Centrix Bank Reports Year Over Year Earnings Growth in Second Quarter 2010

BEDFORD, N.H., July 29 /PRNewswire-FirstCall/ -- Centrix Bank (OTC Bulletin Board: CXBT), today announced second quarter and six month 2010 financial results, highlighted by record net income.  Centrix is a full service commercial bank offering highly personalized and responsive service to small and medium-sized businesses, professionals, municipalities and not-for-profits.

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For the quarter ended June 30, 2010, the Bank reported net income available to common stockholders of $1.4 million or $0.44 per common share (diluted), up 303% from $336,000 or $0.11 per common share (diluted) for the same period last year.  This gain was primarily driven by an increase in interest and fees on loans, a reduction of interest expense and a decline in provisions for loan losses.  The Bank's net interest margin rose to 3.89% for the second quarter 2010 compared with 3.61% for the second quarter 2009.  The Bank recorded similarly strong earnings for the six months ended June 30, 2010, with $3.3 million or $1.05 per common share (diluted) compared to $1.2 million or $0.38 per common share (diluted) at June 30, 2009.  In addition to the reasons stated above, net gains on the sale of select investment securities, during the first quarter 2010, contributed to the increased earnings for the comparative six month period.

Total assets at June 30, 2010 amounted to $647.3 million, compared to $557.7 million at June 30, 2009, reflecting growth of $89.6 million or 16%.  Net loans grew to $433.7 million at June 30, 2010 from $385.5 million at June 30, 2009, an increase of 13%.  Deposits at June 30, 2010 totaled $544.1 million, compared to $453.7 million at June 30, 2009, representing 20% growth.

"As we maintained our historical trend of retaining high-quality customers and expanding our relationships with existing clients, we earned a meaningful number of new banking relationships with small and medium-sized businesses owners who were dissatisfied with the service, product selection and pricing they were getting from their banks.  We believe we offer all the leading-edge products they would expect at a larger bank, while providing superior service and a much more personalized approach to their depository, processing and lending needs," explained Joseph B. Reilly, President/CEO.

To continue providing market-leading service, during the second quarter, Centrix Bank completed a major operating systems conversion, facilitating new client-centric products and services, supporting its expanding branch network and improving internal pricing and account analysis capabilities.  The Bank also added three senior lending professionals to support its expanding client base and generate new customer relationships, and has secured additional office space to accommodate its growth.

"To be successful, a community bank must invest more in personnel and capabilities to provide a banking experience that attracts and retains business customers," explained Reilly. "The Bank has accomplished this while maintaining an efficiency ratio under 60% in both the second quarter and six months ended June 30, 2010, which we believe is the gold standard for a community bank."

Asset quality remains strong with net charge-offs for the quarter and six months ending June 30, 2010 totaling $20,000 and $89,000, respectively.  This compares with $421,000 and $540,000, respectively, for the comparable periods in 2009. The Bank's allowance for loan losses as a percent of total loans, excluding loans held for sale, was 1.27% at June 30, 2010 compared with 1.11% at June 30, 2009.  Non-performing assets as a percent of total assets at June 30, 2010 were 1.12%, compared to 0.05% at June 30, 2009.  The increase in non-performing assets is a direct result of the prolonged weak economic environment.

Reilly continued: "We see signs of economic improvement, but businesses still face numerous challenges.  Because we provide a high level of service and support to help companies succeed in difficult times and prosper in a strengthening economy, we believe Centrix is well-positioned to retain customers and attract new business.  We are also pleased to announce we have expanded into the Nashua, New Hampshire market with a Loan Production Office.  We anticipate opening a full service branch in Nashua in 2011, which represents an important market expansion for Centrix."  Reilly concluded, "Reflecting our continued growth and progress, the Bank's book value per common share at June 30, 2010 rose to $13.07 compared with $11.35 a year ago."

A copy of the Second Quarter Report 2010 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 "2010 Top 200 Community Banks" in the U.S., New Hampshire Business Review's "2009 Best of Business" for Local Best Bank for Small Business, Business NH Magazine's 2010 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 to 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, as well as, a loan production office in Nashua.  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