Centrue Financial Corporation Announces 2011 Second Quarter Results
(firmenpresse) - ST. LOUIS, MO -- (Marketwire) -- 08/09/11 -- Centrue Financial Corporation (OTCQB: TRUE)
Second quarter of 2011 net loss was $2.4 million, compared to a $3.5 million net loss for the first quarter of 2011 and a $3.9 million net loss in the second quarter of 2010.
The second quarter 2011 net interest margin equaled 3.13%, representing increases of 4 basis points from 3.09% recorded in the first quarter of 2011 and 34 basis points from 2.79% reported the second quarter of 2010.
Nonperforming loans declined $11.8 million, or 18.5%, from first quarter 2011 and $41.3 million, or 44.3%, from June 30, 2010.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE), parent company of Centrue Bank, reported a second quarter net loss of $2.4 million, or $0.48 per common diluted share, compared to a net loss of $3.5 million, or $0.65 per common diluted share in the first quarter of 2011 and a net loss of $3.9 million, or $0.73 per common diluted share for the second quarter in 2010. For the first half of 2011, the Company reported a net loss of $5.9 million, or $1.14 per common diluted share, as compared to a net loss of $10.2 million, or $1.84 per common diluted share, for the same period in 2010.
"Our results for the period continue the positive trends we saw in the first quarter as our loan provision expense and operating loss decreased," remarked President & CEO Thomas A. Daiber. "We still have more work to do on improving asset quality but we were able to make meaningful progress in reducing our problem loans and assets and are now directing more of our resources to expanding existing customer relationships as well as developing new business. The strengthening of our net interest margin along with continued expense control also contributed to an improvement in this quarter's results."
Total securities equaled $230.3 million at June 30, 2011, representing a decrease of $14.6 million, or 6.0%, from March 31, 2011 and an increase of $0.4 million, or 0.2%, from year-end 2010. The net increase from year-end 2010 was largely related to enhancing the Company's liquidity position through reinvesting dollars from the loan portfolio into security instruments with shorter durations. During the second quarter of 2011, the Company evaluated its security portfolio and recorded a $0.1 million non-cash other-than-temporary impairment charge related to one CDO.
Total loans equaled $660.9 million, representing decreases of $49.6 million, or 7.0%, from March 31, 2011 and $61.0 million, or 8.5%, from year-end 2010. The net decrease from year-end 2010 was related to a combination of normal attrition, pay-downs, loan charge-offs, transfers to 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 $866.0 million, representing decreases of $56.5 million, or 6.1%, from March 31, 2011 and $65.1 million, or 7.0%, from year-end 2010. The net decrease from year-end 2010 was largely related to strategic initiatives to reduce higher costing time deposits and collateralized local public agency deposits.
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 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 3.69% at June 30, 2011, compared to 4.37% at December 31, 2010 and 5.35% at June 30, 2010. 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, 2011.
The provision for loan losses for the second quarter of 2011 was $3.3 million, a decrease from $4.3 million recorded in the first quarter of 2011 and $7.6 million recorded in the second quarter of 2010. The second quarter of 2011 provision level was driven by:
sustained level of nonperforming loans and new credits that migrated to nonperforming status that have required current specific allocation estimates;
elevated charge-offs of previously accrued specific allocations that impact historical loss levels;
elevated past due loans;
weakening guarantor positions due to adverse economic conditions;
continued deteriorating collateral values, reflecting the impact of the adverse economic climate on the Company's borrowers.
Net loan charge-offs for the second quarter of 2011 were $8.0 million, or 1.16% of average loans, compared with $6.7 million, or 0.91% of average loans, for the first quarter of 2011 and $7.0 million, or 0.86% of average loans, for the second quarter of 2010. Loan charge-offs during the second 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 $51.9 million at June 30, 2011, from $63.7 million at March 31, 2011 and $70.0 million at December 31, 2010. The $11.8 million decrease from the first quarter of 2011 to the second quarter of 2011 was mainly due to the charge-off of nonaccrual loans and the transfer of the property securing the credits into OREO. The $51.9 million recorded at June 30, 2011 included $45.5 million in nonaccrual loans and $6.4 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 7.86% at June 30, 2011, compared to 8.97% at March 31, 2011 and 9.70% at December 31, 2010.
The coverage ratio (allowance for loan losses to nonperforming loans) was 46.92% at June 30, 2011, compared to 45.64% at March 31, 2011 and 45.02% at December 31, 2010.
Other real estate owned ("OREO") increased to $35.6 million at June 30, 2011, from $28.6 million at March 31, 2011 and $25.6 million at December 31, 2010. In the second quarter of 2011, management converted collateral securing problem loans to properties ready for disposition in the net amount of $10.5 million. Second quarter additions were offset by $2.4 million in dispositions and $1.1 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 $87.5 million at June 30, 2011, from $92.3 million at March 31, 2011 and $95.6 million at December 31, 2010. The ratio of nonperforming assets to total assets was 8.56% at June 30, 2011, 8.60% at March 31, 2011 and 8.65% at December 31, 2010.
The net interest margin was 3.13% for the second quarter of 2011, representing increases of 4 basis points from 3.09% recorded in the first quarter of 2011 and 34 basis points from 2.79% reported in the second quarter of 2010. The increase in the second quarter 2011 net interest margin, as compared to the same period in 2010, was primarily due to increased utilization of interest rate floors on a majority of variable rate loans and a 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. These factors were partially offset by the cost of retaining surplus liquidity, average loan volume decline, the cost of carrying higher balances of nonaccrual loans and the impact of nonaccrual loan interest reversals.
Noninterest income totaled $2.7 million for the three months ended June 30, 2011, compared to $2.8 million for 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 20.0%. This $0.7 million decrease was primarily due to a decrease of $0.6 million in gains on sale of securities.
Total noninterest expense for the second quarter of 2011 and 2010 was $9.6 million. Excluding OREO valuation adjustments taken in both periods, noninterest expense levels decreased by $0.8 million, or 8.6%. This $0.8 million decline in expenses was spread over various categories, including salaries and employee benefits, net occupancy costs, furniture and equipment, marketing and amortization expense.
As reflected in the following table, both the Company and unit Centrue Bank were considered "adequately-capitalized" under regulatory defined capital ratios as of June 30, 2011 and December 31, 2010:
Total regulatory capital ratios decreased since year-end 2010 as a result of net operating losses for the first six months of 2011.
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
Thomas A. Daiber
President and
Chief Executive Officer
Centrue Financial Corporation
Kurt R. Stevenson
Senior Executive Vice President
and Chief Financial Officer
Centrue Financial Corporation
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Datum: 09.08.2011 - 20:15 Uhr
Sprache: Deutsch
News-ID 44221
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ST. LOUIS, MO
Kategorie:
Commercial & Investment Banking
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