CenterPointe Community Bank Reports 2011 Profit

Marketwired

HOOD RIVER, OR--(Marketwire -03/05/12)- CenterPointe Community Bank (Pinksheets: CENP.PK - News), headquartered in Hood River, Oregon, announced 2011 fiscal year net income of $703,000 before tax benefit; and net income of $1,203,000 after recognizing a $500,000 tax benefit resulting from partial reversal of the Bank's deferred tax valuation allowance.

Financial Highlights - Fiscal Year Ending December 31, 2011:

  • Total Assets $80.2 million - up 12.8%
  • Gross Loans $57.4 million - up 7.0%
  • Total Deposits $68.0 million - up 6.6%
  • Net Interest Margin 5.22% - up 14 basis points
  • Excellent Asset Quality - no loan delinquencies; no non-accrual loans; no other real estate owned
  • Bank remains comfortably "Well Capitalized" - as measured by regulatory guidelines

In announcing the Bank's second annual profit, Mahlon Vigesaa, CenterPointe's President and Chief Executive Officer, said, "CenterPointe Community Bank enjoyed another successful year; even though the economy continues to progress slowly we were happy with the respectable growth achieved in both loans and deposits. CenterPointe has generated profits for seven consecutive quarters allowing us to recognize an additional deferred tax benefit that relates to the initial operating losses sustained during the Bank's formative years, 2007-2009. As a result, year-over-year earnings increased from $0.52 to $1.03 per share."

CenterPointe's Chief Financial Officer, Jim Fortner, added, "The Bank's balance sheet has stabilized and our deposit mix improved significantly; locally sourced core deposits increased nearly $9.0 million allowing for brokered and wholesale deposits to decrease by $4.7 million -- the net difference being the more modest overall deposit growth of 6.6%." Commenting on the Bank's asset quality, Britt Thomas, the Bank's Chief Credit Officer, indicated, "There continues to be consistent performance from the loan portfolio -- as credit quality remains solid our Allowance for Loan Losses at 1.26% of gross loans is reasonable and sufficient at this time."

Over the past year CenterPointe has increased its deposit market share within the Columbia River Gorge region and has implemented a "Buy Local, Bank Local" theme in its marketing strategy. Additionally, CenterPointe recently obtained regulatory approval for expanding its physical presence into the Bingen/White Salmon, Washington market located immediately across the Columbia River from Hood River, Oregon. CenterPointe intends to occupy the previous First Independent Bank branch location by initially providing ATM and night depository services beginning summer 2012.

ABOUT CENTERPOINTE COMMUNITY BANK
CenterPointe Community Bank (Pinksheets: CENP.PK - News) is a State of Oregon chartered and FDIC insured community bank. Initially opened September 2007, the Bank is headquartered in Hood River, Oregon, with a second full service branch office located in The Dalles, Oregon. CenterPointe Community Bank is the only local community bank headquartered in the Columbia River Gorge region. Its designated service area encompasses Wasco and Hood River counties in Oregon, and Klickitat County in Washington.

Additional information about CenterPointe Community Bank, including its products, services, banking locations and financial information is available at www.centerpointebank.com

 

CENTERPOINTE COMMUNITY BANK FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)

EARNINGS AND PER SHARE DATA

For the Three Months Ended     December 31,   December 31,             %
                                   2011           2010       Change  Change
                              -------------  -------------  -------  ------

Interest income               $       1,070  $       1,036  $    34     3.3%
Interest expense                         68            148      (80)  -54.1%
                              -------------  -------------  -------
Net interest income                   1,002            888      114    12.8%
Provision for loan losses                 -              -        -      nm
Non-interest income (1)                  41             31       10    32.3%
Non-interest expense                    822            768       54     7.0%
                              -------------  -------------  -------
Pre-tax income                          221            151       70    46.4%
Income Tax Expense (Benefit)           (500)          (300)    (200)   66.7%
                              -------------  -------------  -------
Net income (loss)             $         721  $         451  $   270    59.9%
                              =============  =============  =======

Basic and diluted earnings
 per share                    $        0.63  $        0.40  $  0.23    57.5%
                              =============  =============  =======

