Centrix Bank Reports Record Assets, Loans and Deposits For 2009

BEDFORD, N.H., Feb. 18 /PRNewswire-FirstCall/ -- Centrix Bank (OTC Bulletin Board: CXBT), a full service commercial bank offering highly personalized and responsive service to small and medium-sized businesses and professionals, municipalities and not-for-profits, today announced full year and fourth quarter 2009 financial results, including the Bank's highest levels of total assets, loans, and deposits.

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For the quarter ended December 31, 2009, the Bank reported net income available to common stockholders of $1,242,000 or $0.40 per common share (diluted), compared with $880,000 or $0.30 per common share (diluted) for the same period the prior year.  This represents a 41% increase in net income for the quarter ended December 31, 2009, compared to the same period the prior year.  This increase resulted from higher interest earning assets and lower costs of funding, partially offset by higher operating costs associated with continued strong growth and expansion.

For the year ended December 31, 2009, Centrix reported net income available to common stockholders of $3.0 million or $0.99 per common share (diluted), compared with net income of $3.3 million or $1.11 per common share (diluted) in 2008, a decrease of $298,000 or 9%.  The decline in net income primarily reflected: an increase in the Bank's provision for loan losses; the impact of increased FDIC insurance rates, including a special assessment levied on all U.S. banks in the second quarter of 2009; and, moderate pressure on net margins due to the continuing low-interest rate environment.

Total assets at December 31, 2009 were a record $591.3 million, up more than 25% from $471.4 million at December 31, 2008, reflecting growth of $119.9 million.  Net loans grew to $409.2 million at December 31, 2009 from $357.4 million at December 31, 2008, an increase of 14%.  Additionally, at December 31, 2009, the Bank had $13.3 million in loans held for sale.  Deposits at December 31, 2009 rose 26% to $491.7 million, compared to $389.6 million at December 31, 2008.

"The growth we experienced in a number of key areas was a testament to hard work by the Centrix team to manage existing client relationships and seek out high quality opportunities to generate new business," said Joseph B. Reilly, President/CEO.  "While tightly managing operating expenses, we also continued investing in our infrastructure to position the Bank for growth, including systems, technology, and a new full service Dover branch that was immediately profitable when it opened in the second quarter 2009."

"In light of a weak economy, we increased our loan loss allowance and charged off amounts related to identified non-performing loans.  We have been working closely with our customers to help address their challenges.  Additionally, we have appropriate systems and controls in place to prudently manage this environment," Reilly continued.

Net loan charge-offs in 2009 were $738,000, compared with $387,000 in 2008.  However, total non-performing loans as a percentage of total loans in 2009 remained low at 0.98%, compared to 0.27% in 2008.  The allowance for loan losses increased to $5.2 million at December 31, 2009, compared with $3.7 million at December 31, 2008, as a result of growth in the loan portfolio and recognition of credit risk in this weakened economic environment.  The Bank's loss allowance as a percent of total loans, excluding loans held for sale, was 1.25% at year-end 2009, compared with 1.03% at year-end 2008.

Reilly concluded: "We anticipate the economy in 2010 will be relatively flat, however, there are also signs of modest recovery.  As we enter our second decade of serving the community, we believe the economic challenges of the past two years have also enabled us to demonstrate our value by providing superior service and solutions.  We feel this dedication to our customers positions us for being the bank of choice for opportunities as the economy recovers."

A copy of the Fourth Quarter Report 2009 is available on the Bank's web site at centrixbank.com.  To access the online Report, under the section titled "Investor Relations", click on "Financial Reports".  For more information about Centrix Bank, please contact Lucy T. Gobin, Senior Executive Vice President, CFO & COO at (603) 647-4446 or [email protected].    

About the Company

US Banker's "2009 Top 200 Community Banks" in the US, New Hampshire Business Review's "2009 Best of Business" for Local Best Bank for Small Business, and Business NH Magazine's 2009 NH's "100 Top Public Companies" & "2006 Business of the Year", Centrix Bank is a full service commercial bank offering highly personalized and responsive service to small and medium-sized businesses and professionals, municipalities and not-for-profits.  The Bank services customers throughout Southern New Hampshire from six full service offices located in Bedford, Concord, Dover, Manchester, Milford and Portsmouth.  Centrix's common shares are quoted on the OTC Bulletin Board (OTCBB) under the symbol "CXBT".  For more about Centrix Bank, please visit centrixbank.com or call (603) 647-4446.

Forward-Looking Statements

This release contains information and "forward-looking statements" that relate to matters that are not historical facts and are usually preceded by the words: "may", "will", "should", "could", "would", "plan", "potential", "estimate", "project", "believe", "intend", "anticipate", "expect", "target", and similar expressions.  These forward-looking statements are subject to significant risks, assumptions, and uncertainties.  Because of these and other uncertainties, our actual results may be materially different from those described in these forward-looking statements.  The forward-looking statements in this release speak only as of the date of the release, and we do not assume any obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.

SOURCE Centrix Bank