Centrue Financial Corporation Announces 2013 Third Quarter Results
Centrue Financial Corporation Announces 2013 Third Quarter Results
OTTAWA, IL--(Marketwired - Nov 1, 2013) - Centrue Financial Corporation (OTCQB: TRUE) (PINKSHEETS: TRUE)
Highlights
Third quarter of 2013 net loss was $79.9 thousand, compared to a net loss of $3.3 million for the third quarter of 2012.
The Company's principal subsidiary, Centrue Bank (the "Bank"), posted net income of $0.2 million for the third quarter of 2013 compared to a net loss of $3.2 million for the third quarter of 2012.
The Company and Bank's results for the third quarter were impacted by $0.9 million in provision expense and $0.8 million in other real estate owned ("OREO") expenses. Partially offsetting these expense items were gains from security sales and OREO sales.
The Bank's third quarter 2013 net interest margin was stable at 3.34%, a 1 basis point increase from the 3.33% reported in the third quarter of 2012.
Performing loans have increased by $12.9 million compared to year-end 2012. This has been accomplished by reducing nonperforming loans through charge-offs and pay downs and replacing them with new loan growth.
Centrue Bank remains "well-capitalized" at the end of the third quarter of 2013.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE), parent company of Centrue Bank, reported third quarter net loss of $80 thousand, or ($0.10) per common diluted share, compared to a net loss of $3.3 million or ($0.63) per common diluted share for the third quarter 2012. For the first nine months of 2013, the Company reported net income of $4.0 million, or $0.39 per common diluted share, as compared to a net loss of $3.7 million, or ($0.87) per common diluted share, for the same period in 2012.
Securities
Total securities equaled $142.1 million at September 30, 2013, representing a decrease of $59.3 million, or 29.4%, from December 31, 2012 and a decrease of $39.4 million, or 21.7%, from the same quarter in 2012. The net decrease from third quarter 2012 was primarily related to a timing difference in securities sold and the subsequent reinvestment of $30.0 million completed in October 2013.
Loans
Performing loans increased $12.9 million since December 31, 2012. This has been accomplished by reducing nonperforming loans through charge-offs and pay downs and replacing them with new loan growth. Total loans equaled $560.8 million, representing an increase of $1.8 million, or 0.3%, from December 31, 2012 and a decrease of $0.7 million from the third quarter 2012. The net increase from year-end 2012 was related to new loans being booked above the level of normal attrition, pay-downs, loan charge-offs and transfers to OREO. Economic conditions remain relatively unchanged from prior years, with decreased loan demand and very strong competition for new commercial loans.
Funding and Liquidity
Total deposits equaled $754.6 million, representing a decrease of $30.7 million, or 3.9%, from December 31, 2012 and a decrease of $28.1 million, or 3.6%, from September 30, 2012. The net decrease from year-end 2012 was largely related to maturing time deposits not being renewed and public funds being drawn down as school districts run down their funds before property tax revenues replenish their balances. Core deposits were slightly improved over year-end 2012 and were $27.7 million above the same quarter in 2012.
The Bank's overall liquidity position remains strong with funding available for any new loan opportunities.
Credit Quality
The Bank's key credit quality metrics are as follows:
The allowance for loan losses to total loans was 2.06% at September 30, 2013, compared to 3.75% at September 30, 2012. 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 September 30, 2013.
The provision for loan losses for the third quarter of 2013 was $0.9 million, a decrease from the $5.8 million recorded in the third quarter of 2012. The third quarter of 2013 provision level decrease was driven by decreasing levels of nonperforming loans and stabilizing collateral values on troubled loans.
Net loan charge-offs for the third quarter of 2013 were $4.8 million, or 0.85% of average loans, compared with $2.9 million, or 0.52% of average loans, for the third quarter of 2012. Loan charge-offs during the third quarter of 2013 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. 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 $26.5 million at September 30, 2013, from $46.7 million at September 30, 2012. The $20.2 million decrease from the third quarter of 2012 to the third quarter of 2013 was due to a combination of successful loan workout strategies, charge-offs referenced above and transfers to OREO. The $26.5 million recorded at September 30, 2013 includes $19.1 million in nonaccrual loans and $7.4 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 4.72% at September 30, 2013, compared to 6.72% at December 31, 2012 and 8.32% at September 30, 2012.
