Centrix Bank Reports Record Assets, Loans and Deposits in Third Quarter 2009

BEDFORD, N.H., Oct. 29 /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 third quarter 2009 financial results that included the Bank's highest-ever levels of total assets, loans and deposits.

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For the quarter ended September 30, 2009, Centrix reported net income available to common shareholders of $617,000 or $0.20 per share (diluted) compared with $926,000 or $0.31 per share (diluted) for the same period the prior year. This decline primarily reflects an increase in the Bank's provision for loan losses and a decline in net interest margin. The decrease in the net interest margin is primarily the result of the low interest rate environment and the related asset sensitivity of the Bank.

Total assets at the end of the third quarter 2009 were a record $582.8 million, up more than 27% from $457.7 million at the end of the third quarter 2008 and up nearly 24% from the $471.4 million reported at December 31, 2008. Net loans of $343.7 million at September 30, 2008 rose 19% to $409.1 million at September 30, 2009. Deposits at September 30, 2009 totaled $484.4 million compared with $373.3 million at September 30, 2008, an increase of 30%.

"Our ability to continue growing the loan portfolio and deposits in a difficult economy underscores the value we're bringing to the Southern New Hampshire market and our continuing ability to grow market share with outstanding service and quality financial products," said Joseph B. Reilly, President/CEO.

"A critical component of our growth has been building and expanding customer relationships, which have generated cross-selling opportunities. Relationship banking enables us to offer excellent value to customers and avoid the need to offer promotional rates to attract business. We are encouraged by the continuing success of our business model."

During the third quarter 2009, the Bank increased its reserves to reflect loan growth and anticipated economic weakness into the first half of 2010. Reilly noted that, while the Bank has had a low amount of non-performing assets and few charge-offs, higher reserves were appropriate. For the quarter ended September 30, 2009, the provision for loan losses was $647,000 compared with $90,000 in the third quarter 2008.

In the second quarter 2009, the Bank opened a full-service branch in downtown Dover, New Hampshire, replacing a temporary loan production office. The opening of this new branch contributed to slightly higher operating expenses in the third quarter 2009 compared with the prior year's quarter. Reilly noted, however, that the branch has already been generating significant additional business in this key market.

"The Bank continues to be very well capitalized, giving us the resources to pursue quality lending opportunities in a market that continues to be characterized by large regional and national banks limiting their lending to small and middle market businesses," said Reilly. "We believe there is significant opportunity to build market share."

Reilly also stated that the Bank is pleased to announce that Sherilyn Burnett Young, founder and President of the firm Rath, Young and Pignatelli, P.C., will join the Bank's Board of Directors, effective November 1, 2009. Ms. Young's many accomplishments and past bank board experience will compliment the Bank's existing strong Board of Directors. "Our Board plays an important role in providing leadership for the Bank. Board members have an active role in building relationships with the area's business community and have been a key component in our success," said Reilly.

He concluded, "As we mark our tenth year of operations, we are gratified that during this very difficult period for banks, our approach to banking has continued to yield positive results. We are exceptionally proud of our employees, who have worked diligently to provide the service and support that generates tremendous customer loyalty."

A copy of the Third Quarter Report 2009 is available on the Bank's website at centrixbank.com. To access the online Report, under the section titled "Investor Relations," click on "Financial Reports."

About the Company

US Banker's "2009 Top 200 Community Banks" in the U.S., 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