Centrix Bank Reports 15% Year-Over-Year Asset Growth in Third Quarter 2011

BEDFORD, N.H., Oct. 27, 2011 /PRNewswire/ -- Centrix Bank (OTC Bulletin Board: CXBT) today announced third quarter and nine month 2011 financial results, highlighted by solid asset, loan and deposit growth.  Centrix is a full service commercial bank offering highly personalized and responsive service to small and medium-sized businesses, professionals, municipalities and not-for-profit organizations.

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For both the quarters ended September 30, 2011 and September 30, 2010, the Bank reported net income available to common shareholders of $1.2 million or $0.39 per common share (diluted).  The Bank recorded net income available to common shareholders for the nine months ended September 30, 2011 of $3.9 million or $1.23 per common share (diluted), compared to $4.5 million or $1.44 per common share (diluted) for the nine months ended September 30, 2010.  Net income for the first nine months of 2010 included $1.4 million of gains on the discretionary sale of select investment securities.

Third quarter 2011 earnings available to common shareholders reflected the effects of the Bank's redemption of $7.9 million of Preferred Stock previously issued under the U.S. Treasury Capital Purchase Program (CPP).  This redemption required the Bank to fully recognize the remaining cost related to the Warrant Preferred Stock issued in conjunction with participation in the CPP.  Excluding the above-referenced discretionary gains in 2010 and these CPP redemption costs in 2011, net income available to common shareholders for the nine months ended September 30, 2011 would have increased 12% over the 2010 comparable period.  The Bank's net interest margin increased to 3.83% in the third quarter 2011, compared with 3.80% in the third quarter 2010.

During the third quarter, the Bank finalized the issuance of $24.5 million in Preferred Stock to the U.S. Treasury under its Small Business Lending Fund (SBLF) program.  This capital enabled the Bank to redeem its CPP preferred stock and will provide additional low-cost, Tier 1 capital to support the expansion of its small business lending program.  The initial dividend rate on the Preferred Stock was 2.27%.  This dividend rate can fluctuate based upon changes in the amount of the Bank's "Qualified Small Business Lending" as compared to a baseline level.  Effective October 1, 2011, as a result of the Bank's small business lending level, the dividend rate was reduced to 1.00%.

"During a period when many banks struggled to meet earnings and growth objectives, we were gratified to grow our balance sheet and maintain a strong net interest margin," said Joseph B. Reilly, President/CEO.  "The diligent efforts of our lending and business development teams enabled us to attract new relationships and expand business with existing customers.  Our disciplined pricing approach, combined with outstanding service, has positioned us well in our served markets."  

Total assets at September 30, 2011 were $758.9 million, up $98.7 million or 15%, compared to $660.2 million at September 30, 2010.  Net loans grew to $492.9 million at September 30, 2011 from $445.7 million at September 30, 2010, an increase of 11%.  Deposits at September 30, 2011 totaled $603.2 million, compared to $530.8 million at September 30, 2010, representing 14% growth.  Reflecting this growth and progress, the Bank's book value per common share at September 30, 2011 increased to $15.44, compared with $13.59 a year ago.

Reilly explained that the Bank has maintained its historically high level of asset quality.  Net charge-offs for the nine months ending September 30, 2011 totaled $881,000, compared with net charge-offs of $591,000 for the comparable period in 2010.  The Bank's allowance for loan losses as a percent of total loans, excluding loans held for sale, was 1.19% at September 30, 2011, compared with 1.22% at September 30, 2010.  Non-performing assets as a percent of total assets at September 30, 2011 were 0.42%, compared to 1.03% at September 30, 2010.  Mr. Reilly noted the decrease in non-performing assets is the result of careful management of problem loans, strong underwriting and risk management practices, and a stabilization of economic conditions in the Bank's local markets.

A copy of the Third Quarter Report 2011 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."  For more information about financial reports, please contact Lucy T. Gobin, Senior Executive Vice President, CFO & COO at (603) 647-4446 or [email protected].

About the Company

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-profit organizations.  The Bank services customers throughout southern New Hampshire and beyond from six full service offices located in Bedford, Concord, Dover, Manchester, Milford and Portsmouth, and a loan production office in Nashua.  Centrix was named to SNL Financial's 2010 annual list of "Top 100 Best Community Banks" in the U.S., US Banker magazine's "2011 Top 200 Community Banks" in the U.S., New Hampshire Business Review's "2011 Best of Business" for Local Best Bank for Small Business, Business NH Magazine's 2010 NH's "100 Top Public Companies" and "2006 Business of the Year."  The Company'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