The coverage ratio (allowance for loan losses to nonperforming loans) was 43.63% at September 30, 2013, compared to 45.08% at September 30, 2012.
Other real estate owned decreased to $24.1 million at September 30, 2013, a decrease from $28.6 million at September 30, 2012. In the third quarter of 2013, management converted collateral securing problem loans to properties ready for disposition in the net amount of $0.2 million. Third quarter additions were more than offset by $1.7 million in dispositions and $0.4 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 $50.5 million at September 30, 2013, a decrease of $24.8 million from the $75.3 million held at September 30, 2012. The ratio of nonperforming assets to total assets was 5.73% at September 30, 2013, 7.40% at December 31, 2012 and 8.33% at September 30, 2012.
The past due ratio was 4.44% at September 30, 2013 compared to 7.40% at September 30, 2012. Action Listed Loans (classified and criticized loans) declined to $75.2 million at September 30, 2013 from $80.8 million at December 31, 2012 and $94.0 million at September 30, 2012.
Net Interest Margin
The Company's net interest margin was 3.21% for the third quarter of 2013, a 1 basis point increase over the 3.20% reported in the third quarter of 2012. The Bank's net interest margin was 3.34% for the third quarter of 2013, a 1 basis point increase to the third quarter 2012 net interest margin. The volatility of the net interest margin is being affected by several factors including: falling yields in both the securities and loan portfolios, an increase in earning assets, decreasing cost of funds and the removal of nonperforming loans out of earning assets. Comparing third quarter periods the yield on funding fell slightly more than the yield on earning assets.
Noninterest Income and Expense
Noninterest income totaled $3.1 million for the third quarter ended September 30, 2013, compared to $3.8 million for the same period in 2012. Excluding gains related to the sale of OREO, securities and other assets, noninterest income for the period was $0.4 million below what it was in the same period a year ago. This $0.4 million decrease was mainly due to decreases in mortgage banking income and revenue on bank-owned life insurance. For the nine months ended September 30, 2013, noninterest income was $13.6 million compared to $10.7 million for the same period in 2012. When excluding the same items from above, year-to-date noninterest income for 2013 was $0.7 million below the comparable period for 2012. The main drivers of this decline have been in the mortgage banking, services charges, income from OREO and bank-owned life insurance categories.
Total noninterest expense for the third quarter of 2013 was $8.3 million, which was $0.2 million below the same period in 2012. Excluding OREO Valuation Adjustments taken in both periods, noninterest expense levels were flat at $7.9 million. For the nine months ended September 30, 2013, noninterest expense was $25.1 million which was $0.2 million below the same period in 2012. When excluding the OREO Valuation Adjustments, year-to-date noninterest expense was $0.2 million above the comparable amount for 2012. Loan processing and collection costs saw the largest decrease from the prior year at $0.3 million, but were offset by higher expenses in several other categories.
Capital Management
As reflected in the following table, Centrue Bank was considered "well-capitalized" and the Company was considered "adequately-capitalized" under regulatory defined capital ratios as of September 30, 2013 except for the Company's Tier 1 leverage ratio which was 3.86%.