Average shares outstanding -
 basic                            1,149,242      1,137,036   12,206     1.1%
Average shares outstanding -
 diluted                          1,151,313      1,137,036   14,277     1.3%

For the Twelve Months Ended    December 31,   December 31,              %
                                   2011           2010       Change  Change
                              -------------  -------------  -------  ------

Interest income               $       4,250  $       3,825  $   425    11.1%
Interest expense                        326            590     (264)  -44.7%
                              -------------  -------------  -------
Net interest income                   3,924          3,235      689    21.3%
Provision for loan losses               140            163      (23)  -14.1%
Non-interest income (1)                 111            166      (55)  -33.1%
Non-interest expense                  3,192          2,947      245     8.3%
                              -------------  -------------  -------
Pre-tax income                          703            291      412   141.6%
Income Tax Expense (Benefit)           (500)          (300)    (200)   66.7%
                              -------------  -------------  -------
Net income (loss)             $       1,203  $         591  $   612   103.6%
                              =============  =============  =======

Basic and diluted earnings
 per share                    $        1.05  $        0.52  $  0.53   101.9%
                              =============  =============  =======

Average shares outstanding -
 basic                            1,145,720      1,126,507   19,213     1.7%
Average shares outstanding -
 diluted                          1,149,704      1,126,507   23,197     2.1%

(1) Includes net gain on sale of securities during 2010 of $10 for the
 three months ending 12/31/2010 and $83 for the twelve months ending
 12/31/2010. There were no security sales during the twelve months ending
 12/31/2011.



SELECTED FINANCIAL RATIOS
(annualized)
                                         December 31,  December 31,
For the Three Months Ended                   2011          2010      Change
                                         ------------  ------------  ------

Net interest margin                              4.89%         5.07%  (0.18)
Return on average equity                        38.63%        28.45%  10.18
Return on average assets                         3.32%         2.46%   0.86
Efficiency ratio (1)                            78.81%        83.57%  (4.76)

                                         December 31,  December 31,
For the Twelve Months Ended                  2011          2010      Change
                                         ------------  ------------  ------

Net interest margin                              5.22%         5.08%   0.14
Return on average equity                        17.08%         9.87%   7.21
Return on average assets                         1.52%         0.88%   0.64
Efficiency ratio (1)                            79.11%        86.65%  (7.54)

Notes:
(1) Non-interest expense divided by net interest income plus non-
 interest income



CENTERPOINTE COMMUNITY BANK FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)

BALANCE SHEET                  December 31,   December 31,              %
                                   2011           2010       Change  Change
                              -------------  -------------  -------  ------

Cash and due from banks       $       2,063  $       2,643  $  (580)  -21.9%
Fed funds sold                          410          5,530   (5,120)  -92.6%
Time deposits                         2,477          2,494      (17)     nm
Investment securites
 available-for-sale                  15,255          5,488    9,767   178.0%
Gross loans                          57,466         53,704    3,762     7.0%
Allowance for loan losses              (728)          (636)     (92)   14.5%
                              -------------  -------------  -------
Loans, net of allowance for
 loan losses                         56,738         53,068    3,670     6.9%
Other assets                          3,236          1,857    1,379    74.3%
                              -------------  -------------  -------
Total assets                  $      80,179  $      71,080  $ 9,099    12.8%
                              =============  =============  =======

Non-interest-bearing deposits $      26,756  $      16,714  $10,042    60.1%
Interest-bearing deposits            41,283         47,094   (5,811)  -12.3%
                              -------------  -------------  -------
Total deposits                       68,039         63,808    4,231     6.6%
Borrowings                            4,000              -    4,000      nm
Other liabilities                       134            618     (484)  -78.3%
Stockholders' equity                  8,006          6,654    1,352    20.3%
                              -------------  -------------  -------
Total liabilities and
 stockholders' equity         $      80,179  $      71,080  $ 9,099    12.8%
                              =============  =============  =======

Period end shares outstanding     1,153,600      1,139,464   14,136     1.2%

Book and tangible book value
 per share                    $        6.94  $        5.84  $  1.10    18.8%


Contact:
CONTACTS:
Mahlon Vigesaa
President & Chief Executive Officer
541-308-1311
Email Contact
Jim Fortner
Chief Financial Officer
541-308-1317
Email Contact

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