 2015 compared to 0.94% at December 31, 2014 and 4.43% at March 31, 2014. Action list loans (classified and criticized loans) equaled $27.2 million at March 31, 2015, a slight increase from $26.2 million at December 31, 2014 and a decrease from $64.6 million at March 31, 2014. The Company continues to work diligently on reducing and resolving troubled loan relationships.
The Company's net interest margin was 3.44% for the first quarter of 2015, representing an increase of 7 basis points from 3.37% recorded in the fourth quarter of 2014 and an increase of 12 basis points from 3.32% reported in the first quarter of 2014. The Bank's net interest margin was 3.58% for the first quarter of 2015, representing an increase of 7 basis points from 3.51% recorded for the fourth quarter 2014 and a 13 basis point increase to the first quarter 2014 net interest margin. The improvement in the net interest margin is being driven by a decreasing cost of funds, the removal of nonperforming loans and the addition of new earning assets.
Noninterest income totaled $4.0 million for the first quarter March 31, 2015, compared to $3.5 million for the same period in 2014. Excluding gains related to debt extinguishment, the sale of OREO, securities and other assets, noninterest income decreased $0.1 million or 4.3%. This $0.1 million decrease was mainly due to a decrease in service charge income.
Noninterest expense for the first quarter of 2015 was $8.2 million, compared to $8.0 million for the same period in 2014. Excluding OREO valuation adjustments taken in both periods, noninterest expense levels increased by $0.2 million, or 2.6%. This $0.2 million increase in expense was largely in the salary and benefits category.
The first quarter of 2015 was the first quarter that the new Basel III capital rules are in effect. Along with these new capital rules came a new capital ratio called the common equity tier I capital ratio. The following table has the regulatory capital ratios as of March 31, 2015 and December 31, 2014.
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: 30.04.2015 - 20:15 Uhr
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