Centrue Financial Centrue Bank
Sep 30, 2013 Dec 31, 2012 Sep 30, 2013 Dec 31, 2012
Capital ratios:
Total risk-based capital 8.78 % 8.25 % 11.83 % 10.41 %
Tier 1 risk-based capital 5.50 % 4.65 % 10.57 % 9.14 %
Tier 1 leverage ratio 3.86 % 3.39 % 7.41 % 6.58 %
About the Company
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 http://www.centrue.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
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 Financial Statements and Tables
Unaudited Selected Quarterly Consolidated Financial Data
Centrue Financial Corporation
Unaudited Selected Quarterly Consolidated Financial Data
(In Thousands, Except Per Share Data)
Quarters Ended
9/30/13 6/30/13 3/31/13 12/31/12 9/30/12
Balance Sheet
Assets
Cash and cash equivalents $ 97,982 $ 51,393 $ 80,420 $ 63,271 $ 79,423
Securities 142,149 186,734 204,077 201,369 188,524
Loans 560,774 567,814 551,519 559,014 561,476
Allowance for loan losses (11,540 ) (15,457 ) (16,488 ) (18,948 ) (21,070 )
Other real estate owned 24,092 25,985 25,426 29,305 28,601
Other assets 70,175 70,492 70,044 69,763 67,871
Total assets 883,632 886,961 914,998 903,774 904,825
Liabilities and stockholders' equity
Deposits 754,583 748,507 805,279 785,337 782,597
Non-deposit funding 84,791 92,054 64,892 74,309 77,959
Other liabilities 17,872 17,499 16,749 16,212 15,562
Total liabilities 857,246 858,060 886,920 875,858 876,118
Stockholders' equity 26,386 28,901 28,078 27,916 28,707
Total liabilities and stockholders' equity $ 883,632 $ 886,961 $ 914,998 $ 903,774 $ 904,825
Statement of Income
Interest income $ 7,040 $ 6,891 $ 7,141 $ 7,361 $ 7,726
Interest expense (1,030 ) (1,072 ) (1,155 ) (1,270 ) (1,428 )
Net interest income 6,010 5,819 5,986 6,091 6,298
Provision for loan losses 900 850 600 1,250 5,750
Net interest income (loss) after provision for loan losses 5,110 4,969 5,386 4,841 548
Noninterest income 3,067 7,649 2,878 3,250 3,829
Noninterest expense 8,257 8,610 8,203 8,289 8,484
Income (loss) before income taxes (80 ) 4,008 61 (198 ) (4,107 )
Income tax expense (benefit) - - - (46 ) (788 )
Net income (loss) $ (80 ) $ 4,008 $ 61 $ (152 ) $ (3,319 )
Net income (loss) for common stockholders $ (633 ) $ 3,461 $ (480 ) $ (686 ) $ (3,848 )
Per Share
Basic earnings (loss) per common share $ (0.10 ) $ 0.57 $ (0.08 ) $ (0.11 ) $ (0.63 )
Diluted earnings (loss) per common share (0.10 ) 0.57 (0.08 ) (0.11 ) (0.63 )
Book value per common share $ (1.12 ) $ (0.70 ) $ (0.84 ) $ (0.87 ) $ (0.74 )
Tangible book value per common share (1.71 ) (1.34 ) (1.51 ) (1.58 ) (1.49 )
Basic weighted average common shares outstanding 6,063,441 6,063,441 6,063,441 6,063,441 6,063,441
Diluted weighted average common shares outstanding 6,063,441 6,063,441 6,063,441 6,063,441 6,063,441
Period-end common shares outstanding 6,063,441 6,063,441 6,063,441 6,063,441 6,063,441
Earnings Performance
Return on average total assets (0.04) % 1.80 % 0.03 % (0.07) % (1.44) %
Return on average stockholders' equity (1.15 ) 58.57 0.90 (2.14 ) (40.93 )
Net interest margin 3.21 3.11 3.21 3.25 3.20
Efficiency ratio (1) 84.41 90.05 88.55 73.98 79.13
Bank net interest margin 3.34 3.24 3.34 3.39 3.33
Asset Quality
Nonperforming assets to total end of period assets 5.72 % 6.72 % 6.72 % 7.40 % 8.33 %
Nonperforming loans to total end of period loans 4.72 5.93 6.54 6.72 8.32
Net loan charge-offs to total average loans 0.85 0.34 0.55 0.60 0.52
Allowance for loan losses to total end of period loans 2.06 2.72 2.99 3.39 3.75
Allowance for loan losses to nonperforming loans 43.63 45.92 45.73 50.40 45.08
Nonperforming loans $ 26,452 $ 33,662 $ 36,055 $ 37,592 $ 46,739
Nonperforming assets 50,544 59,647 61,481 66,897 75,340
Net loan charge-offs 4,817 1,881 3,062 3,372 2,914
Capital
Total risk-based capital ratio 8.78 % 8.76 % 8.27 % 8.25 % 8.38 %
Tier 1 risk-based capital ratio 5.50 5.53 4.67 4.65 4.78
Tier 1 leverage ratio 3.86 3.90 3.33 3.39 3.38
(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.
Contact:
Daniel R. Kadolph
Chief Financial Officer
Centrue Financial Corporation
Email Contact
(815) 431-2838
Centrue Financial Corporation Announces 2013 Third Quarter Results
OTTAWA, IL--(Marketwired - Nov 1, 2013) - Centrue Financial Corporation (OTCQB: TRUE) (PINKSHEETS: TRUE)
Highlights
Third quarter of 2013 net loss was $79.9 thousand, compared to a net loss of $3.3 million for the third quarter of 2012.
The Company's principal subsidiary, Centrue Bank (the "Bank"), posted net income of $0.2 million for the third quarter of 2013 compared to a net loss of $3.2 million for the third quarter of 2012.
The Company and Bank's results for the third quarter were impacted by $0.9 million in provision expense and $0.8 million in other real estate owned ("OREO") expenses. Partially offsetting these expense items were gains from security sales and OREO sales.
The Bank's third quarter 2013 net interest margin was stable at 3.34%, a 1 basis point increase from the 3.33% reported in the third quarter of 2012.
Performing loans have increased by $12.9 million compared to year-end 2012. This has been accomplished by reducing nonperforming loans through charge-offs and pay downs and replacing them with new loan growth.
Centrue Bank remains "well-capitalized" at the end of the third quarter of 2013.
Centrue Financial Corporation (the "Company" or "Centrue") (OTCQB: TRUE) (PINKSHEETS: TRUE), parent company of Centrue Bank, reported third quarter net loss of $80 thousand, or ($0.10) per common diluted share, compared to a net loss of $3.3 million or ($0.63) per common diluted share for the third quarter 2012. For the first nine months of 2013, the Company reported net income of $4.0 million, or $0.39 per common diluted share, as compared to a net loss of $3.7 million, or ($0.87) per common diluted share, for the same period in 2012.
Securities
Total securities equaled $142.1 million at September 30, 2013, representing a decrease of $59.3 million, or 29.4%, from December 31, 2012 and a decrease of $39.4 million, or 21.7%, from the same quarter in 2012. The net decrease from third quarter 2012 was primarily related to a timing difference in securities sold and the subsequent reinvestment of $30.0 million completed in October 2013.
Loans
Performing loans increased $12.9 million since December 31, 2012. This has been accomplished by reducing nonperforming loans through charge-offs and pay downs and replacing them with new loan growth. Total loans equaled $560.8 million, representing an increase of $1.8 million, or 0.3%, from December 31, 2012 and a decrease of $0.7 million from the third quarter 2012. The net increase from year-end 2012 was related to new loans being booked above the level of normal attrition, pay-downs, loan charge-offs and transfers to OREO. Economic conditions remain relatively unchanged from prior years, with decreased loan demand and very strong competition for new commercial loans.
Funding and Liquidity
Total deposits equaled $754.6 million, representing a decrease of $30.7 million, or 3.9%, from December 31, 2012 and a decrease of $28.1 million, or 3.6%, from September 30, 2012. The net decrease from year-end 2012 was largely related to maturing time deposits not being renewed and public funds being drawn down as school districts run down their funds before property tax revenues replenish their balances. Core deposits were slightly improved over year-end 2012 and were $27.7 million above the same quarter in 2012.
The Bank's overall liquidity position remains strong with funding available for any new loan opportunities.
Credit Quality
The Bank's key credit quality metrics are as follows:
The allowance for loan losses to total loans was 2.06% at September 30, 2013, compared to 3.75% at September 30, 2012. 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 September 30, 2013.
The provision for loan losses for the third quarter of 2013 was $0.9 million, a decrease from the $5.8 million recorded in the third quarter of 2012. The third quarter of 2013 provision level decrease was driven by decreasing levels of nonperforming loans and stabilizing collateral values on troubled loans.
Net loan charge-offs for the third quarter of 2013 were $4.8 million, or 0.85% of average loans, compared with $2.9 million, or 0.52% of average loans, for the third quarter of 2012. Loan charge-offs during the third quarter of 2013 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. 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 $26.5 million at September 30, 2013, from $46.7 million at September 30, 2012. The $20.2 million decrease from the third quarter of 2012 to the third quarter of 2013 was due to a combination of successful loan workout strategies, charge-offs referenced above and transfers to OREO. The $26.5 million recorded at September 30, 2013 includes $19.1 million in nonaccrual loans and $7.4 million in troubled debt restructures. The level of nonperforming loans to end of period loans was 4.72% at September 30, 2013, compared to 6.72% at December 31, 2012 and 8.32% at September 30, 2012.
The coverage ratio (allowance for loan losses to nonperforming loans) was 43.63% at September 30, 2013, compared to 45.08% at September 30, 2012.
Other real estate owned decreased to $24.1 million at September 30, 2013, a decrease from $28.6 million at September 30, 2012. In the third quarter of 2013, management converted collateral securing problem loans to properties ready for disposition in the net amount of $0.2 million. Third quarter additions were more than offset by $1.7 million in dispositions and $0.4 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 $50.5 million at September 30, 2013, a decrease of $24.8 million from the $75.3 million held at September 30, 2012. The ratio of nonperforming assets to total assets was 5.73% at September 30, 2013, 7.40% at December 31, 2012 and 8.33% at September 30, 2012.
The past due ratio was 4.44% at September 30, 2013 compared to 7.40% at September 30, 2012. Action Listed Loans (classified and criticized loans) declined to $75.2 million at September 30, 2013 from $80.8 million at December 31, 2012 and $94.0 million at September 30, 2012.
Net Interest Margin
The Company's net interest margin was 3.21% for the third quarter of 2013, a 1 basis point increase over the 3.20% reported in the third quarter of 2012. The Bank's net interest margin was 3.34% for the third quarter of 2013, a 1 basis point increase to the third quarter 2012 net interest margin. The volatility of the net interest margin is being affected by several factors including: falling yields in both the securities and loan portfolios, an increase in earning assets, decreasing cost of funds and the removal of nonperforming loans out of earning assets. Comparing third quarter periods the yield on funding fell slightly more than the yield on earning assets.
Noninterest Income and Expense
Noninterest income totaled $3.1 million for the third quarter ended September 30, 2013, compared to $3.8 million for the same period in 2012. Excluding gains related to the sale of OREO, securities and other assets, noninterest income for the period was $0.4 million below what it was in the same period a year ago. This $0.4 million decrease was mainly due to decreases in mortgage banking income and revenue on bank-owned life insurance. For the nine months ended September 30, 2013, noninterest income was $13.6 million compared to $10.7 million for the same period in 2012. When excluding the same items from above, year-to-date noninterest income for 2013 was $0.7 million below the comparable period for 2012. The main drivers of this decline have been in the mortgage banking, services charges, income from OREO and bank-owned life insurance categories.
Total noninterest expense for the third quarter of 2013 was $8.3 million, which was $0.2 million below the same period in 2012. Excluding OREO Valuation Adjustments taken in both periods, noninterest expense levels were flat at $7.9 million. For the nine months ended September 30, 2013, noninterest expense was $25.1 million which was $0.2 million below the same period in 2012. When excluding the OREO Valuation Adjustments, year-to-date noninterest expense was $0.2 million above the comparable amount for 2012. Loan processing and collection costs saw the largest decrease from the prior year at $0.3 million, but were offset by higher expenses in several other categories.
Capital Management
As reflected in the following table, Centrue Bank was considered "well-capitalized" and the Company was considered "adequately-capitalized" under regulatory defined capital ratios as of September 30, 2013 except for the Company's Tier 1 leverage ratio which was 3.86%.
Centrue Financial Centrue Bank
Sep 30, 2013 Dec 31, 2012 Sep 30, 2013 Dec 31, 2012
Capital ratios:
Total risk-based capital 8.78 % 8.25 % 11.83 % 10.41 %
Tier 1 risk-based capital 5.50 % 4.65 % 10.57 % 9.14 %
Tier 1 leverage ratio 3.86 % 3.39 % 7.41 % 6.58 %
About the Company
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 http://www.centrue.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
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 Financial Statements and Tables
Unaudited Selected Quarterly Consolidated Financial Data
Centrue Financial Corporation
Unaudited Selected Quarterly Consolidated Financial Data
(In Thousands, Except Per Share Data)
Quarters Ended
9/30/13 6/30/13 3/31/13 12/31/12 9/30/12
Balance Sheet
Assets
Cash and cash equivalents $ 97,982 $ 51,393 $ 80,420 $ 63,271 $ 79,423
Securities 142,149 186,734 204,077 201,369 188,524
Loans 560,774 567,814 551,519 559,014 561,476
Allowance for loan losses (11,540 ) (15,457 ) (16,488 ) (18,948 ) (21,070 )
Other real estate owned 24,092 25,985 25,426 29,305 28,601
Other assets 70,175 70,492 70,044 69,763 67,871
Total assets 883,632 886,961 914,998 903,774 904,825
Liabilities and stockholders' equity
Deposits 754,583 748,507 805,279 785,337 782,597
Non-deposit funding 84,791 92,054 64,892 74,309 77,959
Other liabilities 17,872 17,499 16,749 16,212 15,562
Total liabilities 857,246 858,060 886,920 875,858 876,118
Stockholders' equity 26,386 28,901 28,078 27,916 28,707
Total liabilities and stockholders' equity $ 883,632 $ 886,961 $ 914,998 $ 903,774 $ 904,825
Statement of Income
Interest income $ 7,040 $ 6,891 $ 7,141 $ 7,361 $ 7,726
Interest expense (1,030 ) (1,072 ) (1,155 ) (1,270 ) (1,428 )
Net interest income 6,010 5,819 5,986 6,091 6,298
Provision for loan losses 900 850 600 1,250 5,750
Net interest income (loss) after provision for loan losses 5,110 4,969 5,386 4,841 548
Noninterest income 3,067 7,649 2,878 3,250 3,829
Noninterest expense 8,257 8,610 8,203 8,289 8,484
Income (loss) before income taxes (80 ) 4,008 61 (198 ) (4,107 )
Income tax expense (benefit) - - - (46 ) (788 )
Net income (loss) $ (80 ) $ 4,008 $ 61 $ (152 ) $ (3,319 )
Net income (loss) for common stockholders $ (633 ) $ 3,461 $ (480 ) $ (686 ) $ (3,848 )
Per Share
Basic earnings (loss) per common share $ (0.10 ) $ 0.57 $ (0.08 ) $ (0.11 ) $ (0.63 )
Diluted earnings (loss) per common share (0.10 ) 0.57 (0.08 ) (0.11 ) (0.63 )
Book value per common share $ (1.12 ) $ (0.70 ) $ (0.84 ) $ (0.87 ) $ (0.74 )
Tangible book value per common share (1.71 ) (1.34 ) (1.51 ) (1.58 ) (1.49 )
Basic weighted average common shares outstanding 6,063,441 6,063,441 6,063,441 6,063,441 6,063,441
Diluted weighted average common shares outstanding 6,063,441 6,063,441 6,063,441 6,063,441 6,063,441
Period-end common shares outstanding 6,063,441 6,063,441 6,063,441 6,063,441 6,063,441
Earnings Performance
Return on average total assets (0.04) % 1.80 % 0.03 % (0.07) % (1.44) %
Return on average stockholders' equity (1.15 ) 58.57 0.90 (2.14 ) (40.93 )
Net interest margin 3.21 3.11 3.21 3.25 3.20
Efficiency ratio (1) 84.41 90.05 88.55 73.98 79.13
Bank net interest margin 3.34 3.24 3.34 3.39 3.33
Asset Quality
Nonperforming assets to total end of period assets 5.72 % 6.72 % 6.72 % 7.40 % 8.33 %
Nonperforming loans to total end of period loans 4.72 5.93 6.54 6.72 8.32
Net loan charge-offs to total average loans 0.85 0.34 0.55 0.60 0.52
Allowance for loan losses to total end of period loans 2.06 2.72 2.99 3.39 3.75
Allowance for loan losses to nonperforming loans 43.63 45.92 45.73 50.40 45.08
Nonperforming loans $ 26,452 $ 33,662 $ 36,055 $ 37,592 $ 46,739
Nonperforming assets 50,544 59,647 61,481 66,897 75,340
Net loan charge-offs 4,817 1,881 3,062 3,372 2,914
Capital
Total risk-based capital ratio 8.78 % 8.76 % 8.27 % 8.25 % 8.38 %
Tier 1 risk-based capital ratio 5.50 5.53 4.67 4.65 4.78
Tier 1 leverage ratio 3.86 3.90 3.33 3.39 3.38
(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.
Contact:
Daniel R. Kadolph
Chief Financial Officer
Centrue Financial Corporation
Email Contact
(815) 431-2838
